How every score is computed.
The Buoyant 100-point quality template, the red-flag rules, the rating bands, the technical rules and the Buoyant Score, with the exact data mapping from the statements feed.
Final score → rating
| Rating | Score | Action |
|---|---|---|
| A+ | ≥ 85 | Top conviction: initiate coverage. |
| A | 75–84 | Deep dive recommended. |
| B+ | 65–74 | Good but needs deeper work. |
| B | 55–64 | Watchlist only. |
| C | 45–54 | Weak, cyclical or uncertain. |
| D | < 45 | Avoid unless special situation. |
Final = max(0, base + penalty); penalty capped at −20. Confidence = share of the eleven required series present (High ≥ 85%, Medium ≥ 60%).
Seven components, default weights
| Component | Weight |
|---|---|
| Business quality | 20 |
| Earnings growth | 15 |
| Balance sheet / cash flow | 10 |
| Valuation | 25 |
| Earnings revisions | 10 |
| Price momentum | 10 |
| Technical trend | 10 |
Quality and balance sheet come from the Quality categories; growth from 1Y and 3Y CAGRs; valuation from P/E and EV/EBITDA against peers and own history, ROE-adjusted P/B and DCF upside when a model exists; revisions from broker EPS changes or, failing that, latest-quarter growth; momentum from 3M/6M/12M and relative returns; trend from the technical score. Missing components are dropped and the rest renormalised. Weights are editable per template.
Score 0–100 → Bullish · Neutral · Bearish
- Start at 50; ±10 above/below the 200 DMA; ±6 for the 50 DMA.
- ±8 for a golden or death cross in the last 60 sessions.
- RSI 14: 50–70 +4, < 30 +2, > 70 −4, 30–50 −2.
- ±5 for MACD histogram above/below zero.
- ±7 for a six-month return above +15% or below −15%; ±5 for beating or lagging the Nifty 500 by 5 pp over six months.
- +3 within 5% of the 52-week high, −3 more than 30% below it; +4 for a 60-session breakout on 1.2× volume.
- Bullish ≥ 62, Bearish ≤ 40. Trend: Uptrend when close > 50 DMA > 200 DMA with a rising 200 DMA; Downtrend the mirror; else Sideways.
Eight categories · 100 points
| Revenue growth consistency | 5 | CAGR > 18% with ≥ 70% positive years = 5 · 12–18% = 4 · 8–12% = 3 · positive = 2 · flat = 1 |
| EBITDA growth consistency | 4 | EBITDA CAGR > revenue CAGR with margin expansion = 4 · tracks revenue = 3 · positive = 2 · softening = 1 |
| PAT growth consistency | 4 | PAT CAGR > revenue CAGR with a normal tax rate = 4 · tracks EBITDA = 3 · positive = 2 |
| EPS growth quality | 3 | EPS CAGR within 2 pp of PAT CAGR = 3 · ≥ 70% of PAT CAGR = 2 · positive = 1 |
| 5Y PAT CAGR | 2 | > 18% = 2 · ≥ 10% = 1 |
| Adjusted Net Worth CAGR (5Y) | 2 | Within 5 pp of PAT CAGR and > 10% = 2 · > 5% = 1 |
| EBITDA margin level · peer-relative | 4 | vs peer median: ≥ 1.25× = 4 · ≥ 1.05× = 3 · ≥ 0.95× = 2 · ≥ 0.7× = 1 (absolute bands when no peers) |
| EBITDA margin trend | 3 | expanding = 3 · stable = 2 · volatile = 1 · compressing = 0 |
| PAT margin level · peer-relative | 3 | vs peer median: ≥ 1.25× = 3 · ≥ 1.05× = 2 · ≥ 0.9× = 1 |
| PAT margin trend | 2 | improving = 2 · stable = 1 |
