Data

SN Company Return on Assets Cash Flow Gross Margin Asset Turnover

PAT/Beg. total CFO/ Beg. (Revenue-COGS)/ Revenue/ Beg. total

assets total assets Revenue assets
t t-1 t t t-1 t
1 Asian Paints 15.6% 17.2% 16.1% 40.8% 43.2% 1.27
2 Bharti Airtel 0.5% 1.7% 12.2% 54.6% 56.4% 0.35
3 Hero Motocorp 22.8% 25.6% 24.6% 32.5% 33.0% 1.99
4 Hindustan Unilever 31.1% 29.0% 36.1% 49.8% 46.2% 2.10
5 ITC Ltd. 18.8% 19.2% 21.9% 60.9% 60.0% 0.72
6 JSW Steel 6.9% 4.1% 13.7% 43.5% 49.2% 0.77
7 Larsen & Toubro 3.2% 2.8% -4.4% 42.5% 41.7% 0.52
8 Maruti Suzuki 14.1% 16.3% 21.0% 31.1% 31.3% 1.42
9 Reliance Industries 4.7% 4.6% 9.4% 21.5% 20.2% 0.51
10 Tata Motors 2.3% 2.3% 8.1% 35.1% 37.1% 0.98

Determine Piotroski F-Score for these companies

Piotroski's F-Score
SN Company I. Profitability II. Operating Efficiency
ROA ∆ROA CFO Accrual ∆Margin ∆Turn
>0 >0 >0 CFO>RoA >0 >0
1 Asian Paints
2 Bharti Airtel
3 Hero Motocorp
4 Hindustan Unilever
5 ITC Ltd.
6 JSW Steel
7 Larsen & Toubro
8 Maruti Suzuki
9 Reliance Industries
10 Tata Motors
 Asset Turnover Leverage Current Ratio Equity shares

Revenue/ Beg. total Long term debt/ Beg. Current assets/ Outstanding equity
assets total assets Current liabilities shares (million)
t-1 t t-1 t t-1 t t-1
1.34 0.20% 0.32% 1.55 1.79 959 959
0.43 0.00% 0.00% 0.43 0.32 3998 3997
2.05 0.31% 0.74% 2.01 1.81 200 200
2.13 0.00% 0.00% 1.31 1.32 2165 2165
0.80 0.00% 0.00% 2.85 3.69 12247 12179
0.65 32.53% 34.60% 0.80 0.72 2417 2417
0.49 30.45% 32.30% 1.26 1.38 1404 1403
1.48 0.02% 0.00% 0.51 0.66 302 302
0.46 0.00% 21.62% 0.59 0.62 5925 5913
1.00 18.93% 22.75% 0.95 1.01 3397 3397

III. Solvency, liquidity & Funding Total

∆Lever ∆Liquid ∆Equity
<0 >0 ≤0 0 to 9
Data

SN Company Return on Assets Cash Flow Gross Margin Asset Turnover

PAT/Beg. total CFO/ Beg. (Revenue-COGS)/ Revenue/ Beg. total

assets total assets Revenue assets
t t-1 t t t-1 t
1 Asian Paints 15.6% 17.2% 16.1% 40.8% 43.2% 1.27
2 Bharti Airtel 0.5% 1.7% 12.2% 54.6% 56.4% 0.35
3 Hero Motocorp 22.8% 25.6% 24.6% 32.5% 33.0% 1.99
4 Hindustan Unilever 31.1% 29.0% 36.1% 49.8% 46.2% 2.10
5 ITC Ltd. 18.8% 19.2% 21.9% 60.9% 60.0% 0.72
6 JSW Steel 6.9% 4.1% 13.7% 43.5% 49.2% 0.77
7 Larsen & Toubro 3.2% 2.8% -4.4% 42.5% 41.7% 0.52
8 Maruti Suzuki 14.1% 16.3% 21.0% 31.1% 31.3% 1.42
9 Reliance Industries 4.7% 4.6% 9.4% 21.5% 20.2% 0.51
10 Tata Motors 2.3% 2.3% 8.1% 35.1% 37.1% 0.98

Determine Piotroski F-Score for these companies

Piotroski's F-Score
SN Company I. Profitability II. Operating Efficiency
ROA ∆ROA CFO Accrual ∆Margin ∆Turn
>0 >0 >0 CFO>RoA >0 >0
1 Asian Paints 1 0 1 1 0 0
2 Bharti Airtel 1 0 1 1 0 0
3 Hero Motocorp 1 0 1 1 0 0
4 Hindustan Unilever 1 1 1 1 1 0
5 ITC Ltd. 1 0 1 1 1 0
6 JSW Steel 1 1 1 1 0 1
7 Larsen & Toubro 1 1 0 0 1 1
8 Maruti Suzuki 1 0 1 1 0 0
9 Reliance Industries 1 1 1 1 1 1
10 Tata Motors 1 0 1 1 0 0
 Asset Turnover Leverage Current Ratio Equity shares

