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Stock Analytics

Quality Score

Punji's Quality Score is a composite 0-100 rating of a company's fundamental strength - profitability, balance-sheet health, and earnings consistency - designed to be comparable across sectors. It isn't a price target or a buy/sell signal.

What is Quality Score?

Quality Score is a composite 0-100 rating computed from a company’s reported fundamentals - profitability, balance-sheet strength, and consistency of earnings over time, among other factors - and is designed to be comparable across sectors with very different business models (a bank, an IT services firm, and a telecom operator are judged on the same 0-100 scale). A higher score reflects a fundamentally stronger business by these measures. It is not a price target, valuation call, or buy/sell signal: a high-quality company can still be expensively priced relative to its earnings, and a lower-scoring one can still be reasonably priced at the right valuation.

WHAT GOES INTO IT

The score draws on reported financial-statement data - profitability margins, balance-sheet leverage and liquidity, and the stability of earnings across recent reporting periods - rather than price or technical indicators. This is the deliberate distinction from RSI, SMA, and ADX on this site: those three are derived purely from price history, while Quality Score is derived purely from the underlying business’s own reported numbers.

Real Quality Score across 6 large-cap stocks

CHART

Quality Score - 6 real stocks

Composite 0-100 fundamental quality rating as of 2026-10-01.

0285684112Tata Cons…Infosys L…Reliance …HDFC Bank…Bharti Ai…ICICI Ban…

Stocks compared: Reliance Industries Ltd · Tata Consultancy Services Ltd. · HDFC Bank Ltd. · Infosys Ltd · ICICI Bank Ltd. · Bharti Airtel Ltd.

Reading the spread

Across these 6 stocks, quality score runs from 80 (ICICI Bank Ltd.) to 100 (Tata Consultancy Services Ltd.), a gap of 20. The middle value is 87, with 3 of 6 above it. Taking higher as better, Tata Consultancy Services Ltd. leads and ICICI Bank Ltd. trails on this measure alone.

How to use it in practice

Use the quality score as a first screen on a stock’s financial health. It counts how many of a set of pass or fail checks a stock meets, across areas such as profitability, growth, balance sheet and valuation, and the result is a simple 0 to 100 reading. A higher score means more checks passed. It helps you shortlist stocks to study in more depth, rather than to pick a stock outright.

Common mistakes

A score is a summary and hides which checks were failed, so look behind the number. It is also a snapshot as of the latest reported period, and it does not account for price: a high-quality stock can still be expensive. Banks and insurers are assessed on a modified set, so compare scores within the same type of company. See the methodology for the exact checks.

Frequently asked questions

How is the quality score calculated?

It counts the pass or fail checks a stock meets across groups such as profitability, growth, balance sheet and valuation. It is unweighted, so each check counts equally.

Does a high quality score mean I should buy the stock?

No. It describes financial health, not price. A high-quality stock can be expensive, and a low score does not rule out a turnaround.

Why do some stocks show not enough track record?

The score needs several periods of reported results. New listings and recently demerged companies do not have enough history yet.

WHAT THIS MEANS FOR YOU A high Quality Score does not mean a stock is a good buy at today’s price - it describes the business, not the valuation. Pair it with the stock’s P/E ratio, EPS growth trend, and current price relative to its 52-week range before drawing any investment conclusion; a high-quality company bought at a stretched valuation can still underperform a lower-quality one bought cheaply.

METHODOLOGY Quality Score computed from each company’s most recently reported fundamentals as of the period-end shown on its own stock page. Data: Punji fundamentals (company filings). Not investment advice.

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