Trendlyne DVM Scores

What it means when a stock has no Durability Score

On some stocks, you will see the Durability Score greyed out, with an IE (ineligible) in its place. Here’s an example:

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The Durability Score marked ‘IE’ for this stock and greyed out.

 

What does this mean? IE and a grey color means that this stock is ineligible for a durability score.

A stock is considered ineligible for durability scoring when Trendlyne cannot validate the financials, due to one or more data points in the financial statements:

  • Not enough data available for our algorithms (newly listed stocks). The durability score tracks financials over the long term, so such newly listed stocks will see a Durability Score appear after a few quarters of publishing their financials.
  • Flags in their financial data: Other income > 70% of revenues in Trailing Twelve Months(TTM), AND other income > revenues in at least two quarters in the past twelve months. These tend to be worrying indicators.
  • Revenues TTM < Rs. 30 crore. The stock is too small to qualify for a durability score.
  • Company market capitalization < Rs. 50 crores. The stock is too small to qualify for a durability score.

Ineligible for a valuation score

 

Some stocks are also identified by Trendlyne as ineligible for a valuation score. A stock is considered ineligible for such scoring when the stock is a newly listed stock, and there is not enough data available for the algorithms.