SAPM Assignment 2

This filter is designed to find profitable, financially sound companies that are available at a sensible price rather than stocks that are either too expensive or cheap for a dangerous reason. We look for companies earning at least ₹10 per share, with a P/E of 10–25 so we are not paying too much for each rupee of profit, a P/B of 0.8–3 so the market price remains reasonably connected to the company’s underlying assets, and a dividend yield of 1–6% to provide evidence that the business is capable of returning real cash to its shareholders. Finally, we sort by EV/EBITDA from lowest to highest to bring businesses that appear cheapest relative to their operating earning power to the top. The purpose is to identify businesses with real profits, reasonable prices, tangible underlying value, shareholder-friendly cash returns, and strong value for the overall business—not simply to find the cheapest stock.