Putting it together

A repeatable research workflow: (1) Universe definition (large/mid/small, sectors of interest), (2) Quantitative screen (return on capital, valuation, growth), (3) Qualitative deep dive (management, competitive position, governance), (4) Valuation (DCF + relative), (5) Position sizing (conviction × allocation), (6) Monitoring and exit triggers.

Universe: 500 stocks (NIFTY 500). Screen: top quartile ROCE, bottom quartile P/E (or sector-adjusted), positive EPS growth — yields 30-50 candidates. Qualitative: read 5 years of annual reports per name, listen to earnings calls, attend AGMs (or watch recordings). Score each on management quality (1-5), competitive moat (1-5), governance (1-5). Valuation: DCF with conservative assumptions; relative vs peers. Position sizing: high-conviction (top quartile of scores + cheap valuation) gets 5-7% weight; medium 3-4%; low 1-2%. Maximum 25-30 names in portfolio. Monitoring: quarterly results, governance changes (auditor change, promoter pledge, related-party transactions). Exit: target valuation reached, governance flag, position size > 10% (forced trim).

A practitioner insight: the hardest part isn't finding good stocks — it's holding through volatility. A great stock can drop 40% on no news; a great manager weighs the original thesis vs new information and acts only if the thesis is broken. Most retail investors panic-sell quality during corrections and never re-enter. The disciplined process: predefined exit rules, automatic alerts on governance flags, scheduled portfolio reviews (not opportunistic ones). Equity research is 20% finding, 80% holding through doubt.