# Quality compounders — NSE scan

> Profit compounding above 15% a year for five years, still under 30× earnings, with the interest bill flat — growth that was not bought with debt.

Canonical: https://patternsradar.com/screener/quality-compounders

```sift
where profit_cagr_5y > 15
  and pe < 30
  and interest_cost_growth_yoy < 5
  and sector is not "Financial Services"
```

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 — compounding the market has already paid for is not an opportunity. The interest leg is the honest approximation available here: 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 — for a bank, interest paid is the 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.

Category: [Fundamentals](https://patternsradar.com/scans/fundamentals.md). Default universe: top 500 NSE stocks by 20-day turnover.

The rendered page runs this scan against the latest session and can replay it across the last 250 sessions to measure its hit rate: https://patternsradar.com/screener/quality-compounders.