Today i am going to share Top 10 Stocks with you according to a strategy  which is endorsed by Warren Buffet, written in “the little book that beats the Market” by Joel Greenblatt. Joel Greenblatt runs a hedge fund named Gotham Capital and has compounded capital at 40% for 20 years from 1985 to 2006.

In the Book, Joel Greenblatt gives out his Magic Formula. The Result’s of the Magic Formula in the US Markets have been Amazing and has delivered 30.8% between 1988 and 2004 with delivering negative returns only once.magic-formula-results


The Magic Formula is Easy – Buy Good Companies for Cheap Valuation.

We Ranked all companies listed in Indian Stock market According to 2 main Factor’s of the Magic Formula

1)Good Companies that have High Return on Capital Employed (ROCE)

2)Cheap Companies that trade at a Low Enterprise Value to EBITDA Ratio (EV/EBITDA).

** Please note we have Excluded Holding Companies, Utilities and Financials.

Here is the list of top 10 stocks according to the Magic Formula.

magic-stocksNot all of these will be Multibagger, but these are good companies at below reasonable valuation. I haven’t Back tested this strategy in the Indian Stock Market, but in the US market this strategy has worked really well.

This is definitely not a Stock Recommendation but this strategy has worked really well. We will Review this strategy at the end of 2017. Incase your looking for the full Excel of This feel Free to Mail us at and we will provide you for free.

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  1. Mukul Gupta

    I just finished reading this book and was glad to see an article on this strategy. Could you please mail me the excel file for this ?

    Thank you!

  2. pappukanunggo

    Besides all these things the management integrity is to be weighed in the scale vis-a-vis the ratios of the business .
    Indiabulls mangement as all know is chor management , hence Store one india should not be counted as an investment worthy even if it becomes a multibagger .

    • Please have a look at Indiabulls Housing Finance, it’s been a great compounder.

  3. P Mukherjee

    Can you please email me the same please? Thnx

  4. This would have resulted in 18% profit as of today if invested on Jan-9-2017. I made a calculation. couldn’t paste the screenshot here.
    1) equal allocation for all 10 stocks
    2)10% trailing stop loss

    stoploss is hit for all but two stocks (Indian toners & Hindustan Media). Net profit of 18% includes the notional profit of those two stocks.

    Sandesh 2.60%
    Indian Toners 139.80%
    Star paper mills 6.80%
    Pasupati Acrylon -1%
    K G Denim 6.70%
    Indian Acrylics -5%
    Hindustan Media 5.70%
    Srikalahas. Pip. 25.60%
    Store One Retail -10%
    Trigyn Techno 10%

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