Filters:
- PAT should be increasing Year on Year
- Sales should be increasing Year on Year
- Expenses should be in proportion with the sales.
- EPS should be increasing Year on Year
- ROE should be increasing
- Reserves should br increasing Year on Year
- Other Incomes shouldn’t being the major component in the earnings
- Promoters holding kept unchanged of increasing. Avoid pledged promotor holding companies
- Net cash flow should be increasing. The company should have plenty of cash in their account
- Borrowings should decrease Year on Year
These are some of the filter which I apply while selecting the stock and then I will analyze them with the help of Technical Analysis.