So many stocks…So little time
Investing is largely a process of elimination, and the more efficiently you can eliminate investments that do not check the boxes on your investing checklist, the more time you can spend diving deep into the ones that do.
For equity investors in the Indian Stock Market, there are about 1,500 listed stocks on the NSE and nearly 5,000 on the BSE, to choose from when making investment decisions. Sure, there are ways to whittle that list down using filters of market capitalisation and sectors, but you’re still left with a few hundred potential investments to sift through.
Some investment-related sites / blogs offer Microsoft excel templates in which one can download and manually input relevant information from sources like annual reports or moneycontrol.com. These sheets have formulae that, based on the information manually copy-pasted, show indicators that aid in judging the investment-worthiness of the stock. One such Indian investment site offers such a stock evaluation template for a fee, the accompanying instruction video shows it takes two hours to fill in all the information. That’s for one stock!
Even if you do manage to stay focused to do the copy-pasting without errors, best of luck trying to resist the temptation to go ahead and buy a stock simply because of the time that’s gone into getting the numbers in one place.
So, I was excited when I came across screener.in and it’s ‘export to excel’ functionality with ten years of financial statement information. I used it to make the first version of the TCI Rapid X-Ray. I received a lot of emails asking for the template plus I noticed some tweaks that were needed in the template, which needed a revision. This post provides easy download access to the new TCI Rapid X-Ray to save your time when evaluating stocks.
Using the new TCI Rapid X-Ray Premium Template
Step 1: Download the TCI Rapid X-Ray
Step 2: Using the template and what’s new
The point of the TCI Rapid Stock XRay is to automate the task of pulling 10 years of financial information and to be able to quickly scan what the numbers say.
Getting up and running
Navigate to screener.in
Click ‘Login’ on the upper right corner
Register or Login (if you have previously registered). Login in. You see a screen similar to the one below.
Navigate to https://www.screener.in/excel/
Click ‘Browse’, navigate to the folder where you downloaded the TCI Rapid XRay Premium file and select. Click Upload. If successful, the browser navigates to the main page. You are all set.
Enter the name of a company you would like to examine in the search bar, select from the options presented.
screener shows the main page for the selected company. In this case, for Bajaj Auto Ltd
Click the blue ‘Export to Excel’ button on the top right of the page. Save and open the excel file downloaded as a result.
In addition to the default screener.in tabs, you will see an additional ‘TCI Rapid XRay’ tab. This tab summarises key metrics to quickly decide whether the company matches your investment strategy (high sales growth / high profitability / high ROCE / declining Debt-Equity…) with colour coded cells and in-cell graphs to represent trends.
Other Metrics summarised:
- Three Basic valuation sanity checks: Basic CFO-derived valuation, Average Free-Cash-Flow in perpetuity model and Discounted Cash Flow valuation range
- Earnings per Share growth and Price Growth over the last 10 years
- Cash Flow from Operations (CFO), Free-Cash-Flow (FCF) and Net Profit compared over the last 10 years
Note that this is the just the jump-off point in evaluating a stock. If the basic financial metrics look healthy and the stock doesn’t look like it’s already priced assuming it’s the next Apple, then the real work of investment evaluation follows. Whether you think the company will prosper and grow profitably over the next 5-10 years.
Click here to buy the TCI Rapid XRay Premium (Immediately usable version available for download for ₹1,499)
Do let me know if you find it useful, either in the comments or by writing in at ‘thecalminvestor [at] gmail [dot] com’. Best of luck!
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