Last Updated on: 15 May 2021

CANSLIM-esque
E iciently managed growing companies experiencing
positive momentum, screened using CANSLIM methodology

CAGR
Medium Volatility
29.15% Since: March 6, 2017

smallcase rationale
CANSLIM is an investment model of speci ic criterion set out by William O’Neil, an
American stock broker and investor.

CANSLIM model revolves around seven criteria - current earnings, annual

earnings, the new factor, supply and demand, leader vs laggard, institutional
ownership and market direction. These criteria have been modi ied for the
Indian stock markets

This smallcase consists of companies that have recorded greater than 10%
earnings per share growth over the previous 2 years and also have high return
on equity. High EPS growth in tandem with high ROE indicates that the
company is making money at a fast pace while managing capital e iciently

Future expectations regarding earnings growth have also been taken into
account

Additionally, only stocks that have been showing strong upward price
movement and have performed better than 75% of all stocks over the previous
1 year are included

Created by SEBI Reg. Number Subscription Type

Windmill Capital INH200007645 Free

Invest in this smallcase here

Methodology

De ining the universe

All publicly traded companies on the National Stock Exchange of
India, covering 90% market capitalization, are included in the
universe

Research
The Windmill Capital team studies research papers and
documented investment philosophies and strategies. Ideas and
strategies are then adapted for the Indian markets, with which a
criteria for stock screening is inalized

Stock Screening
Proprietary liquidity ilters are applied to remove ill-liquid stocks
from the universe

A special check is applied to remove stocks, where a signi icant

part of the promoter holdings are pledged, to de ine the
investable universe

The model criteria identi ied in the previous step is applied on the
investable universe to select qualifying stocks

Weighting
This list of selected stocks is equal weighted

Historical back-testing
All model based smallcases are checked for historical
outperformance to ensure that only consistently outperforming
models are selected

Rebalance
This smallcase has a quarterly rebalance schedule. Once every
quarter, the research team reviews this smallcase and realign the
weights with the selected asset allocation strategy for the next
quarter.

Ratios

Ratio smallcase Equity Mid & Small Cap

PE Ratio 39.48 29.31

PB Ratio 8.62 3.03

Sharpe Ratio 0.96 1.12

Dividend Yield (%) 0.66 1.70

Important Fields
Inception Date Launch Date Marketcap Category
March 3, 2014 March 6, 2017 Equity Mid & Small Cap

Review Frequency Last Reviewed Next Review On

Quarterly March 17, 2021 June 17, 2021

Market Cap Distribution

Large Cap Mid Cap Small Cap

11.11% 44.44% 44.44%

Past Performance Comparison with Equity Mid & Small Cap

CANSLIM-esque with Equity Mid & Small Cap

Launch

600

400

200

2015 2016 2017 2018 2019 2020 2021

Backtested Live

How to invest

De initions and Disclosures

CAGR

CAGR (compounded annual growth rate) is a useful measure of growth or

performance of a portfolio. Every year returns generated by a portfolio is different.
Let's say if a portfolio is live for 3 years and returns generated by the portfolio are
5%, 15% & -7%, respectively in the irst, second and third year. Then we calculate
CAGR as a return number that would give the same terminal investment value at
the end of three years, as we get when the portfolio gains by 5% & 15% in the irst
two years and drops by 7% in the third year. The CAGR in this case would be
3.94%. This means that you will always end up with the same investment value at
the end of the third year, if your portfolio gains by 3.94% every year or 5%, 15% and
-7%, respectively in the irst, second and third year.
In simple words, it indicates the annual return generated by the smallcase from
the date of launch. In case the smallcase is live for less than a year, CAGR
represents the absolute return generated by the smallcase from the date of
launch. Only live data is considered to calculate the CAGR number.
P.S. - CAGR calculation methodology got updated from 23rd Mar’21 on all
smallcase Platforms. Please read this blog for understanding the changes in detail

Volatility Label

Changing stock prices on a daily basis results in luctuating investment value of

your portfolio. If the daily change in the investment value of a portfolio is too
drastic, it means prices of stocks in the portfolio are changing very rapidly. Such
portfolios have High Volatility. Every smallcase is categorized into one of the three
volatility buckets - High Volatility, Medium Volatility and Low Volatility. This is done
by comparing smallcase volatility vs broader market volatility.
Investing in High Volatility smallcases means that change in your investment
values can be very sudden and drastic. Following table represents the logic
followed to categorize smallcases into various volatility buckets

Volatility Ratio (VR) Label

VR >= 1.3 High Volatility

0.8 <=VR< 1.3 Medium Volatility

VR < 0.8 Low Volatility

Volatility Ratio = Average annual rolling standard deviation of the smallcase

divided by the average annual rolling standard deviation of the Nifty 50 Index,
since launch of the smallcase.

Segment

Stocks/ETFs belonging to a smallcase are categorized under different segments.

Weightage of a segment is calculated as sum of weights of all stocks belonging to
that segment. Suppose 4 stocks, with each having a weight of 10%, belong to the
Food Products segment. Then the weight of the Food Product segment in the
smallcase will be 40% (4*10)

Review

Rebalancing is the process of periodically reviewing and updating the

constituents of a smallcase. This is done to ensure that stocks & weights in the
smallcase continue to re lect the underlying theme or strategy

Market Cap Categorization of Stocks

All the stocks listed on NSE(National Stock Exchange) are arranged in decreasing
order of Market Cap, so that the stock with the largest market cap gets 1st Rank.
Stocks ranked equal to or below 100 are categorized as Large Cap. Stocks ranked
below or equal to 250, but ranked above 100 are categorized as Mid Cap stocks.
Stocks ranked above 250 are categorized as smallcap

Market Cap Categorization of smallcases

If the sum of weights of constituent large cap stocks is greater than 50%,
then smallcase is categorized as Largecap

If the sum of weights of constituent mid cap stocks is greater than 50%, then
smallcase is categorized as Midcap

If the sum of weights of constituent small cap stocks is greater than 50%,
then smallcase is categorized as Smallcap

If the sum of weights of constituent large cap stocks is greater than 30%,
sum of weights of mid cap stocks are greater than 30%, and sum of weights
of large cap and mid cap stocks are greater than 80%, then smallcase is
categorized as Large & Midcap

If the sum of weights of constituent small cap stocks is greater than 30%,
sum of weights of mid cap stocks are greater than 30%, and sum of weights
of small cap and mid cap stocks are greater than 80%, then smallcase is
categorized as Mid & Smallcap

If none of the above conditions are met, then smallcase is categorized as

Multicap

Marketcap category of a smallcase might be different from the above

mentioned, if the creator/manager of the smallcase speci ically de ines a
particular category

General Investment Disclosure

The content and data available in this document and related material, including
but not limited to index value, return numbers and rationale are for information
and illustration purposes only. Charts and performance numbers may include
backtested/simulated results calculated via a standard methodology and do not
include the impact of transaction fee and other related costs. Past performance
does not guarantee future returns.
All information present in this document and related material is to help investors
in their decision making process and shall not be considered as a
recommendation or solicitation of an investment or investment strategy. Investors
are responsible for their investment decisions and are responsible to validate all
the information used to make the investment decision. Investor should understand
that his/her investment decision is based on personal investment needs and risk
tolerance, and information available in this document and related material is one
among many other things that should be considered while making an investment
decision.
Stock and ETF investments are subject to market risks, read all related documents
carefully. Investors should consult their inancial advisors if in doubt about
whether the product is suitable for them.

Windmill Capital Disclosures

Windmill Capital Private Limited (hereinafter referred to as “the Company”) is a

SEBI registered Research Analyst having registration number - INH200007645
under SEBI (Research Analyst) Regulations, 2014.The registered address of the
company is 51, 3rd Floor, Le ParcRichmonde, Richmond Road, Shanthala Nagar,
Richmond Town, Bangalore – 560025. The Company is involved in research
activities in Indian capital markets. 
 
The Company has neither been suspended nor debarred from doing business by
any Stock Exchange / SEBI or any other authorities; nor has its certi icate of
registration been cancelled by SEBI at any point of time.
 
The Company is not engaged in merchant banking, investment banking or any
brokerage services.
 
Unless otherwise stated, the percentage returns displayed on the website or any
other marketing materials are Absolute Returns.
 
Reports or research material prepared by the company are not to be construed as
an offer to buy /sell or the solicitation of an offer to buy / sell any security in any
jurisdiction where such offer or solicitation would be illegal. Reports or research
material prepared by the company do not constitute a personal recommendation
or take into account the particular investment objectives, inancial situations, risk
pro ile and needs of individual clients.
 
The content and data available in the material prepared by the company and on
the website of the company, including but not limited to index value, return
numbers and rationale are for information and illustration purposes only. Charts
and performance numbers might include back tested/simulated results calculated
via a standard methodology and do not include the impact of transaction fee and
other related costs. Data used for calculation of historical returns and other
information is provided by exchange approved third party data vendors and has
neither been audited nor validated by the Company.

"Back-testing" is the application of a quantitative model to historical market data

to generate hypothetical performance during a prior period. Use of back-tested
data has inherent limitations including the following:

The results do not re lect the results of actual trading or the effect of material
economic and market conditions on the decision-making process, but were
achieved by means of retrospective application, which may have been
designed with the bene it of hindsight

Calculation of such back-tested performance data is based on assumptions

integral to the model which may or may not be testable and are therefore
subject to losses.

