3 Smallcap FMCG stocks with a high ROE of up to 33%; Are you holding any?

Return on equity (ROE) depicts a company’s capacity to generate returns on investments made by its shareholders. Return on Equity is the metric of a company’s net income divided by the value of its total shareholders’ equity. 

Here are three Small-cap FMCG stocks with High ROEs of up to 33% 

Vadilal Industries Ltd 

The shares of Vadilal Industries are currently trading at Rs 2,575.80 a share, down 0.15% percent from the previous close price of Rs 2,578 for a market capitalization of Rs 1,853 crore. 

The profitability ratios of the company are in a strong position with the return on capital employed at 26.02 percent, the return on equity at 24.23 percent, and the company’s margin has increased to a net profit margin of 9.10 percent. 

Vadilal Industries’ revenue has increased by 5 percent year on year, from Rs 391 crore in Q1FY23 to Rs 410 crore in Q1FY24. During the same period, net profit increased by 45 percent from Rs 49 crore to Rs 71 crore. 

Vadilal Industries is engaged in the business of manufacturing ice cream, Frozen Desserts, Juicy, and Candy and processing and exporting Processed Food products. 

Mishtann Foods Ltd 

The shares of Mishtann Foods are currently trading at Rs 13.98 a share, up 1.60 percent from the previous close price of Rs 13.76 and with a market capitalization of Rs 688 crore. 

The profitability ratios of the company are in a strong position with a return on capital employed at 47.97 percent, the return on equity at 33.23 percent, and the company’s net profit margin standing at 7.67 percent. 

The company’s revenue has declined by 49 percent year on year, from Rs 158 crore in Q1FY23 to Rs 80 crore in Q1FY24. During the same period, net profit decreased by 63 percent from Rs 11 crore to Rs 4 crore. 

Mishtann Foods Ltd. is engaged in the manufacturing and processing of Rice, wheat, etc.

M K Proteins Ltd 

The shares of M K Proteins are currently trading at Rs 837.35 a down 0.37% percent from the previous close price of Rs 840.50 and with a market capitalization of Rs 1,051 crore. 

Profitability ratios are in a more favorable situation. The return on capital employed at 30.87 percent, the return on equity at 21.17 percent, and the company’s net profit margin stands at 3.38 percent. 

The company’s revenue has increased by 23 percent year on year, from Rs 256 crore in FY21-22 to Rs 315 crore in FY 22-23. During the same period, net profit increased by 10 percent from Rs 10 crore to Rs 11 crore. 

M K Proteins Ltd manufactures Vegetable Refined Oils and By-Products. Such as Refined Rice Bran Oil, Canola Oil, Soybean Oil, Sunflower Oil, and Rice Bran Bleached Oil. 

Written by Omkar Chitnis

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