How to Build Good 100x Portfolio in 2025 | How to buy multi bagger stocks in India | How to analysis and Major Factors of a company | Stock Selection criteria 2025

 Stock Selection criteria 2025

How to Build Good 100x Portfolio in 2025 | How to buy multi bagger stocks in Indai | How to analysis and Major Factors of a company | Stock Selection criteria 2025

Operating Profit Margin (OPM):-

Measures Operational efficiency, strong pricing, power, and cost efficiency

• Higher OPM means the company earns well before interest and taxes.
  
• OPM should be More than 20%

Earnings per share (EPS):-

• Stability in EPS shows consistent profitability over time
• EPS should be stable.

Debt to Equity Ratio (D/E):-

• Ensures the company isn't overly dependent on debt for growth.
• D/E should be Less than 1

Return On Equity (ROE):-

• Shows the company's ability to generate good returns for shareholders.
• ROE should be more than 15%

Return On Capital Employed (ROCE):-

• Reflects efficiency in using capital to generate profits.
• Should be more than 15%

Net Profit:-

• Strong Interest Coverage Low risk of defaults
• Should be at least 2 times interest expenses.

Promoter's Holding:

• No Decrease in Holding of Promoters, FIIs & DIIs.
• Stability shows confidence of key stakeholders
  

Cash Flow:-

• Should Be Positive
  
• Confirms that the company is generating real cash from operations.
  

Balance Sheet:-

• Should be increased (assets, equity, reserve).
• Demonstrate financial strength and growth in resources.
  
  

10 Years of Sales & Profit Growth:

• Should be more than 10%
• Indicates long-term growth and Business Sustainability
  
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