Magic Formula
good businesses at good prices
Joel Greenblatt’s ranking: high return on capital at a high earnings yield. Top 30.
On 6 Nov 2026, the Magic Formula screen finds 30 companies on NSE and BSE. To pass, a company needs: Earnings yield above 0%; Return on capital employed above 0%; Market Capitalization above ₹500 Cr. The largest industry groups are Construction (8) and Capital Goods (4) out of 30 companies, with a median market cap of ₹1,380 Cr and a median P/E of 9.4×. The top three by combined rank are Mcnally Bharat Engineering Company, Sun Pharma Advanced Research Company and Indosolar; 1,048 other companies could not be tested because data was missing.
Joel Greenblatt’s Magic Formula ranks every company twice: once by earnings yield (EBIT ÷ enterprise value, “how cheap”) and once by return on capital (“how good”). The two ranks are added and the 30 best combined scores make the list.
Financial companies and utilities are excluded, as in the original method, because their capital structures make both measures misleading. So are companies under ₹500 Cr of market cap, where a single year’s numbers swing too much.
30 companies pass
| 30 days | ||||||||
|---|---|---|---|---|---|---|---|---|
| 316.95 | 1,057 | 31.1% | 638.7% | 0.3 | 3.2 | 0.17 | ||
| 193.52 | 6,280 | 23.4% | 111.8% | 3.8 | 4.2 | 0.42 | ||
| 204.88 | 852 | 27.5% | 76.1% | 6.8 | 3.1 | 0.01 | ||
| 102.06 | 2,865 | 32.8% | 47.1% | 1.2 | 2.7 | 0.24 | ||
| 189.93 | 799 | 19.6% | 54.9% | 0.9 | 4.2 | 0.31 | ||
| 365.45 | 714 | 13.2% | 65.7% | 9.7 | 7.5 | 0.00 | ||
| 55.46 | 893 | 12.6% | 67.8% | 12.6 | 7.1 | 6.90 | ||
| 1,284.30 | 8,961 | 38.7% | 34.8% | 6.9 | 2.3 | 0.17 | ||
| 71.89 | 3,121 | 12.1% | 48.2% | 10.1 | 7.1 | 0.21 | ||
| 1,441.80 | 21,470 | 20.0% | 33.4% | 3.8 | 4.4 | 0.16 | ||
| 6.10 | 975 | 17.8% | 34.2% | 5.3 | 5.4 | 0.71 | ||
| 370.35 | 850 | 19.8% | 33.3% | 7.2 | 4.6 | 0.33 | ||
| 826.80 | 1,489 | 12.4% | 44.3% | 9.1 | 8.0 | 0.31 | ||
| 166.75 | 1,131 | 19.0% | 32.5% | 6.1 | 4.8 | 1.00 | ||
| 91.56 | 1,346 | 10.4% | 74.4% | 12.6 | 9.6 | 0.80 | ||
| 3,795.25 | 750 | 10.2% | 79.0% | 2.7 | 8.9 | 0.03 | ||
| 285.00 | 1,425 | 12.8% | 37.4% | 10.5 | 7.1 | 0.76 | ||
| 946.70 | 1,413 | 10.7% | 51.1% | 14.9 | 7.2 | 0.06 | ||
| 157.13 | 2,750 | 10.5% | 47.7% | 13.2 | 8.6 | 0.00 | ||
| 325.75 | 59,828 | 14.0% | 33.3% | 8.4 | 6.5 | 0.00 | ||
| 84.97 | 957 | 10.4% | 47.5% | 11.7 | 3.5 | 0.26 | ||
| 153.66 | 1,430 | 11.6% | 36.4% | 10.5 | 8.6 | 0.03 | ||
| 211.04 | 501 | 9.1% | 115.7% | 13.9 | 10.2 | 0.08 | ||
| 656.45 | 709 | 16.5% | 30.5% | 8.9 | 5.2 | 1.32 | ||
| 229.29 | 2,614 | 18.1% | 29.7% | 7.6 | 5.3 | 0.14 | ||
| 276.65 | 3,087 | 10.5% | 42.5% | 14.3 | 9.2 | 0.40 | ||
| 134.78 | 3,904 | 10.1% | 45.2% | 13.1 | 9.0 | 0.69 | ||
| 199.05 | 696 | 29.2% | 28.4% | 12.2 | 3.2 | 1.55 | ||
| 185.64 | 2,251 | 10.3% | 38.7% | 17.1 | 9.3 | 0.11 | ||
| 6.84 | 846 | 12.4% | 30.7% | 10.2 | 6.8 | 0.02 | ||
| Median of 30 | – | 1,380 | 13.0% | 44.7% | 9.4 | 6.7 | 0.23 |
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