Revenue/ Beg. total Long term debt/ Beg. Current assets/ Outstanding equity
assets total assets Current liabilities shares (million)
t-1 t t-1 t t-1 t t-1
1.34 0.20% 0.32% 1.55 1.79 959 959
0.43 0.00% 0.00% 0.43 0.32 3998 3997
2.05 0.31% 0.74% 2.01 1.81 200 200
2.13 0.00% 0.00% 1.31 1.32 2165 2165
0.80 0.00% 0.00% 2.85 3.69 12247 12179
0.65 32.53% 34.60% 0.80 0.72 2417 2417
0.49 30.45% 32.30% 1.26 1.38 1404 1403
1.48 0.02% 0.00% 0.51 0.66 302 302
0.46 0.00% 21.62% 0.59 0.62 5925 5913
1.00 18.93% 22.75% 0.95 1.01 3397 3397

III. Solvency, liquidity & Funding Total

∆Lever ∆Liquid ∆Equity
<0 >0 ≤0 0 to 9
1 0 1 5
0 1 0 4
1 1 1 6
0 0 1 6
0 0 0 4
1 1 1 8
1 0 0 5
0 0 1 4
1 0 0 7
1 0 1 5
Data for Sequential Screening on Value & Quality Indicators
Stock P/BV F Score
Asian Paints 13.25 5
Bharti Airtel 1.67 4
Hero Motocorp 4.51 6
Hindustan Unilever 46.52 6
ITC Ltd. 2.87 4
JSW Steel 2.99 8
Larsen & Toubro 3.05 5
Maruti Suzuki 4.83 4
Reliance Industries 2.15 7
Tata Motors 0.53 5

Criteria: Lower P/BV (bottom 50%), Piotroski F-Score: 7 or more

Rank by Value (Inverse Order of P/BV)

Stock P/BV F Score Rank-P/BV
Asian Paints 13.25 5
Bharti Airtel 1.67 4
Hero Motocorp 4.51 6
Hindustan Unilever 46.52 6
ITC Ltd. 2.87 4
JSW Steel 2.99 8
Larsen & Toubro 3.05 5
Maruti Suzuki 4.83 4
Reliance Industries 2.15 7
Tata Motors 0.53 5

Value Screen Output

Stock P/BV F Score

Value & Quality Screen Output

Stock P/BV F Score
Data for Sequential Screening on Value & Quality Indicators
Stock P/BV F Score
Asian Paints 13.25 5
Bharti Airtel 1.67 4
Hero Motocorp 4.51 6
Hindustan Unilever 46.52 6
ITC Ltd. 2.87 4
JSW Steel 2.99 8
Larsen & Toubro 3.05 5
Maruti Suzuki 4.83 4
Reliance Industries 2.15 7
Tata Motors 0.53 5

Criteria: Lower P/BV (bottom 50%), Piotroski F-Score: 7 or more

Rank by Value (Inverse Order of P/BV)

Stock P/BV F Score Rank-P/BV
Asian Paints 13.25 5 9
Bharti Airtel 1.67 4 2
Hero Motocorp 4.51 6 7
Hindustan Unilever 46.52 6 10
ITC Ltd. 2.87 4 4
JSW Steel 2.99 8 5
Larsen & Toubro 3.05 5 6
Maruti Suzuki 4.83 4 8
Reliance Industries 2.15 7 3
Tata Motors 0.53 5 1

Value Screen Output

Stock P/BV F Score
Tata Motors 0.53 5
Bharti Airtel 1.67 4
Reliance Industries 2.15 7
ITC Ltd. 2.87 4
JSW Steel 2.99 8

Value & Quality Screen Output

Stock P/BV F Score
Reliance Industries 2.15 7
JSW Steel 2.99 8
Data
Value Quality
E/P B/P EBIDTA/EV RoA D/A
> is better > is better > is better > is better < is better
Adani Ports & Special Economic Zone Ltd 0.31 0.06 0.09 0.06 0.53
Cipla Ltd 0.28 0.03 0.05 0.09 0.02
Eicher Motors Ltd 0.12 0.03 0.05 0.31 0.02
Grasim Industries Ltd 1.07 0.05 0.09 0.09 0.06
Infosys Ltd 0.88 0.18 0.22 0.20 -
Mahindra & Mahindra Ltd 0.45 0.09 0.10 0.10 0.09
Oil & Natural Gas Corpn Ltd 1.02 0.11 0.18 0.08 0.07
Sun Pharmaceuticals Industries Ltd 0.28 0.02 0.04 -0.01 0.24
Titan Company Ltd 0.07 0.02 0.02 0.14 0.27
UltraTech Cement Ltd 0.28 0.02 0.06 0.06 0.32

