Synopsis:
This article highlights companies with strong Return on Assets (ROA), showing efficient use of assets to generate profits. It reviews their recent financial performance, ROA growth, and return on equity.
Return on Assets measures how well a company uses its assets to make a profit. It shows how much income a business earns for each dollar it owns in assets. For investors, ROA is important because it helps identify companies that are efficient and well-managed.
The following are the stocks with a reasonable return on assets:
1. Hindustan Zinc Limited
Hindustan Zinc Limited, a part of the Vedanta Group, is a leading producer of zinc, lead, and sulphuric acid. The company is involved in exploring, mining, processing minerals, and manufacturing metals. Its main business includes mining and smelting of zinc and lead, and captive power generation.
The company has a market value of Rs.2,05,709.66 crore, and its share price was trading at Rs.486.65, down by 0.99 percent from the previous closing price of Rs.491.50.
In Q1FY26, revenue from operations fell to Rs.7,723 crore compared to Rs.8,130 crore in Q1FY25, while net profit fell to Rs.2.204 crore from Rs.2,358 crore a year earlier.
The company has reported a return on equity of 72.4 percent. Its P/E ratio stands at 20.38, which is lower than the industry average of 32.41. Its return on assets grew from 17.45 percent in March 2021 to 30 percent in March 2025.
2. Colgate Palmolive India Limited
Colgate-Palmolive India Ltd is involved in producing and selling toothpaste, tooth powder, toothbrushes, mouthwash, and other personal care products. The company has a market value of Rs.60,696.31 crore and its share price was trading at Rs.2,231.60, up 0.13 percent from the previous closing price of Rs.2,228.65.
In Q1FY26, revenue from operations fell to Rs.1,420.6 crore compared to Rs. 1,485.7 crore in Q1FY25, while net profit fell to Rs.320.6 crore from Rs.363.9 crore a year earlier.
The company has reported a return on equity of 81.2 percent. Its P/E ratio stands at 47.09, which is lower than the industry average of 53.20. Its return on assets grew from 35.77 percent in March 2021 to 47.59 percent in March 2025.
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3. Waaree Renewable Technologies Limited
Waaree Renewables Technologies Ltd is involved in generating power from renewable energy sources and also offers consultancy services related to renewable energy. The company has a market value of Rs.10,789.52 crore, and its share price was trading at Rs.1,035, down by 0.70 percent from the previous closing price of Rs.1,042.30.
In Q1FY26, revenue from operations grew to Rs.603 crore compared to Rs.236.3 crore in Q1FY25, while net profit grew to Rs.86.3 crore from Rs.28 crore a year earlier.
The company has reported a return on equity of 65.4 percent. Its P/E ratio stands at 37.82, which is lower than the industry average of 42.53. Its return on assets grew from negative 1.16 percent in March 2021 to 20.45 percent in March 2025.
4. Tata Consultancy Services Limited
Tata Consultancy Services, the flagship company of the Tata Group, is a leading provider of IT services, consulting, and business solutions. The company offers a wide range of services and solutions, combining consulting expertise with advanced technology and engineering capabilities.
The company has a market value of Rs.3,02,803.16 crore, and its share price was trading at Rs.2,973.15, down by 0.50 percent from the previous Rs.2,988.05. In Q1FY26, revenue from operations grew to Rs.63,437 crore compared to Rs.62,613 crore in Q1FY25, while net profit grew to Rs.12,819 crore from Rs.12,105 crore a year earlier.
The company has reported a return on equity of 52.4 percent. Its P/E ratio stands at 22.84, which is lower than the industry average of 29.96, suggesting that the stock may be priced lower compared to its peers. Its return on assets grew from 24.80 percent in March 2021 to 30.41 percent in March 2025.
Written by Jhanavi Sivakumar
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