Did the Peter Lynch Screener worked ?

In June 2014, I created a stock screener after re reading ‘One up on wall street’ by Peter lynch. You can read the old post here now lets review how those stocks performed vis a vis broader markets

1 Tata Consultancy Services Ltd. 2213.55 2696 21.80%
2 Lupin Ltd. 983.4 1838 86.90%
3 Amara Raja Batteries Ltd. 491.45 902 83.54%
4 MindTree Ltd. 807.65 1466 81.51%
5 DB Corp Ltd. 299.7 391 30.46%
6 CMC Ltd. 1689.2 2023 19.76%
7 Persistent Systems Ltd. 1060.75 1870 76.29%
8 Lakshmi Machine Works Ltd. 3697.35 3794 2.61%
9 Monsanto India Ltd. 2131.5 3282 53.98%
10 eClerx Services Ltd. 1169.15 1572 34.46%
11 NIIT Technologies Ltd. 427.5 417 -2.46%
12 Finolex Cables Ltd. 162.1 279 72.12%
13 Dhanuka Agritech Ltd. 380.35 642 68.79%
14 Zensar Technologies Ltd. 394.65 731 85.23%
15 VST Tillers Tractors Ltd. 1818.15 1592 -12.44%
Average return (equal weight portfolio) 46.84%
CNX Midcap 25.36%
BSE Small Cap 18.42%
Sensex 16.73%

The screener outperformed broader markets by some distance. Now as with any good screen based trading strategies you need replace the old guard with new performers, I am doing it after nine months you can review quaterly or yearly depends upon your comfort level.

If you run this public screen today, you get the following 15 stocks sorted based on market cap

Company Price
1 Tata Consultancy Services Limited 2696.45
2 National Aluminium Company Limited 49.95
3 Akzo Nobel India Limited 1495.4
4 Kaveri Seed Company Limited 970.85
5 Kajaria Ceramics Limited 805.9
6 Indraprastha Gas Limited 432.05
7 Alstom India Limited 713.25
8 Finolex Cables Limited 279.95
9 Motilal Oswal Financial Services Limited 295.7
10 Dhanuka Agritech Limited 639.75
11 VST Industries Limited 1700.8
12 IFB Industries Limited 514.7
13 Hindustan Media Ventures Limited 227.7
14 Sonata Software Limited 155.7
15 Lycos Internet Ltd. 34.15

3 stocks are common to previous screen, so we will leave them TCS, Finolex & Dhanuka and the 12 new stocks we will add them and revisit after 9 months to see if this screen is able to beat markets consistently. Only if a screen beats both bull and bear markets it can be adopted for trading and investing by investors

You can download calculations from here

Note this post is to educate you on building screens it is not recommendation to buy or sell any of of the above mentioned stocks