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Published 7 April 2026 · 7 min read · Finmagine Research Team
📚 Investment Checklists — Learning Hub
Learn how three legendary investment frameworks are automatically scored against any NSE stock's live data — and how to use the results
After reading this guide you will be able to:
- Understand which investor archetype each of the three frameworks is designed for
- Read the CAN SLIM checklist's 10 criteria and understand each threshold
- Read the Quality + Value checklist's 9 criteria and their Buffett-style logic
- Read the Dividend Growth checklist's 6 criteria for income-oriented investing
- Use the pass rate as a framework fit indicator — not a buy/sell signal
- Know which framework to weight more for your own investment style
What does a 40% CAN SLIM score mean?
It means the stock passed 4 of the 10 CAN SLIM criteria. It does not mean "do not buy" — it means the stock does not currently fit the CAN SLIM momentum-growth profile. A long-term fundamental investor may not care about CAN SLIM at all.
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Which framework suits a long-term Buffett-style investor?
Quality + Value. It checks for durable profitability (ROE ≥15%, ROCE ≥15%, OPM ≥15%), earnings growth, low leverage (D/E ≤0.5, Interest Coverage ≥3x), clean governance (Pledge ≤5%), and adequate size (MCap ≥₹500Cr). Inspired by Buffett-style quality compounders.
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What is the source of CAN SLIM methodology?
Inspired by William J. O'Neil's CAN SLIM® framework from "How to Make Money in Stocks". Adapted for Indian markets using available data — some original criteria (e.g. institutional sponsorship, new product) cannot be automated and are replaced with available financial metrics.
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Why does Dividend Growth only have 6 criteria?
Dividend Growth investing is a simpler, stability-focused framework. It focuses on the essentials for sustainable dividends: promoter conviction (holding ≥40%), governance (pledge ≤5%), earnings growth, return quality (ROE ≥12%), low debt (D/E ≤1.0), and scale (MCap ≥₹2,000Cr). Fewer criteria = higher conviction per criterion.
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Can a stock score differently across frameworks at the same time?
Yes — and this is expected. A stock can score 40% on CAN SLIM (failing on growth and price momentum) while scoring 67% on Dividend Growth (passing on stability and governance). Different frameworks measure different things. The same stock is a poor CAN SLIM pick and a reasonable dividend candidate simultaneously.
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What does "Price vs 52W High ≥ -15%" mean in CAN SLIM?
CAN SLIM favours stocks near their 52-week high — O'Neil's research showed breakouts happen from near-high consolidation, not from bottoms. The -15% threshold means the stock should be within 15% of its annual high. A stock down 20%+ from its high has lost momentum and fails this criterion.
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Is the checklist score a buy/sell recommendation?
No. It is a framework fit score — how well the stock's current financials align with each investment philosophy. It is auto-generated from data and does not constitute investment advice. A high score means strong framework alignment, not that the stock will outperform.
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Why does Quality + Value use D/E ≤ 0.5 while CAN SLIM uses D/E ≤ 1.0?
Quality + Value is stricter on leverage because Buffett-style investing seeks businesses that compound without needing debt. CAN SLIM is a momentum framework where some leverage is acceptable if growth is strong. Lower D/E threshold = higher quality standard on the balance sheet.
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1. What the Checklists Tab Does
Three frameworks, auto-scored — CAN SLIM Style 40%, Quality + Value 56%, Dividend Growth 67% for Reliance Industries
The Checklists sub-tab takes three well-known investment frameworks and automatically scores any NSE stock against them using live financial data. No manual calculation needed — every criterion is checked against the company's actual numbers and marked pass or fail.
📈 CAN SLIM Style 40% 4/10
🏆 Quality + Value 56% 5/9
💰 Dividend Growth 67% 4/6
Each chip shows a percentage pass rate and the count of criteria passed. The higher the score, the better the stock fits that particular investment philosophy.
A low score is information, not a rejection. A 40% CAN SLIM score tells you this stock does not fit the momentum-growth profile right now. It says nothing about whether it is a good long-term investment. Always match the framework to your investment style before interpreting the score.
