My 9-Step Process of Finding CONSISTENT COMPOUNDERS | Incl. Worksheet with 59 Consistent Compounders
Shankar Nath Shankar Nath
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 Published On Oct 20, 2023

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In the world of Indian investing, the term "consistent compounders" has gained immense popularity. But what exactly does it mean, and how can you identify these gems in the stock market? In this video, we dive deep into the intricate world of consistent compounders. Infact, I have put forth here the nine key factors that I use when identifying consistent compounders which can potentially become multibaggers. Additionally, I have explored Asian Paints as a case study on how these principles apply in the real world. But that's not all! I've also prepared a handy worksheet for you to use to get you started on your journey to creating a robust portfolio of consistent compounders.

9 Process Steps:
1. High and Sustainable ROCE: Learn how to identify companies with consistent and high Return on Capital Employed.
2. Steady Revenue and Earnings Growth: Discover the importance of steady growth in sales and earnings for long-term investments.
3. Opportunity Size: Uncover the significance of a company's growth potential and market size.
4. Profit Margins and EPS Growth: Explore the role of profit margins and earnings per share in identifying compounders.
5. Free Cash Flow: Understand the importance of free cash flow and its impact on a company's financial health.
6. High-Quality Franchise: Learn what constitutes a high-quality franchise and why it matters.
7. Pricing Power: Discover why the ability to increase prices without losing customers is a vital trait.
8. Industry Market Share: Explore how market dominance can be a strong indicator of a compounder.
9. Quality Management: Assess the character and ability of a company's leadership for long-term success.

πŸ‘‰ Video Chapters:
00:00 What is a Consistent Compounder?
00:53 1. Return on Capital Employed
02:23 2. Consistent Sales Growth
03:14 3. Large Opportunity Size
04:18 4. Profit Margin & Growth
05:34 5. Growth in Free Cash Flow
07:10 6. High Quality Business Franchise
09:52 7. Pricing Power
11:00 8. Industry Market Share
11:38 9. Quality Management
12:27 List of Consistent Compounders
13:22 Example - Asian Paints

Additional Reading/Resources:
β€£ Screener Link: https://www.screener.in/screens/12459...
β€£ Worksheet: https://docs.google.com/spreadsheets/...

#consistentcompounders #multibagger #investingstrategy #marcellus #saurabhmukherjea

Disclaimer: I am not a SEBI registered investment advisor or research analyst. I am not registered with PFRDA or IRDA either. The content posted on this platform is purely for educational purposes and none of it constitutes investing or trading advice. Viewers should do their own research and diligence before investing or acting on the information presented. Some of the links I have posted in the video, the description, the comments and other related resources might be affiliate links

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