Quality compounders
Profit compounding above 15% a year for five years, under 30 times earnings, interest costs up less than 5%, financials excluded.
Three legs, each closing a hatch the others leave open. Five years of trailing-twelve-month profit growth is the compounding test: one good year against a soft base cannot carry a five-year rate, and a company that grew through a full cycle is a different animal from one that caught a single upswing. The P/E ceiling is the price test, because compounding the market has already paid for is not an opportunity. The interest leg is the best approximation I can offer. Indian quarterly filings carry a profit-and-loss statement and no balance sheet, so there is no debt figure to screen on, and the interest bill is what we can see. Flat interest beside compounding profit is growth funded from earnings; a jump is the tell that it was funded with borrowing. Lenders are excluded for exactly that reason, since for a bank the interest paid is a cost of goods and rises with a healthy loan book. Coverage is the real limit. The results backfill starts in 2018, so roughly half of covered names can answer a five-year question at all and the rest are NULL, which never matches. Widen it with `profit_cagr_3y`, lengthen it with `profit_cagr_7y`, or add `profit_growth_yoy > 15` to insist the latest quarter is still delivering.
More fundamentals:Promoters buyingPromoters sellingHigh promoter holding in an uptrendInstitutions on both sidesTight public float
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