If you want a proven way to find winning stocks in India, this article shows you exactly how to do it using Joel Greenblatt’s Magic Formula — adapted to work in the Indian market. You will learn how to spot high-quality, undervalued companies in minutes. Plus, discover how adding one smart filter (like momentum) can supercharge your returns — up to 600% more in backtests. It is simple, practical, and works without spreadsheets. If you want to invest smarter and faster, this step-by-step guide is for you.
Estimated Reading time: 6 minutes
How to Find Magic Formula Investment Strategy Stocks in India
If you are investing your own money in India’s stock market and want a reliable way to find winning stocks, the Magic Formula strategy may be exactly what you are looking for. This approach — created by hedge fund manager Joel Greenblatt — has helped thousands of investors find quality companies trading at bargain prices. And yes, you can use it in India too.
Let me walk you through exactly how you can find these stocks yourself — step by step.
What Is the Magic Formula?
Think of the Magic Formula as a simple but powerful recipe. It finds companies that are:
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High quality → measured by Return on Invested Capital (ROIC)
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Undervalued → measured by Earnings Yield (EBIT/Enterprise Value)
Each stock is ranked by these two factors. The ones with the best combined scores rise to the top of the list. The lower the rank = better stock.
It is that easy to understand and use.
Why Use the Magic Formula in India?
You may wonder — does this U.S.-based strategy really work in India?
Yes. It does, as it has worked in various markets worldwide.
Tests across Europe and other countries confirm it works almost everywhere. For example:
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In Europe (1999–2011), top-ranked Magic Formula stocks beat the market by as much as 152.3%.
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In Finland, the strategy outperformed consistently over 13 years.
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In the Benelux region, it delivered 7.7% more per year than the market over 20 years.
With India’s large pool of listed companies and plenty of under followed stocks, this strategy should work well.
Click here to start finding your own Magic Formula ideas NOW!
How You Can Find Magic Formula Stocks in India—In Minutes
You do not need to build spreadsheets or hunt for data. Everything is ready for you.
Here is how you do it using the Quant Investing Stock Screener:
Step-by-Step:
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Log in and open the stock screener.
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Click the Screener icon.
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Under Predefined Filters, find and click Magic Formula Screen → Click Confirm.
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Select India as the country.
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Set your minimum daily trading volume and market value to avoid illiquid stocks (e.g. $ 100,000 and $100 million.
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Click Apply.
You will get a list of the top Magic Formula stocks in India right now.
Want Even Better Returns? Add a Second Filter
Our research shows the Magic Formula works even better when combined with one more smart ratio.
In a 12-year European test:
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Magic Formula alone → +182.8%
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Magic Formula + 6-month momentum → +783.3%
(That’s a 600.5% improvement!)
Other top combinations:
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Magic Formula + 12m Momentum → +472.3%
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Magic Formula + Price-to-Book → +460%
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Magic Formula + ERP5 Score → +384.4%
These extra filters are easy to add in the screener:
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Just select one as a Secondary Factor from the dropdown menu (e.g., Price Index 6m).
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Use the slider to select only the top 20% or 30% of stocks with the best scores.
Customise & Save Your Screens
Once you have the screen setup as you like:
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Click Save As
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Give your screen a name and description
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Click Save
Now you can come back anytime and run the same screen in seconds.
It Costs Less Than Lunch for Two
You might expect a professional tool like this to cost a fortune. It doesn’t.
Plus, you get a full 30-day money-back guarantee. No risk. Just great investment ideas.
Final Thought: Start Today
The best time to start was yesterday. The next best time is now.
The Magic Formula gives you a proven, easy-to-follow system. Combined with the Quant Investing Screener, you have everything you need to pick better stocks—faster.
👉 [Click here to sign up right now.]
You are not just saving time. You are investing smarter.
Click here to start finding your own Magic Formula ideas NOW!
FREQUENTLY ASKED QUESTIONS
1. Can I really trust a U.S. strategy to work in India?
Yes, you can. The Magic Formula works worldwide. Studies show it beat the market in Europe, Finland, and other countries. India’s market has many under followed stocks — this makes it a great place for this kind of strategy.
2. Do I need to know accounting to use the Magic Formula?
Not at all. The Quant Investing screener does the hard work for you. It ranks all stocks by quality and value. You just apply the screen and get the top Magic Formula stocks — no hard work needed.
3. How much time do I need to find these stocks each month?
Only a few minutes. Once you save your Magic Formula screen, it takes just seconds to update your list. You can check it monthly or quarterly — whenever you prefer to review your picks.
4. Is it okay to only use the Magic Formula, or should I add more filters?
The Magic Formula works well on its own — but adding one smart filter makes it even better. For example, adding 6-month momentum improved returns by over 600% in a test. Try adding one extra factor to boost your results.
5. How do I avoid buying bad or illiquid stocks?
In the screener, set a minimum trading volume (e.g., $100,000/day) and market value (e.g., $100 million). This keeps your list limited to liquid, investable stocks.
6. What if I do not want to start with real money?
You can test the strategy using the free demo of the Quant Investing screener. It uses one-year-old data, so you cannot buy the stocks now, but you can learn how the system works and build confidence.
7. Why should I trust this strategy over just picking stocks myself?
The Magic Formula removes emotion. It follows data, not guesses. It is based on real returns, not opinions. If you have ever felt lost or stressed picking stocks, this system brings clarity and confidence.
Click here to start finding your own Magic Formula ideas NOW!
Please note: This website is not associated with Joel Greenblatt and MagicFormulaInvesting.com in any way. Neither Mr Greenblatt nor MagicFormulaInvesting.com has endorsed this website's investment advice, strategy, or products. Investment recommendations on this website are not chosen by Mr. Greenblatt, nor are they based on Mr Greenblatt's proprietary investment model, and are not chosen by MagicFormulaInvesting.com. Magic Formula® is a registered trademark of MagicFormulaInvesting.com, which has no connection to this website.
