Formula
Stock Score = Repeat Count × Allocation × AUM Quality × Sector Tailwind × Business Quality
Or simply:
Repeated Stock + High Allocation + High AUM + Strong Sector + Good Business = Multibagger Candidate
Step 1: Collect Top Mutual Funds
Choose top-performing funds from:
Midcap
Large & Midcap
Flexicap
Smallcap
For example:
Motilal Oswal Midcap
WhiteOak Midcap
Nippon Midcap
HDFC Midcap
Edelweiss Midcap
Invesco Midcap
Step 2: Find Repeated Stocks
Highest Priority
| Number of Funds | Rating |
|---|---|
| 6+ funds | ★★★★★ |
| 4-5 funds | ★★★★☆ |
| 2-3 funds | ★★★☆☆ |
| 1 fund | ★★☆☆☆ |
Example:
| Stock | Funds Holding |
|---|---|
| Federal Bank | 6 |
| Fortis Healthcare | 5 |
| AU Small Finance Bank | 5 |
| BSE | 4 |
| MCX | 4 |
Step 3: Check Allocation
Ignore allocations below 1%.
Prefer:
| Allocation | Rating |
|---|---|
| >5% | ★★★★★ |
| 3-5% | ★★★★☆ |
| 2-3% | ★★★☆☆ |
| <1% | Ignore |
Step 4: AUM Support
Money invested in the stock:
₹5000+ Cr
★★★★★
₹2000–5000 Cr
★★★★☆
₹1000–2000 Cr
★★★☆☆
<₹500 Cr
Low conviction
Step 5: Sector Rating
| Sector | Rating |
|---|---|
| Financials | ★★★★★ |
| Defence | ★★★★★ |
| Industrials | ★★★★★ |
| Power Equipment | ★★★★★ |
| Healthcare | ★★★★★ |
| Technology | ★★★★☆ |
| Consumption | ★★★★☆ |
| Chemicals | ★★★★ |
| Telecom | ★★★★ |
| Real Estate | ★★★ |
Step 6: Business Quality
Look for:
✅ Sales growth >15%
✅ Profit growth >20%
✅ ROCE >20%
✅ Debt/Equity <0.5
✅ Market leader
✅ Competitive advantage
Final Scoring Model
| Factor | Weight |
|---|---|
| Repeat Count | 35% |
| Allocation % | 25% |
| AUM Support | 15% |
| Sector Opportunity | 15% |
| Fundamentals | 10% |
Interpretation
| Score | Meaning |
|---|---|
| 90-100 | Potential 10× compounder |
| 80-90 | Potential 5× compounder |
| 70-80 | Strong long-term compounder |
| 60-70 | Average |
| <60 | Avoid |
The Super Shortcut
R × A × M × S × F
Where:
R = Repeat Count
A = Allocation %
M = Money behind it (AUM support)
S = Sector tailwind
F = Fundamentals