Trendlyne is a trusted investing engine used by regular investors, as well as analysts and brokerages nationwide. It tracks the quality of stocks through its automated system, and provides screener strategies and tools that can potentially maximize your returns.
The unique features on Trendlyne include a) the backtested, powerful DVM Score (Durability, Valuation and Momentum). DVM Scoring helps an investor make better stock selections, and avoid the worst stocks b) Screeners that can be built from over 1000 parameters c) Backtesting that allows you to check the returns on any screener query you write and d) Powerful insights for stocks and portfolios, through portfolio products, Discover and the News engine.
Every stock gets three trademark metrics: Durability, Valuation and Momentum (DVM). Stocks are ranked from 0 (worst) to 100 (best) on each score. This score helps the investor refine the stock universe which is researched with a quick understanding of the overall health of the stock. Example: See the stock scores for Reliance Industries and ICICI Bank.
Durability: The Durability Score is based on the quality of a company’s financials, it’s long term performance, the quality of management. Durability scores above 55 are considered good(G) and below 35 are considered bad(B). Scores between 35-55 are considered neutral/Medium/Middle(M). Stocks with a high durability score (top 20 percentile) are companies that have consistently and over time, demonstrated good growth and cashflow, stable revenues and profits, and low debt.
Valuation: The Valuation Score tracks how expensive the stock is versus is peers. Valuation scores above 50 are considered good(G) and below 30 are considered bad(B). Scores between 30-50 are considered neutral/Medium/Middle(M). Stocks with a high valuation score (top 20 percentile) are companies whose business and financial advantages have not yet been priced into their share price. These companies typically have strong earnings but are currently flying under the radar, and Trendlyne’s valuation score helps shine a spotlight on these companies. Firms with a low valuation score (bottom 20 percentile) are expensive stocks that have good broker coverage and already have their strengths priced in. They are popular but pricey. If you are buying them now it would be for a steep price tag: valuation scores help you identify that.
Momentum: The Momentum Score tracks the bullishness or bearishness of a particular stock relative to the entire stock universe. A Momentum Score above 59 is considered good(G) and below 30 is considered bad(B). Scores between 30-59 are considered neutral/Medium/Middle(M). Momentum score or momentum score identifies the bullish/bearish nature of the stock. Stocks with a high momentum score (which is calculated daily from over 30 technical indicators) are seeing their share price rise, and increase in volumes and sentiment.
Stocks that are green on all three DVM metrics are rare because of the fairly stringent score. Stocks that score high in durability, valuation, momentum, as well as across the DVM, significantly outperform the index.
DVM is GGG: DVM is good across all three metrics. The stock qualifies as a “high performer” in financials and immediate outlook.
DVM is GGB: The stock is strong in durability and valuation, but bearish momentum. This indicates that the stock is a value stock, where the market enthusiasm gap can provide an opportunity for the investor.
DVM is GBG: A stock where it looks like the real opportunity may be past. The company is strong, but valuation is expensive and momentum is driving prices up.
DVM is BGG: These alert investors to riskier investments. Past durability of the stock is not strong. Investors should look for signals here for the company exercising a turnaround, or a pivot into a more profitable segment. Valuation and momentum are good with a turnaround potential.
DVM is BGB: While valuation is good, there isn’t much in stocks with this classification that indicates real promise. Both durability and momentum are weak, suggesting that these stocks may struggle to get out of the price hole that it is in now. Value Trap.
DVM is BBG: These stocks have momentum technically, with share prices rising. But there is little to defend the rise. These mark stocks whose names you often hear in ‘stock tips’ – they rarely offer anything more than adrenaline highs.
DVM is BBB: Bad across metrics, there is not much to redeem stocks with this classification.
Image 1: Classification of stocks based on DVM scores
Investors/users can run their own query to check the DVM score or performance of the stocks in the past or for a particular time period. Let’s understand this with an example. If any investor is interested in the stocks that have outperformed in the index with high DVM score, a query can be run like this: Trendlyne Durability Score >= 55 AND Trendlyne Valuation Score > 50 AND Trendlyne Momentum Score > 60. With this query, all the stocks those with high DVM scores, rating above 50-55 across Durability, Valuation and Momentum will show up.
Image 2: Query example for high DVM scores
The PORTFOLIO feature on Trendlyne gives every registered investor a right to create their own portfolio and to keep an eye on it for any updates. There are different subsections in the PORTFOLIO section that includes PORTFOLIO, PORTFOLIO ANALYSIS, WATCH LIST, TRANSACTIONS, IMPORT PORTFOLIO and EDIT ACCOUNTS.
Image 3: View of Portfolio Dashboard
In the PORTFOLIO section, the investor can add all the stocks that they have invested in, or upload their portfolio via an excel or csv. To see how to upload/import portfolio, see this video.
There are three different charts that show up in the PORTFOLIO section.
The first chart ‘ALL’ shows the total investment done by the investor as per the portfolio created by them.
