Given the extensive list of financial ratios and metrics available on Screener.in, we can construct a detailed screener for "Turnaround Champs" by focusing on companies that have demonstrated a significant improvement in key financial metrics after a period of underperformance. Below is a detailed screener setup:
### Screener Criteria:
1. **Sales Growth**:
- **Criteria:** `(Sales latest quarter > Sales preceding year quarter) AND (Sales latest quarter > Sales preceding quarter)`
- **Reason:** Companies with consistent quarter-over-quarter and year-over-year sales growth indicate a recovery in demand and revenue.
2. **Operating Profit Margin (OPM)**:
- **Criteria:** `(OPM latest quarter > OPM preceding year quarter) AND (OPM latest quarter > OPM preceding quarter)`
- **Reason:** Improved OPM suggests better cost management and operational efficiency, which are key to a successful turnaround.
3. **Net Profit Growth**:
- **Criteria:** `(Net Profit latest quarter > Net Profit preceding year quarter) AND (Net Profit latest quarter > Net Profit preceding quarter)`
- **Reason:** A significant rise in net profit shows that the turnaround is not just on paper but is resulting in real profitability.
4. **Return on Equity (ROE)**:
- **Criteria:** `Return on equity > 12`
- **Reason:** Consistently high ROE indicates that the company is effectively using its equity base to generate profits.
5. **Debt to Equity Ratio**:
- **Criteria:** `Debt to equity < 1`
- **Reason:** Companies with lower leverage are better positioned to sustain a turnaround and avoid financial distress.
6. **EPS Growth**:
- **Criteria:** `(EPS latest quarter > EPS preceding year quarter) AND (EPS latest quarter > EPS preceding quarter)`
- **Reason:** A strong EPS growth reflects a company's ability to generate higher profits on a per-share basis, which is crucial for a turnaround story.
7. **Cash from Operations**:
- **Criteria:** `(Cash from operations last year > Cash from operations preceding year) AND (Cash from operations last year > 0)`
- **Reason:** Positive and growing cash flow from operations indicates that the company's turnaround is backed by actual cash generation, not just accounting profits.
8. **Piotroski Score**:
- **Criteria:** `Piotroski score > 6`
- **Reason:** The Piotroski Score is a strong indicator of financial health and turnaround potential. A score above 6 suggests good financial strength.
9. **Market Capitalization**:
- **Criteria:** `Market Capitalization > 500`
- **Reason:** Focusing on companies with market capitalizations above ₹500 crores to ensure the turnaround is in companies of reasonable size and stability.
### Steps to Set Up This Screener on Screener.in:
1. **Login to Screener.in:**
- Access your account or create one if you haven't already.
2. **Create a New Screen:**
- Navigate to the "Create New Screen" option.
3. **Add the Above Criteria:**
- Enter the criteria as listed above using the syntax provided:
```plaintext
Sales latest quarter > Sales preceding year quarter AND Sales latest quarter > Sales preceding quarter
OPM latest quarter > OPM preceding year quarter AND OPM latest quarter > OPM preceding quarter
Net Profit latest quarter > Net Profit preceding year quarter AND Net Profit latest quarter > Net Profit preceding quarter
Return on equity > 12
Debt to equity < 1
EPS latest quarter > EPS preceding year quarter AND EPS latest quarter > EPS preceding quarter
Cash from operations last year > Cash from operations preceding year AND Cash from operations last year > 0
Piotroski score > 6
Market Capitalization > 500
```
4. **Save the Screener:**
- Name your screener, for example, "Turnaround Champs Screener."
5. **Run the Screener:**
- Analyze the results and refine the criteria as needed.
### Additional Tips:
- **Back-testing**: After setting up the screener, you may want to back-test the results to see if the companies identified in the past have indeed shown strong performance following a turnaround.
- **Manual Analysis**: Although the screener will filter out companies based on your criteria, a manual review of the shortlisted companies is advisable to validate the turnaround story.
This setup will help you identify companies that have recently turned around from a weak phase and are showing signs of sustained recovery.