Stock Screener and IRFC Share Price are two terms that often come up when investors explore undervalued opportunities in the market. While IRFC has seen its own share of price movement based on broader economic and sectoral developments, investors who look for similar underdogs often rely on a stock screener to uncover turnaround stocks.
Turnaround stocks are companies that were once underperforming but are showing signs of recovery. These stocks can deliver significant gains if identified early. However, spotting them manually is time-consuming and risky. That’s where a well-configured stock screener can help — especially when built using key financial ratios.
Here’s how you can use a stock screener to identify potential turnaround stocks:
- Net Profit Margin Improvement
One of the first signs of a turnaround is improvement in profitability. Use the screener to filter companies that have shown a positive swing in net profit margins over the last 2–3 quarters. This change indicates that the company is managing costs better or generating higher revenue. - Debt-to-Equity Ratio
High debt often drags down a company. Look for firms that have reduced their debt-to-equity ratio recently, showing efforts to clean up their balance sheet. A declining trend in debt can signal improved financial discipline. - Cash Flow from Operations
Positive and increasing operating cash flow is a reliable sign that the business is regaining financial health. Many turnaround stories begin here, even before profits show up on the income statement. - Return Ratios (ROCE & ROE)
Use your screener to filter companies that are showing improvements in Return on Capital Employed (ROCE) and Return on Equity (ROE). Even slight upward movements here can be early signs of a business turnaround. - Price-to-Earnings and Price-to-Book Ratios
Look for companies trading below their intrinsic value — often with a low P/E and P/B ratio compared to industry peers. These could be undervalued assets waiting for a sentiment change. - Revenue Growth Resumption
Screen for stocks with declining revenue for the past 1–2 years but a sudden spike in the most recent quarter or half-year. This suggests business recovery and possible investor interest building up. - Management Commentary and Insider Buying
While not a screener filter, look for positive commentary from management in recent earnings calls or signs of insider buying. These are strong qualitative indicators that complement your screener’s output.
Using a stock screener to combine all these filters lets retail investors quickly narrow down a large universe to a few promising turnaround candidates. Think of companies like IRFC — while not a typical turnaround case, movements in IRFC Share Price based on earnings or government policy demonstrate how sentiment shifts can impact stocks that were once overlooked.
In conclusion, turnaround stocks can be gold mines if caught early. With the right combination of key ratios and a powerful stock screener, you can improve your chances of identifying these hidden gems before the broader market takes notice.