2. CAN SLIM Style — Momentum Growth Framework
CAN SLIM Style — 4 of 10 criteria passed. Passes: OPM, Promoter Holding, MCap, D/E. Fails: both profit CAGRs, ROE, ROCE, Price vs 52W High, Price CAGR 1Y.
Inspired by William J. O'Neil's CAN SLIM® methodology, adapted for Indian markets using available financial data. CAN SLIM was designed to identify high-growth stocks setting up for price breakouts — it is a framework for growth-momentum investors, not value or income investors.
The 10 Criteria
| Criterion | Threshold | What It Tests |
|---|---|---|
| Profit Growth 3Y CAGR | ≥ 15% | Recent earnings acceleration — the "C" in CAN SLIM (Current Earnings) |
| Profit Growth 5Y CAGR | ≥ 12% | Sustained earnings growth track record — the "A" (Annual Earnings) |
| Return on Equity (ROE) | ≥ 17% | Management effectiveness at generating returns — high bar (O'Neil's original) |
| Return on Capital (ROCE) | ≥ 15% | Capital efficiency across the whole business (debt + equity) |
| Operating Margin | ≥ 12% | Business quality and pricing power |
| Price vs 52W High | ≥ −15% | Stock must be near its annual high — CAN SLIM buys near highs, not bottoms |
| Price CAGR 1Y (RS proxy) | ≥ 15% | Relative strength — the stock must be outperforming the market in the past year |
| Promoter Holding | ≥ 30% | Institutional/insider ownership conviction |
| Market Cap | ≥ ₹1,000 Cr | Minimum liquidity — avoids illiquid micro-caps |
| Debt-to-Equity | ≤ 1.0 | Reasonable leverage — growth should be funded by earnings, not debt |
"Price vs 52W High" is the most misunderstood criterion. Most investors instinctively avoid stocks near their highs and prefer stocks that have "fallen to a good price." CAN SLIM does the opposite — O'Neil's research showed that stocks making new highs are more likely to continue higher than stocks bouncing off lows. A fail on this criterion means the stock has lost price momentum, which is a CAN SLIM dealbreaker regardless of financials.
3. Quality + Value — Buffett-Style Compounder Framework
Quality + Value — 5 of 9 passed. Passes: OPM, Interest Coverage, Pledge%, D/E, MCap. Fails: ROE, ROCE, Profit Growth 5Y, Profit Growth 3Y.
A Buffett-style quality investing framework: durable competitive advantage, consistent profitability, low leverage, and reasonable valuation. Designed for investors who hold companies for years, not months. Stricter on profitability thresholds than CAN SLIM, but relaxed on price momentum (no price criteria at all).
The 9 Criteria
| Criterion | Threshold | What It Tests |
|---|---|---|
| Return on Equity (ROE) | ≥ 15% | Sustainable returns to shareholders — the hallmark of a quality business |
| Return on Capital (ROCE) | ≥ 15% | Full capital efficiency — excludes businesses that generate ROE via leverage tricks |
| Operating Margin | ≥ 15% | Structural pricing power — thin-margin businesses rarely compound well |
| Profit Growth 5Y CAGR | ≥ 12% | Long-term earnings compounding track record |
| Profit Growth 3Y CAGR | ≥ 10% | Recent earnings consistency — slightly lower bar than 5Y to allow for near-term cycles |
| Interest Coverage | ≥ 3x | Debt safety margin — business can cover interest 3× over even in a down year |
| Pledge % | ≤ 5% | Governance check — any significant pledging is a red flag for long-term holders |
| Debt-to-Equity | ≤ 0.5 | Conservative balance sheet — stricter than CAN SLIM, true Buffett-style standard |
| Market Cap | ≥ ₹500 Cr | Minimum scale and liquidity — below this, compounding is harder and governance weaker |
Why D/E ≤ 0.5, not ≤ 1.0? Quality + Value applies a stricter leverage standard than CAN SLIM. Buffett-style investing favours businesses that compound using their own earnings — heavy debt dependency means the business's survival depends on interest rates and credit markets, not just operational excellence. D/E ≤ 0.5 is the standard for true capital-light compounders.
