Stocks that topped value & growth metrics

BNP Paribas has screened stocks such as ‘quality growth’ and ‘quality value’. It has considered parameters such as long-term return on equity and free cash flow performance for 5-year and 10-year period; actual and potential revenue and earnings growth; price-to-earnings and price-to-book relative to history and up or downside to consensus price targets.

The brokerage introduced the screens in June. Since, then the growth portfolio (market cap weighted) has outperformed the market by 400 basis points (bps), while the value portfolio has underperformed by 300 bps. ‘Value as a trade’ hasn’t done that well this year. “Our quality approach is best suited to screen for long-term performers.

Indeed, most growth and even value stocks in our lists have outperformed the market over periods greater than two years,” says Abhiram Eleswarapu, head of India equity research, BNP Paribas.

Here are the top 10 companies from the large-cap, mid-cap and small-cap space which made the cut: