| Rank | Factor | Weight | Why it Matters |
|---|---|---|---|
| 1 | Earnings Growth (EPS / Profit Growth) | 18 | Stock prices follow earnings in the long run |
| 2 | ROCE (Capital Efficiency) | 14 | High ROCE enables sustainable compounding |
| 3 | Revenue Growth | 10 | Confirms demand & scalability |
| 4 | Management Quality & Integrity | 10 | Decides capital allocation & survival |
| 5 | Valuation (Price Paid) | 9 | Determines future return potential |
| 6 | Balance Sheet Strength (Low Debt) | 8 | Protects compounding during downturns |
| 7 | Cash Flow Quality | 7 | Separates real profits from accounting profits |
| 8 | Competitive Advantage (Moat) | 7 | Sustains margins & growth |
| 9 | ROE | 6 | Shareholder return efficiency |
| 10 | Reinvestment Opportunity | 5 | Allows long growth runway |
| 11 | Operating Margins (OPM) | 4 | Enables operating leverage |
| 12 | Industry / Structural Growth | 4 | Tailwinds accelerate outcomes |
| 13 | Promoter Holding (Skin in Game) | 3 | Aligns incentives |
| 14 | Institutional Participation (FII/DII) | 3 | Confirmation signal, not a driver |
| 15 | Time & Patience | 2 | Amplifier, not a business factor |
đź“ŠÂ WEIGHT DISTRIBUTION SUMMARY
- Core Business Strength (Top 5) → 61%
- Financial Stability & Quality → 30%
- External / Behavioural Factors → 9%
👉 This shows business fundamentals dominate returns, not news or sentiment.
🧠 INVESTOR INSIGHT
- A stock can survive without institutions
- It cannot survive without earnings growth
- High ROCE + Growth + Reasonable valuation = non-linear returns
🎯 IDEAL “HIGH-PROBABILITY” PROFILE
A strong stock usually scores high in:
- Rank 1–5 → Mandatory
- Rank 6–9 → Safety & durability
- Rank 10–15 → Accelerators