ROE (Return on Equity) is a financial metric that calculates a company’s profitability based on its shareholders’ equity. It reflects how effectively a company is utilizing the funds invested by its shareholders to earn profits. The greater the ROE, the better is the financial performance and utilization of equity. The calculation of ROE is Net Income divided by Shareholders’ Equity
1. Tips Music
Tips Music Limited, a Mumbai-based company set up in 1975, deals with music rights acquisition and monetization both within India and outside. It handles a sizeable music library with different languages and genres as well as maintains Hindi film soundtrack copyrights. It primarily commercializes its content online on multiple platforms.
It reported a revenue of Rs 311 crores in FY25, up by 28.6 percent, from its FY24 revenue of Rs 242 crores. It reported a net profit of Rs 167 crores in FY25, up by 31.5 percent, from its FY24 net profit of Rs 127 crores.
The stock is currently trading at Rs 632, down by 33.4 percent from its 52-week high of Rs 950. As of Q4 FY25, it has a return on equity (ROE) of 85.6 percent, with a 5-year average ROE of 72 percent.
2. Lloyds Metals & Energy Ltd
Lloyds Metals and Energy Limited, established in 1977 and having its head office in Mumbai, produces and markets sponge iron products in India. It is engaged in three business segments: Sponge Iron, Power, and Mining. Besides, it generates by-products such as char, fly ash, ESP dust, bed materials, and iron ore fines, and engages in power generation and distribution.
It reported a revenue of Rs 6,721 crores in FY25, up by 3 percent, from its FY24 revenue of Rs 6,522 crores. It reported a net profit of Rs 1,450 crores in FY25, up by 16.7 percent from its FY24 net profit of Rs 1,243 crores.
The stock is currently trading at Rs 1,213, down by 18 percent from its 52-week high of Rs 1,478. As of Q4 FY25, it has a return on equity (ROE) of 31.5 percent, with a 5-year average ROE of 45 percent.
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3. Avantel
Avantel Limited is an Indian company that produces telecom products and provides associated services. Its product range consists of software-defined radios, satellite and HF communication gear, radar systems, embedded systems, and digital signal processing solutions. It also offers mobile satellite services for vessels, submarines, and aircraft, and radar and railway information systems. Avantel provides RF test equipment and has sophisticated engineering facilities with CNC machines, 3D printing, and molding. It also produces healthcare products.
It reported a revenue of Rs 249 crores in FY25, up by 11 percent from its FY24 revenue of Rs 224 crores. It reported a net profit of Rs 56 crores in FY25, up by 5.6 percent, from its FY24 net profit of Rs 53 crores.
The stock is currently trading at Rs 117, down by 47.6 percent from its 52-week high of Rs 224. As of Q4 FY25, it has a return on equity (ROE) of 28.6 percent, with a 5-year-average ROE of 31 percent.
Written by Satyajeet Mukherjee
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