The next chart below ‘ALL’ shows the RETURNS from the invested amount. It shows one day gain and the total unrealized gain from the investment.
The third and the last chart shows a graphical representation of the ‘PORTFOLIO ALLOCATION’.
The chart shows three different graphical representation that includes the stocks BY NAME, BY SECTOR and BY INDUSTRY. The graph by default shows a pie-chart which can be changed to tabular chart or a bar-graph as per the convenience of the investor.
If any investor wants to add more stocks in the current portfolio, the investor needs to click on Add to Portfolio.
This feature in the Portfolio section helps users do a detailed health check on their portfolio. It includes all the analysis of stocks from different perspectives.
Concentration Analysis: This feature enables an investor to see how diversified their portfolio is between various sectors and stocks. Over-concentrating the portfolio in very few sectors puts the portfolio more at risk. Here’s the process to generate report in Concentration Analysis:
Select Account and Date: In the ‘Select your account’ section, the user can choose any account in the portfolio that they may be interested in generating report. The next column is ‘Select Date’. Any date and year can be selected on this report.
Edit Columns to display in charts: The user can select any parameter based on which they want to generate the report from this section.
After adding all these details, click on Generate Report. Three different charts will show up below the query section, Market Value on Date (Rs Lakhs), Cost Value on Date (Rs Lakh) and Unrealized Gain Value on Date (Rs Lakh) for your portfolio. By default the concentration shown is By Stocks, By Sector and By Industry. The chart by default shows the pie-chart which can be changed to tabular graph or bar graph as per the user’s requirement.
Decision Analysis:Decision Analysis has three different sub-sections, Buy Decision, Hold Decision and Sell Decision. The decision analysis looks closely at the quality of your buy, sell and hold decisions. Did you sell too soon or too late? Did stocks rise in share price significantly after you bought? Are there bad buy decisions in your portfolio?
Portfolio NAV: The performance of stocks in the portfolio is key for any investor. The Net Asset Value (NAV) calculates the market value of the user’s portfolio for a given period of time, after adjusting for losses as well as dividends. Through this Portfolio NAV feature, the user can generate their own NAV and choose an index including stock indices, mutual funds and other investments to the chart to compare performance.
ROLLING RETURNS: Investors can look at the performance of their portfolio at any point in time using Rolling Returns. Users usually get biased by the most recent numbers when talking about performance but Rolling Returns of any user’s portfolio gives a clearer idea about the performance of the portfolio returns and excess returns as well. The user can add any index from the Select Index option to see the comparison. The user also needs to add the account name in Select Your Account and add duration in Select Duration and then Generate Report.
GROWTH TREND: The Growth Trend analysis helps users/subscribers/investors analyse the growth of their portfolio as a whole. This is a weighted average of the growth of the companies in the user's portfolio over a period of time. It identifies the growth laggards and leaders. All that is needed to have a look at this report is to Select your Account and Date and then click on Generate Report.
VALUATION TREND: The Valuation Trend or the Long Term PE calculates share price of a stock as a multiple of the average earnings per share over several years. This is a safer, more cautious PE measure for investors compared to simple historical PE, since it considers the value of a stock over a longer period of time, limiting the effects of recent positive fluctuations.
CALENDAR: With this feature, any user can check for the upcoming and previous dividend, bonus/split, board meetings, forthcoming results in the Portfolio and watchlist stocks. The user needs to select the date range in Start Date and End Date, any of the Corporate Actions and Group of Stocks and then Generate Report in the Calendar section.
Trendlyne’s screener section includes popular multi-query and expert stock screeners, as well as fundamental and technical screeners sorted by various categories – highest returns, DVM, live results, delivery and more.
These screeners can be edited, set as alerts on screeners and can be cloned and modified on your own.
A step-wise explanation of the process to use screeners and set screener alerts:
Click on Screeners
Click on any of the tabs from Expert Screeners, Fundamentals, Shareholding, Technical, Candlestick and Moving Average. Example: Stocks where promoter is buying shares
Click on any screener
The different stocks qualifying for this screener query are now visible. You can use the Filter to see the stocks that qualify for Nifty500, Nifty50, Your Portfolio and Watchlist Stocks, and so on.
On the right-hand side corner of the individual screener page, there is an alert (bell) icon. The user needs to click on this icon to add alerts for that particular screener.
You can then choose the frequency for which you want to set this screener alert.
Image 4: Screener Alert
When an investor is interested in a particular stock, a stock alert can be set on Trendlyne to get all the latest news and the performance of the stock in the market. The alert can be saved on daily, weekly or monthly basis. Here is the step-wise explanation of the process to set general stock alerts:
On any stock page, there is an alert (bell) icon on the right-hand side corner. Click on the icon to set a stock-level alert and receive notifications.
The user gets an option to select different parameters as per their requirement. The alert can be set for daily, weekly or monthly basis.
Image 5: General Stock Alert