4. Dividend Growth — Income & Stability Framework
Dividend Growth — 4 of 6 passed. Passes: Promoter Holding, Pledge%, D/E, MCap. Fails: Profit Growth 3Y CAGR, ROE.
Designed for income-oriented investors who prioritise stable, growing dividend payers over capital growth. The framework focuses on stability indicators — promoter conviction, governance, earnings growth for dividend sustainability, and balance sheet strength. It has the fewest criteria (6) but each carries high conviction.
The 6 Criteria
| Criterion | Threshold | What It Tests |
|---|---|---|
| Promoter Holding | ≥ 40% | High promoter ownership signals skin-in-the-game — promoters with large stakes have incentive to pay dividends |
| Pledge % | ≤ 5% | Governance cleanliness — pledged promoter shares create risk of forced selling that disrupts dividend policy |
| Profit Growth 3Y CAGR | ≥ 8% | Earnings must grow at least modestly to sustain and grow dividends over time |
| Return on Equity (ROE) | ≥ 12% | Business must generate decent returns to have surplus cash available for dividends |
| Debt-to-Equity | ≤ 1.0 | Low debt ensures interest payments don't crowd out dividend capacity |
| Market Cap | ≥ ₹2,000 Cr | Stricter size requirement — small companies have volatile cash flows; large caps sustain dividends better through cycles |
Dividend Growth MCap threshold is the highest of the three frameworks. ₹2,000 Cr versus ₹500 Cr (Quality + Value) and ₹1,000 Cr (CAN SLIM). This reflects the reality that reliable dividend payers are typically larger, more mature businesses with predictable free cash flow. A ₹300 Cr company might pay dividends today but is too small to sustain them through a cyclical downturn.
5. How to Use the Checklists in Practice
Match the Framework to Your Investment Style
| If you are… | Weight this framework | Ignore or de-weight |
|---|---|---|
| A momentum-growth investor (6–18 month horizon) | CAN SLIM Style | Dividend Growth (not relevant for your style) |
| A long-term compounder investor (3–10 year horizon) | Quality + Value | CAN SLIM (price momentum criteria not relevant) |
| An income investor focused on dividends | Dividend Growth | CAN SLIM (growth bar too high for mature dividend payers) |
| A balanced investor | Quality + Value primary, Dividend Growth secondary | CAN SLIM unless also momentum-oriented |
Reading the Criterion Table
- Step 1 Switch to your relevant framework tab (CAN SLIM / Quality + Value / Dividend Growth).
- Step 2 Note the overall pass rate — this is your quick framework fit score.
- Step 3 Scan the (fail) rows — these are specific weaknesses. Note how far below threshold the actual value is.
- Step 4 For each fail, decide: is this structural (unlikely to improve) or cyclical (likely to recover)? A 3Y CAGR fail in a down-cycle year is different from a permanent ROE problem.
- Step 5 Cross-reference fails with the Investment Analysis sub-tab's Risk Factors — if the same metric appears in both places, it is a confirmed weakness, not a borderline case.
No checklist can replace your own judgement. All three frameworks are data-driven and backward-looking — they measure what has happened, not what will happen. A stock with a 40% CAN SLIM score may be on the verge of an earnings re-rating that would push it to 80% in 6 months. Use the checklists as a structured starting point for research, not as a final filter.
Common Patterns to Watch
| Pattern | What It Means | What to Check Next |
|---|---|---|
| High Quality + Value, Low CAN SLIM | Great business, low momentum — may be in a slow phase or out of favour | Check Valuation tab P/E Percentile Zone — if "Attractive" it may be a patient accumulation candidate |
| High CAN SLIM, Low Quality + Value | Strong momentum but questionable business quality — typical of cyclical upcycles | Check Quick Analysis tab for trend signals and Forensics for red flags before chasing momentum |
| High Dividend Growth, failing only ROE | Stable, clean company but returns are modest — typical of utilities, infrastructure | Check if Dividend Payout % and Dividend Yield justify holding for income despite low ROE |
| All three frameworks below 50% | Stock does not fit any standard investment framework well at current metrics | Go to Investment Analysis for the overall Ratio Score — the business may still warrant a HOLD if risk is low |
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