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BBS Stock Scorecard — Grade Any Indian Stock in 60 Seconds

Most investors look at one or two ratios and call it research. The BBS Scorecard combines eight key financial metrics across four dimensions — business quality, growth, earnings quality, and valuation — and converts them into a single A+ to D grade so you can instantly see where a stock is strong and where it is hiding weaknesses. Enter the numbers from Screener.in or the company's annual report and get your grade in under a minute.

Return on Capital Employed

Return on Equity

From Screener.in compounded sales growth

Profit after tax compounded growth

Total debt ÷ total equity

Operating cash flow ÷ profit after tax

Current price-to-earnings ratio

Sector / industry peers average PE

What each grade means

A+
85 – 100 ptsExcellent business — high-quality, growing profitably, trading at fair or attractive valuation. Worth deep-diving.
A
70 – 84 ptsGood business with solid fundamentals. One or two metrics may lag — check what is holding the score back before buying.
B
55 – 69 ptsAverage — some strengths but notable gaps in quality, growth, or valuation. Needs further investigation.
C
40 – 54 ptsBelow average. Multiple weak metrics. Could be a turnaround play — but the risk is elevated. Proceed with caution.
D
Below 40 ptsWeak across most parameters. Avoid unless you have a very specific thesis for a structural recovery.

Frequently Asked Questions

What is ROCE and why does it matter?

ROCE — Return on Capital Employed — measures how efficiently a business generates profit from every rupee of capital it uses (equity + debt). A ROCE above 20% consistently signals a high-quality business with a durable competitive advantage. It is one of the first numbers Warren Buffett and Charlie Munger look at.

What is a good ROE for Indian companies?

ROE — Return on Equity — shows how much profit a company earns for its shareholders' capital. For Indian large-caps, an ROE above 18% is considered strong. Be cautious of very high ROE (>40%) driven by heavy debt rather than genuine business efficiency — always check the Debt/Equity ratio alongside.

How do I find the OCF/PAT ratio?

Go to Screener.in, search for the stock, and open the Cash Flow statement. Divide Operating Cash Flow (OCF) by Profit After Tax (PAT) for the same year. A ratio above 0.9 means the company is converting nearly all its reported profit into real cash — a strong sign of earnings quality. A ratio below 0.7 is a red flag.

What PE is fair for Indian large-caps?

There is no single fair PE — it depends on the growth rate and sector. Nifty 50 has historically traded between 18–25x. The more useful comparison is the stock's current PE vs its own 5-year average and vs its direct sector peers. A stock trading at 30x when its sector average is 20x needs to justify the premium with superior growth or returns.

Can I use this scorecard for all sectors?

The scorecard works well for most sectors but has limitations for banks and NBFCs (where Debt/Equity is structurally high and OCF/PAT is less meaningful) and for early-stage companies with negative PAT. For banks, focus on ROE, NIM, and GNPA instead. For commodity businesses, adjust for cycle-average earnings rather than single-year numbers.

Want to learn how to interpret these ratios in depth?

View Fundamental Analysis Course →Read: HDFC Bank Balance Sheet Analysis →