| Tax rate quality | 1 | 18–32% = 1 |
| Depreciation vs peers · peer-relative | 2 | within 20% of peer median = 2 · within 50% = 1 |
| Pre-tax ROCE (excl cash) | 5 | > 30% = 5 · > 24% = 4 · > 18% = 3 · > 12% = 2 · else 1 |
| Post-tax ROCE (excl cash) | 4 | > 22% = 4 · > 18% = 3 · > 14% = 2 · > 10% = 1 |
| ROE | 4 | > 22% = 4 · > 18% = 3 · > 14% = 2 · > 10% = 1 |
| ROCE stability | 3 | all years > 18% and stable = 3 · high but cyclical = 2 · improving = 1 |
| OCF / Capital Employed | 3 | ≥ 18% = 3 · ≥ 10% = 2 · positive = 1 |
| ROCE incl vs excl cash | 1 | cash does not flatter returns = 1 |
| OCF positivity & consistency | 4 | positive every year = 4 · ≥ 80% = 3 · ≥ 60% = 2 · ≥ 40% = 1 |
| Pre-tax OCF / EBITDA | 5 | 5Y average > 90% = 5 · ≥ 75% = 4 · ≥ 60% = 3 · ≥ 40% = 2 · positive = 1 |
| OCF / PAT conversion | 3 | > 100% = 3 · ≥ 80% = 2 · ≥ 60% = 1 |
| Working capital quality | 2 | receivables grow ≤ revenue = 2 · modestly above = 1 |
| Cash flow volatility | 1 | coefficient of variation < 0.5 = 1 |
| Net Debt / Equity | 3 | net cash or ≤ 0.3× = 3 · ≤ 0.7× = 2 · ≤ 1× = 1 |
| Net Debt / EBITDA | 3 | net cash or ≤ 1× = 3 · ≤ 2× = 2 · ≤ 3× = 1 |
| Borrowing cost | 1 | ≤ 10% = 1 |
| Borrowings vs gross block | 2 | borrowings track asset growth = 2 · moderately above = 1 |
| Balance sheet trend | 1 | leverage stable or improving = 1 |
| Gross block growth quality | 2 | asset growth converting to revenue and PAT = 2 · visible = 1 |
| Internal accrual funding | 2 | borrowings < half of asset growth = 2 · below asset growth = 1 |
| ROE × retention vs NW CAGR | 2 | ROE × retention within 5 pp of NW CAGR = 2 · within 15 pp = 1 |
| PAT CAGR vs NW CAGR alignment | 2 | both > 10% and within 5 pp = 2 · one strong, gap < 15 pp = 1 |
| One-offs % of PAT | 3 | < 5% = 3 · < 10% = 2 · < 20% = 1 |
| Write-offs quality | 1 | write-offs < 5% of cumulative PAT = 1 |
| Exceptional gains quality | 1 | exceptional gains < 10% of cumulative PAT = 1 |
| Net worth reconciliation | 2 | ROE × retention within 3 pp of NW CAGR = 2 · within 10 pp = 1 |
| KMP remuneration reasonableness | 2 | KMP pay < 5% of PAT = 2 · < 10% = 1 (not in the feed: unavailable) |
| KMP remuneration growth vs PAT growth | 1 | KMP pay growth ≤ PAT growth = 1 (unavailable) |
| Contingent liabilities % of net worth | 2 | < 10% of net worth = 2 · < 25% = 1 (unavailable) |
Banks, lenders and insurers are scored on their own templates
The corporate template’s leverage, cash-conversion and receivables tests are meaningless for a balance-sheet business, so banking-format statements take the bank lens, NBFCs, housing-finance and microfinance companies the lender lens, and insurers the insurer lens. Same 100-point base, same rating bands, same −20 red-flag cap, but the scores are not comparable across lenses: the ranking page shows one lens at a time. Metrics the feed does not carry (NBFC gross NPA and credit cost; insurers’ embedded value, VNB margin, solvency and combined ratio) score 0, say so in the explanation and lower confidence rather than being estimated.