Index Mean 0.42 0.06 0.09 0.11 0.21

Index Standard Deviation 0.28 0.05 0.05 0.09 0.25

Criteria: Select top 3 companies by Aggregate Z Score on Value & Quality

Z-Score Calculation
Value Composite Quality Composite
E/P B/P EBIDTA/EV RoA D/A
Adani Ports & Special Economic Zone Ltd
Cipla Ltd
Eicher Motors Ltd
Grasim Industries Ltd
Infosys Ltd
Mahindra & Mahindra Ltd
Oil & Natural Gas Corpn Ltd
Sun Pharmaceuticals Industries Ltd
Titan Company Ltd
UltraTech Cement Ltd

Index Mean 0.42 0.06 0.09 0.11 0.21

Index Standard Deviation 0.28 0.05 0.05 0.09 0.25

Simultaneous Screening Result

Value Quality
E/P B/P EBIDTA/EV RoA D/A
 Quality
Accruals
< is better
-0.00
0.02
-0.14
-0.03
0.05
-0.06
-0.07
0.02
0.10
-0.03

0.06
0.20

uality Composite Z Scores Rank

Accruals Value Quality Aggregate

0.06
0.20

Quality
Accruals
Data
Value Quality
E/P B/P EBIDTA/EV RoA D/A
> is better > is better > is better > is better < is better
Adani Ports & Special Economic Zone Ltd 0.31 0.06 0.09 0.06 0.53
Cipla Ltd 0.28 0.03 0.05 0.09 0.02
Eicher Motors Ltd 0.12 0.03 0.05 0.31 0.02
Grasim Industries Ltd 1.07 0.05 0.09 0.09 0.06
Infosys Ltd 0.88 0.18 0.22 0.20 -
Mahindra & Mahindra Ltd 0.45 0.09 0.10 0.10 0.09
Oil & Natural Gas Corpn Ltd 1.02 0.11 0.18 0.08 0.07
Sun Pharmaceuticals Industries Ltd 0.28 0.02 0.04 -0.01 0.24
Titan Company Ltd 0.07 0.02 0.02 0.14 0.27
UltraTech Cement Ltd 0.28 0.02 0.06 0.06 0.32

Index Mean 0.42 0.06 0.09 0.11 0.21

Index Standard Deviation 0.28 0.05 0.05 0.09 0.25

Criteria: Select top 3 companies by Aggregate Z Score on Value & Quality

Z-Score Calculation
Value Composite Quality Composite
E/P B/P EBIDTA/EV RoA D/A
Adani Ports & Special Economic Zone Ltd -0.36 -0.17 -0.11 -0.51 1.30
Cipla Ltd -0.47 -0.74 -0.74 -0.17 -0.74
Eicher Motors Ltd -1.08 -0.66 -0.86 2.20 -0.74
Grasim Industries Ltd 2.34 -0.20 -0.10 -0.22 -0.60
Infosys Ltd 1.66 2.36 2.50 1.03 -0.82
Mahindra & Mahindra Ltd 0.14 0.62 0.14 -0.02 -0.46
Oil & Natural Gas Corpn Ltd 2.16 0.99 1.70 -0.31 -0.56
Sun Pharmaceuticals Industries Ltd -0.49 -1.00 -1.01 -1.32 0.14
Titan Company Ltd -1.23 -0.99 -1.30 0.35 0.25
UltraTech Cement Ltd -0.47 -0.83 -0.68 -0.56 0.45

Index Mean 0.42 0.06 0.09 0.11 0.21

Index Standard Deviation 0.28 0.05 0.05 0.09 0.25

Simultaneous Screening Result

Value Quality
E/P B/P EBIDTA/EV RoA D/A
Infosys Ltd 0.88 0.18 0.22 0.20 -
Oil & Natural Gas Corpn Ltd 1.02 0.11 0.18 0.08 0.07
Grasim Industries Ltd 1.07 0.05 0.09 0.09 0.06
 Quality
Accruals
< is better
-0.00
0.02
-0.14
-0.03
0.05
-0.06
-0.07
0.02
0.10
-0.03

0.06
0.20

uality Composite Z Scores Rank

Accruals Value Quality Aggregate
-0.31 -0.22 -0.50 -0.36 7
-0.20 -0.65 0.26 -0.20 6
-1.03 -0.87 1.33 0.23 5
-0.45 0.68 0.28 0.48 3
-0.08 2.18 0.64 1.41 1
-0.63 0.30 0.36 0.33 4
-0.66 1.62 0.30 0.96 2
-0.21 -0.84 -0.42 -0.63 10
0.21 -1.17 -0.04 -0.60 9
-0.48 -0.66 -0.18 -0.42 8

0.06
0.20

Quality
Accruals
0.05
-0.07
-0.03