GARP
We tested Peter Lynch's GARP strategy on NSE stocks from 2000 to 2025. Against the Sensex benchmark, the excess is 0.63% per year. Against SPY, the apparent 3.73% excess reflects India's growth premium, not GARP alpha. 11.75% CAGR with higher risk than the index.
momentum
We tested the 52-week high proximity strategy on NSE stocks from 2000 to 2025 with next-day execution. 18.96% CAGR vs 11.12% Sensex, +7.84% excess return. ₹1 grew to ₹87.35 vs ₹15.11 for Sensex. The anchoring effect persists in India's retail-dominated market.
working capital
India produced strong returns for working capital efficiency. Over 25 years, India's most capital-efficient companies returned 15.15% CAGR vs 12.32% for the Sensex. +2.82% annual excess and a 60% win rate against the local benchmark.
earnings
India beat-and-dip events on NSE: 317 events, mostly 2022–2025. T+63 CAR is +1.01% (t=1.11, not significant) vs Sensex. The earlier +2.54%** result was vs INDA ETF, a different benchmark that included USD/INR movements. Measured locally, the edge disappears.
small cap
We backtested small-cap value on Indian exchanges (BSE + NSE) from 2000 to 2025. 22.48% CAGR, beating the Sensex by 10.42% per year. The highest absolute return of any exchange in our 14-market comparison.
value investing
Owner Earnings Yield screen on NSE, 2000-2025. 15.47% CAGR vs Sensex 12.06%. +3.4% annual excess with next-day close execution. All returns in INR against a local benchmark.
Multi-Market
Testing capital efficiency across 6 major markets (2000-2025): India +6.96% vs Sensex, Switzerland +7.13% vs SMI, UK +8.12% vs FTSE, Germany +3.52% vs DAX, US +2.54% vs SPY, China -0.64% vs SSE. How low-capex, high-ROIC strategies travel across markets.
India
Testing capital efficiency in India (NSE): companies spending <8% of revenue on capex while earning >15% ROIC delivered 21.44% CAGR from 2004-2025, beating the Sensex by 6.96%/year. Asset-light businesses thrive in India's growth economy.
Cash Flow
Operating cash flow momentum returned 12.1% annually on NSE stocks from 2000-2025, matching the Sensex. Max drawdown: -21.4% vs Sensex's -32.2%, beta 0.58. $10,000 to $172,659.
dividend investing
We ran a dividend growth screen on NSE stocks. 13.78% CAGR vs 12.06% for the Sensex. Just -4.02% max drawdown. Down capture of -36.0%. Modest excess return, exceptional risk profile.
earnings surprise
India has the strongest beat-side earnings drift we found. Positive surprises produce +2.78% CAR at T+63 vs Sensex, and it survives a next-day entry. Q5 biggest beats reach +3.83%. Q5-Q1 spread: +4.08%.
DCF
We ran a Gordon Growth DCF screen with quality filters on 25 years of Indian BSE/NSE data. No qualifying stocks 2000–2004. From 2005, the strategy returned 11.12% CAGR vs 7.64% SPY, with explosive swing years — 2007 (+85%), 2009 (+84%), 2022 (+36%) — alongside a -61% max drawdown.