Best viewed on a desktop. This site isn't designed for mobile yet.

Magic Formula India

Joel Greenblatt's Magic Formula, for Indian stocks

Data as of Q4 2026 · Next update Q1 2027

Good companies at bargain prices.

India's ~500 largest companies, ranked on return on capital and earnings yield. Pick the top 30 or 50, minus any sectors you'd skip.

Stocks
Exclude sectors

Top 30

30 companies · ranked from 401 eligible companies · data as of Q4 2026 · How is this ranked?

Complete Rankings & Data
  • 1
    TCS₹7.50 L Cr
    IT Services

    India's largest IT services company

    EY 9.9%ROC 74.0%
  • 2
    Hero Motocorp₹97,450 Cr
    Automobiles

    India's largest two-wheeler maker (Splendor)

    EY 7.6%ROC 184.3%
  • 3
    Castrol India₹19,395 Cr
    Oil & Gas

    Engine oils and lubricants

    EY 7.9%ROC 76.0%
  • 4
    Infosys₹4.05 L Cr
    IT Services

    IT services and consulting

    EY 11.0%ROC 42.3%
  • 5
    ITC₹3.20 L Cr
    FMCG

    Cigarettes, plus packaged foods, paper and agri-business

    EY 8.4%ROC 59.6%
  • 6
    M & M₹3.42 L Cr
    Automobiles

    SUVs and India's largest tractor maker

    Consolidated numbers include M&M Finance: check standalone

    EY 8.5%ROC 53.3%
  • 7
    Sun TV Network₹24,212 Cr
    Media

    South Indian TV channels and SunNXT streaming

    EY 8.9%ROC 41.0%
  • 8
    Engineers India₹16,246 Cr
    Engineering & Construction

    Government-owned engineering consultant for refineries and petrochemicals

    EY 6.9%ROC 65.2%
  • 9
    Hindustan Zinc₹2.24 L Cr
    Metals & MiningCyclical

    Zinc, lead and silver miner (Vedanta group)

    EY 6.5%ROC 92.6%
  • 10
    NMDC₹62,098 Cr
    Metals & MiningCyclical

    Government-owned iron ore miner

    EY 16.6%ROC 32.4%
  • 11
    Ashok Leyland₹85,097 Cr
    Automobiles

    Trucks and buses (Hinduja group)

    Consolidated numbers include Hinduja Leyland Finance: check standalone

    EY 7.6%ROC 49.5%
  • 12
    Welspun Enterp₹10,116 Cr
    Engineering & Construction

    Road and water infrastructure projects

    EY 6.6%ROC 68.0%
  • 13
    Larsen & Toubro₹4.99 L Cr
    Engineering & Construction

    Engineering, construction and IT group

    Consolidated numbers include L&T Finance: check standalone

    EY 6.4%ROC 88.0%
  • 14
    B P C L₹1.24 L Cr
    Oil & GasCyclical

    Government-owned oil refiner and fuel retailer

    EY 14.9%ROC 30.6%
  • 15
    Zensar Tech.₹10,049 Cr
    IT Services

    Mid-size IT services (RPG group)

    EY 11.6%ROC 31.5%
  • 16
    LTM₹1.16 L Cr
    IT Services

    IT services (LTIMindtree, L&T group)

    EY 6.8%ROC 48.4%
  • 17
    Lupin₹88,828 Cr
    Pharmaceuticals

    Generic and branded medicines

    Current EBIT 2.9x its 5-yr average: growth or temporary spike?

    EY 9.4%ROC 32.2%
  • 18
    International Gemological Instit₹13,253 Cr
    Business Services

    Grading and certification of diamonds and jewellery

    No 5-yr EBIT history (listed / demerged recently)

    EY 6.4%ROC 55.2%
  • 19
    Godfrey Phillips₹27,555 Cr
    FMCG

    Cigarettes (Marlboro licensee, Four Square)

    EY 6.3%ROC 49.6%
  • 20
    Wipro₹1.57 L Cr
    IT Services

    IT services

    EY 11.4%ROC 28.6%
  • 21
    Oil India₹72,894 Cr
    Oil & GasCyclical

    Government-owned crude oil and gas producer

    EY 10.9%ROC 28.4%
  • 22
    Bajaj Auto₹2.65 L Cr
    Automobiles

    Motorcycles and three-wheelers, large export business

    Consolidated numbers include Bajaj Auto Credit: check standalone

    EY 5.9%ROC 61.0%
  • 23
    Escorts Kubota₹31,001 Cr
    Capital Goods

    Tractors and construction equipment

    EY 6.2%ROC 44.9%
  • 24
    Natl. Aluminium₹57,380 Cr
    Metals & MiningCyclical

    Government-owned aluminium and alumina producer (Nalco)

    EY 9.4%ROC 28.1%
  • 25
    Maruti Suzuki₹3.52 L Cr
    Automobiles

    India's largest car maker

    EY 5.4%ROC 68.4%
  • 26
    I O C L₹1.78 L Cr
    Oil & GasCyclical

    Government-owned oil refiner and fuel retailer, India's largest

    EY 14.2%ROC 25.6%
  • 27
    P & G Hygiene₹22,266 Cr
    FMCG

    Whisper sanitary pads and Vicks

    EY 5.0%ROC 231.8%
  • 28
    Emami₹16,028 Cr
    FMCG

    Personal care and ayurvedic brands (Navratna, BoroPlus, Zandu)

    EY 5.6%ROC 50.0%
  • 29
    C P C L₹22,807 Cr
    Oil & GasCyclical

    Chennai oil refiner, IOCL subsidiary

    Latest qtr profit +2,672%

    EY 13.7%ROC 24.7%
  • 30
    Glenmark Pharma.₹61,749 Cr
    Pharmaceuticals

    Generic and branded medicines, strong in respiratory and dermatology

    Current EBIT 2.1x its 5-yr average: growth or temporary spike?

    EY 7.6%ROC 28.2%

How it works

Two numbers. One ranking.

How the ranking works

Each company is ranked on two things: how cheap it is (earnings yield) and how good the business is (return on capital).

EY rank+ROC rank=Score · lowest first

Only India's ~500 largest companies are considered.

What’s adjusted or left out

Cyclicals (metals, mining, oil, fertilisers, solar) are judged on the lower of their current and 5-year average earnings, so a boom year doesn't make them look cheap.

Excluded

  • Banks & other financials
  • Utilities
  • Holding companies
  • REITs / InvITs
  • One-off profits

Data & disclaimer

Source
Screener.in
As of
October 2026
Next update
Q1 2027

For education only — not investment advice or a recommendation to buy or sell. We aren't SEBI-registered. Do your own research before investing.

Putting it to work

A system only works if you stick with it.

The list is the easy part. The results come from following the process — especially in the years it lags.

  1. 01

    Build a portfolio of 20–30 stocks

    Pick from the top of the list. Spreading across many names lets the system's edge show instead of one company's luck.

  2. 02

    Buy at once or in tranches

    Buy all 30 in one go, 12–15 every six months, or 5–7 every quarter until the portfolio is built.

  3. 03

    Hold each position about 12 months

    Listed equity held over 12 months qualifies for long-term capital gains tax in India.

  4. 04

    Rebalance and repeat — for years

    Replace sold positions with fresh picks. The formula can lag for stretches; patience is the hard part.