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Market Intelligence › Basic Terminologies
What can a screener provide, and why is it wrong to consider its output as research?
Published by The Retail Trader · AUG 06, 2026 · Advisory & Research
Screener is a filter that removes some of the thousand companies. That's the first step in research, not the last — and most mistakes are made by misinterpreting it.
Screener applies filters on numbers — growth, margin, debt, valuation. It saves you time because it removes names that don't fit your criteria.
But it can only see what is in the numbers. The business model, quality of management and integrity of accounting do not come under any filter.
The work after screener is manual:
• Reading the business section of each name's annual report.
• Looking at numbers over multiple years, not in a snapshot.
• Matching cash flow with profit.
• Checking promoter holding and pledge.
Screener's criteria are also an assumption. If your filter only looks for cheap valuations, it will often give you companies that have a reason for being cheap — the design of the filter is the first bias of its output.
This article is for educational purposes only. It is not a buy or sell recommendation, a claim of guaranteed returns, or advisory guidance. Exchanges, SEBI and RBI change rules, rates and procedures from time to time, so verify every figure with your broker or an official source.