| Growth Total income, net profit and advances CAGR over the window, and whether EPS kept pace with PAT (dilution). | 25 |
| Returns ROE and ROA levels in the latest year and how low ROE fell across the window. | 30 |
| Efficiency & margins Cost-to-income and net interest margin. | 15 |
| Capital & leverage Assets over equity, net-worth growth against profits, share-count discipline. | 15 |
| Asset quality Gross NPA level and credit cost (provisions over average advances). | 15 |
Red flags: two-year PAT decline −5 · ROE below 8% −4 · gross NPA above 5% −5 (banks) · assets over 20× equity or debt over 8× equity −4 · credit cost doubling −3 (banks) · dilution over 10% −3 · interest cover below 1.1× −4 (lenders).
| Growth Total income, net profit and balance-sheet CAGR over the window, and whether EPS kept pace with PAT (dilution). | 25 |
| Returns ROE and ROA levels in the latest year and how low ROE fell across the window. | 30 |
| Efficiency & margins Cost-to-income (operating expenses net of interest) and the spread earned on assets. | 15 |
| Capital & leverage Debt over equity, net-worth growth against profits, share-count discipline. | 15 |
| Asset quality Gross NPA and credit cost: not disclosed for NBFCs in the statements feed, so scored 0 and flagged as unavailable. | 15 |
Red flags: two-year PAT decline −5 · ROE below 8% −4 · gross NPA above 5% −5 (banks) · assets over 20× equity or debt over 8× equity −4 · credit cost doubling −3 (banks) · dilution over 10% −3 · interest cover below 1.1× −4 (lenders).
| Growth Net profit CAGR, growth in policyholders’ funds (or assets) and whether EPS kept pace with PAT. | 30 |
| Returns ROE level in the latest year and how low it fell across the window. | 30 |
| Profitability Share of income that is technical (underwriting) result rather than investment income, and pre-tax profit growth consistency. | 20 |
| Capital & payout Net-worth CAGR, share-count discipline and a sane dividend payout. | 20 |
Red flags: two-year PAT decline −5 · ROE below 8% −4 · underwriting loss −4 · dilution over 10% −3 · net worth decline −3.
Thirteen rules, capped at −20
| Rule | Severity | Penalty |
|---|---|---|
| Receivables growth > 2× revenue growth | High | -5 |
| Receivables growth above revenue growth | Medium | -4 |
| OCF / PAT < 50% for 2+ years | High | -5 |
| Net debt / EBITDA > 3× | High | -5 |
| Net debt / equity > 1.5× | High | -4 |
| One-offs > 25% of PAT | High | -4 |
| Contingent liabilities > 50% of net worth | High | -5 |
| KMP pay growth > 2× PAT growth | Medium | -3 |
| Depreciation materially below peers | Medium | -3 |
| PAT CAGR high but net-worth CAGR weak | High | -4 |
| ROCE declining three consecutive years | High | -4 |
| Borrowings rising, gross block not | Medium | -3 |
| Borrowings rising, revenue and PAT flat | Medium | -3 |
Statements feed → template inputs
- Revenue = Sales · EBITDA = Operating Profit · PAT = Net Profit · OCF = Cash from Operating Activity · EPS = Adjusted EPS.
- Pre-tax ROCE excl cash = (PBT + interest) ÷ (net worth + debt − cash − short-term investments); post-tax = × (1 − tax rate).
- Pre-tax OCF / EBITDA = (OCF + taxes paid) ÷ operating profit. Borrowing cost = interest ÷ average debt. Depreciation rate = D&A ÷ net block (gross block is not disclosed).
- One-offs = fiscal-year sum of quarterly exceptional items. Peer medians by industry when it has five or more scored names, else by sector.
- Not in the feed: KMP remuneration, contingent liabilities, promoter pledge history. Those metrics score as unavailable and reduce confidence; pledge is filterable from the screener fields where Tijori reports it.
- Banks and lenders report in bank format (no EBITDA, no capital employed) and are not scored by the template; they carry technicals, ownership and lender ratios (NIM, CASA, GNPA) and use the P/B and residual-income lens in the valuation studio.