Is it possible to find companies with good growth potential just on the basis of data?

Algos, strategies, code
1

After looking at the video of Mr. varinder Bansal https://www.youtube.com/watch?v=ZdcOSuQtltI

and his filter criterias for growth companies I used this query on https://www.tijorifinance.com

Market Capitilization > 500 AND Net Sales > 5yr Average Net Sales AND
Operating Profit Margin > 5yr Avg Operating Profit Margin AND
ROCE > 5yr Avg ROCE AND
Latest Quarter Promoter Holding > 50 AND
Latest Quarter Pledged Holding < 5 AND
Debtor Days < 3yr Avg Debtor Days AND
Market Capitilization < 20000 AND
ROCE > 20

And I got names of 31 companies which are

United Drilling Tool
SPIC
Zen Technologies
Gravita India
Dhanvarsha Finvest
Transpek Industry
Shree DigvijayCement
Seamec
Balu Forge Industrie
PDS Multinational
Oriental Aromatics
Huhtamaki India
Triveni Engg. & Inds
Privi Speciality Che
Hawkins Cookers
TCI Express
Welspun Corp
Bharat Rasayan
Godfrey Phillips
Rossari Biotech
Fert Chem Travancore
Happiest Minds Tech.
Astrazeneca Pharma I
Ratnamani Metals
JB Chem & Pharma
Alkyl Amines Chem
KEC International
Indigo Paints
Suven Pharma
Vaibhav Global
Vinati Organics

Now in those names hardly any company is trading at attractive valuation and most of them are trading at very high PB or their sales growth is very less or the stock is already up more than 5x, 10x so its kind of a risky proposition now to invest in them.

Now I am not sure if these filters alone can help identify good companies to invest in or if I am missing anything?

2

Perhaps other people found these names by running similar screeners and bought them up at lower prices, pushing their prices (and other ratios) up already?

3

Are you sure they were falling under these criteria a year back?

4

In any case these filters are supposed to identify growth companies not the one which have already grown.

5

these filters are supposed to identify growth companies

What is your definition of “growth companies”?

  • Does this definition enforce that the share price of a growth company will be low compared to some their price a few months or a year ago?
  • Which part of your formula enforces this?

I don’t see that any part of your formula has much to do with how much the stock price has grown in the recent past.