Actual performance may differ signi icantly from back-tested performance.

Back-tested results are not adjusted to re lect the reinvestment of dividends
and other income and, except where otherwise indicated, do not include the
effect of back-tested transaction costs.

Back-tested returns do not represent actual returns and should not be

interpreted as an indication of such.
 
Information present in the material prepared by the company and on the website
of the company shall not be considered as a recommendation or solicitation of an
investment or investment strategy. Investors are responsible for their investment
decisions and are responsible to validate all the information used to make the
investment decision. Investor should understand that his/her investment decision
is based on personal investment needs and risk tolerance, and information present
in the material prepared by the company and on the website of the company is
one among many other things that should be considered while making an
investment decision. 
 
Past performance does not guarantee future returns and performances of the
portfolios created by the company are subject to market risk. Investments in
securities market are subject to market risks and investors should read all the
related documents carefully before investing. Derivatives are sophisticated
investment products. The investor is requested to take into consideration all the
risk factors before actually trading in derivative contracts.
 
While we endeavour to update the information / material on various products and
reports created by us, on a reasonable basis, there may be regulatory, compliance
or other reasons that prevent us from doing so.
 
We and our associates, o icers, directors, and employees, Research Analyst
(including relatives) worldwide may: (a) from time to time, have long or short
positions in, and buy or sell the securities thereof, of company (ies) forming part of
the products or reports created by the company or (b) may have other
potential/material con lict of interest with respect to any company(ies) in various
products or reports created by the company.Any such positions of con lict of
interest will be appropriately disclosed and dealt with in accordance with
applicable law.
 
The Company does not provide any promise or assurance of favourable view for a
particular industry or sector or business group in any manner. The investor is
requested to take into consideration all the risk factors including their inancial
condition, suitability to risk return pro ile and take professional advice before
investing.
 
The analysts for various products or reports created by the company certify that all
of the information /material therein accurately re lect his or her personal views
about the subject company or companies and its or their securities, and no part of
his or her compensation was, is or will be, directly or indirectly related to
company(ies) in various products or reports created by the company. No part of
this material may be duplicated in any form and/or redistributed without the prior
written consent of the Company.
 
Details of our Associates – Smallcase Technologies Private Limited (Holding
Company) bearing CIN: U74900KA2015PTC081722 with its registered o ice at No
51, 3rd Floor, Le ParcRichmonde Richmond Road, Shantala Nagar Bangalore, 560
025.
 
Research Analyst Disclosures.

Research Analyst has served as an o icer, director or employee of subject

company(ies): No

We or our associates may have received compensation from the subject

company(ies) in the past 12 months.

We or our associates have managed or co-managed public offering of

securities for the subject company(ies) in the past 12 months: No

We or our associates have not received compensation for investment banking

or merchant banking or brokerage services from the subject company(ies) in
the past 12 months.

We or our associates may have received any compensation for products or

services other than investment banking or merchant banking or brokerage
services from the subject company(ies) in the past 12 months.

We or our associates may have received compensation or other bene its from
the subject company(ies) or third party in connection with the products or
reports created by the company. Our associates may have inancial interest in
the subject company(ies).

Research Analyst or his/her relative's inancial interest in the subject

company(ies): No

The company has inancial interest in the subject company(ies) at the end of
the month immediately preceding the date of sharing of products or reports
created by the company: No

Nature of inancial interest is holding of equity shares or derivatives of the

subject company - Our associates do not have actual/bene icial ownership of
1% or more securities of the subject company(ies) at the end of the month
immediately preceding the date of sharing of products or reports created by
the company.

The subject companies may have been a client during the twelve months
preceding the development and/or publication of products or reports created
by the company and has received any compensation for services rendered to
such subject company.

Research Analyst or his/her relatives has actual/bene icial ownership of 1% or

more securities of the subject company(ies) at the end of the month
immediately preceding the date of sharing of products or reports created by
the company.: No

The Company has actual/bene icial ownership of 1% or more securities of the

subject company(ies) at the end of the month immediately preceding the
date of sharing of products or reports created by the company: No

The employees of the Company are permitted to transact in Exchange Traded

Funds (ETF’s) without any restrictions upto a speci ied limit in accordance
with Company Policy. Intra-day transactions in ETF’s are however, not
permitted.
 
Registered o ice of Windmill Capital Private Limited-

#51, 3rd Floor, Le ParcRichmonde,

Richmond Road, Shanthala Nagar, Richmond Town,
Bangalore – 560025.
 
SEBI Research Analyst INH200007645
Support - Contact us at [email protected]  for any queries and assistance

Please visit Windmill Capital for detailed disclosures, terms and conditions.