Can NSE Screener Be Used for Long-Term Investing?
Introduction
Many investors think screeners are only for short-term trading, but the reality is quite the opposite. When used correctly, the NSE Screener can be an excellent tool for long-term investing. It helps you identify fundamentally strong companies with consistent performance, reasonable valuation, and growth potential. In this post, we’ll show you how to use the NSE Screener to build a reliable long-term portfolio.
Why Use Screeners for Long-Term Investing?
Long-term investing is about finding companies with:
- Strong business models
- Consistent profits
- Financial discipline
- Future growth prospects
Screeners allow you to filter thousands of NSE-listed stocks to focus only on companies that meet these criteria—saving you time and reducing guesswork.
What to Look for in Long-Term Investments
1. Stable Earnings Growth
Look for companies with consistent year-on-year EPS growth.
2. Reasonable Valuation
Avoid overpaying. A low-to-moderate PE ratio is preferable for most sectors.
3. High Return on Equity (ROE)
Indicates capital efficiency and strong management.
4. Low Debt Levels
A lower Debt-to-Equity ratio shows financial stability.
5. Strong Cash Flows
Positive operating cash flow is a sign of sustainable operations.
Best Filters to Use for Long-Term Screening
Here’s a simple long-term filter formula you can use on Screener.in:
sqlCopyEditMarket Cap > 1000 AND
PE < 25 AND
ROE > 15 AND
EPS > 10 AND
Debt to equity < 0.5 AND
Sales growth > 10 AND
OPM > 15
These filters aim to shortlist companies that are:
- Profitable
- Efficient
- Growing
- Financially stable
Step-by-Step: How to Use NSE Screener for Long-Term Picks
- Go to Screener.in
- Paste the above query in the “Query Builder”
- Run the screen to generate a list of stocks
- Sort by ROE, Market Cap, or Industry
- Shortlist 5–10 stocks for deeper manual analysis
Additional Tips for Long-Term Screening
| Tip | Why It Matters |
|---|---|
| Check annual reports | Validate financial consistency |
| Read management commentary | Understand vision and challenges |
| Look at 5–10 year charts | Confirm long-term uptrend |
| Compare with peers | Ensure it’s not lagging in the sector |
| Monitor every quarter | Earnings can impact long-term view |
Common Mistakes to Avoid
- Chasing very low PE without quality
- Ignoring debt levels and cash flow
- Not diversifying across sectors
- Overlooking corporate governance issues
Example of Long-Term Stocks Found Using Screener
| Stock | Reason for Selection |
|---|---|
| Divi’s Labs | High ROE, strong sales growth, debt-free |
| Asian Paints | Consistent compounding, strong margins |
| Pidilite Industries | Monopoly-like business, stable earnings |
| Infosys | Proven performer in IT with solid cash reserves |
📌 These are examples for educational purposes, not stock recommendations.
FAQs
Is NSE Screener enough for long-term investing?
It’s a great starting point. Combine it with detailed research before investing.
How often should I update my screen?
Quarterly—especially after earnings seasons or major market events.
Can I rely only on PE and ROE?
No. Use a combination of valuation, profitability, and growth filters for accuracy.
Conclusion
Yes, NSE Screener can definitely be used for long-term investing—if you use it wisely. The key is to build smart filters that reflect your investment goals and follow up with thorough company research. With patience and consistency, you can use the screener to discover long-term compounders and build a solid equity portfolio.
Explore our other guides on fundamental filters and strategy ideas to take your screening to the next level.
