Blue-chip stocks are usually defined as stocks of typically large, financially sound, and well-established companies operating for many years and having dependable earnings. The market capitalization of the stocks is that of the large-cap stocks. Such kinds of stocks are also been observed to pay dividends to their investors.
Listed below are 2 such Blue-chip stocks that have reported a Return on Equity (ROE) of more than 50 percent in the past year:
Coal India Limited
Coal India Limited, one of the largest coal producers in the world, is responsible for the vast majority of India’s coal production. The company operates across various mining areas that are spread over various provincial states of India.
With a market capitalization of Rs 148,490 crores, the company’s stock closed today at Rs 240.95, up nearly 1.4 percent as compared to the previous closing levels of Rs 237.70.
The return on equity (ROE) generated by the company increased from 43.60 percent during FY21-22 to 56 percent in FY22-23. The ratio has been positively impacted due to a rise in the profit after tax (PAT) numbers which improved from Rs 17,378 crores to Rs 28,125 crores during the same period.
Britannia Industries Limited
Britannia Industries Limited is primarily involved in the process of manufacturing and selling various food products. Its product portfolio includes biscuits, bread, rusk, cakes, and dairy products including milk, cheese, and yogurt. Its geographical segments include both, domestic as well as overseas operations.
With a market capitalization of Rs 110,965 crores, the company’s stock closed today at Rs 4,606.90, down nearly 0.50 percent as compared to the previous closing levels of Rs 4,630.85.
The return on equity (ROE) generated by the company increased from 49.70 percent during FY21-22 to 66.60 percent in FY22-23. The ratio has been positively impacted due to a rise in the profit after tax (PAT) numbers which improved from Rs 1,516 crores to Rs 2,316 crores during the same period.
Written by Amit Madnani
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