Stock Screening - Part 1: Ultimate Under-valued Small & Mid Cap Stocks

Stock screening is a complicated topic. Beyond usual attributes, many derived (for example, P/CF is a derived attribute of a given stock) ratios or attributes can make this convoluted for beginners. And then, there are "machine learning" models learning to pick awesome stocks based on data, especially through backtesting with historical data streams.

For Indian stock market, I use the screener.in tool (free) to save my screens. You can play with some public screens listed over there.

Here I present a specific screen focusing on "Undervalued Mid-Cap and Small-Cap" companies.

Free cash flow > 0 and 
Debt to equity < 1 and 
Pledged percentage < 10 and 
Current ratio > 1.4 and 
EPS > EPS last year   and 
Sales growth 3Years > 10 and 
Profit growth 3Years > 10 and 
Profit growth > 10 and 
Sales growth > 10 and 
Average return on equity 3Years  > 20 and 
Return on equity > 20 and 
Average return on capital employed 3Years > 20 and 
Market Capitalization < 10000 and
Market Capitalization > 50 and 
Profit growth 3Years > Price to Earning  and 
EVEBITDA <= 10 and 
Volume > 1000

Running this across all Indian stocks results just 3 stocks

Feel free to play with screening criterions and research meticulously resulting companies (manual research is tremendously important for any good analyst / investor)