Eight Indian small-cap stocks match O'Shaughnessy's criteria

Eight small-cap stocks in India have been identified as aligning with James P. O'Shaughnessy's quantitative investing strategy. This strategy focuses on companies that show strong price performance, positive earnings growth, and low price-to-sales ratios. One of the notable companies is Polyplex, which reported an operating revenue of Rs 6,824 crore but experienced an annual revenue decline of 18%. Despite this, it has a manageable debt-to-equity ratio of 10%, suggesting a stable financial position. The stock is currently about 21% away from its key price level known as the pivot point. Another company, Skipper, has a solid operating revenue of Rs 4,490 crore, with an impressive 66% annual revenue growth. Its debt-to-equity ratio is 34%, indicating financial stability. However, the stock needs to rise above its key moving averages to show strong upward momentum. Shree Pushkar Chemicals & Fertilisers reported Rs 777 crore in operating revenue with a 6% growth. The company is debt-free and maintains stable earnings. The stock has to surpass its 50-day moving average to proceed with significant upward movement. Zuari Agro Chemicals achieved Rs 4,382 crore in operating revenue with a modest 3% growth. It has a 26% debt-to-equity ratio. Similar to others, the stock must breach its key moving averages to see meaningful growth. Pennar Industries has operating revenues of Rs 3,143.6 crore and an 8% revenue growth rate. It has a debt-to-equity ratio of 15%. The stock is currently below its 200-day moving average. Ramco Industries has Rs 1,604.9 crore in operating revenue, with a 2% growth rate and no debt, which keeps its balance sheet strong. The stock remains below key moving averages. Century Enka reported Rs 2,026 crore in operating revenue with an annual decrease of 15%. Its debt-to-equity ratio is low at 2%. The stock also sits below its key moving averages. Lastly, Hindustan Media Ventures has Rs 719.7 crore in operating revenue with a slight 2% growth. It is debt-free and needs to break through its 200-day moving average to demonstrate further stability. Investors may analyze these stocks carefully. Each has promising aspects but faces challenges in terms of technical performance.