Radhakishan Damani, the founder of DMart is also an ace investor. Often considered Rakesh Jhunjhunwala’s guru, the business magnate publicly holds 13 stocks with a net worth of over ₹ 177,080.9 crores, according to the filings for the July-September quarter.
Some of his stocks have a very high return on equity (ROE). ROE is a measure of a company’s profitability and how efficient it is in generating profits. It is obtained by dividing net income by the average shareholder’s equity.
A high return on equity indicates that a company’s management is efficient at generating income and growth from its equity financing. Investors usually invest in those companies that have a return on equity of at least 15% to 20%. Here are a few high ROE stocks in which ace investor Radhakishan Damani has invested:
Blue Dart Express Ltd.
Radhakishan Damani holds a 1.4% stake in Blue Dart Express, or 3,31,770 shares worth ₹ 240.7 crores. The company has a market capitalization of ₹ 16,978 crores and is a mid-cap company. Its shares were trading at ₹ 7260.00 levels on Friday. Further, it has an excellent return on equity of 52.22%.
Blue Dart Express is engaged in the transportation and door-to-door distribution of time-sensitive shipments, through an integrated ground and air transportation network.
VST Industries Ltd.
The ace investor holds a 32.3 % stake in VST Industries, or 49,93,204 shares worth ₹ 1,797.6 crores. The company has a market capitalization of ₹ 5,623 crores and is a small-cap company. Its shares were trading at ₹ 3590.00 levels on Friday and it has an excellent return on equity of 31.79%.
VST Industries is engaged in the manufacturing and trading of cigarettes, tobacco and tobacco products amongst other things.
Metropolis Healthcare Ltd.
Radhakishan Damani holds a 1.1 % stake in the company, or 5,46,274 shares worth ₹ 78.1 crores. It has a market capitalization of ₹ 7,328 crores and is a mid-cap company.Its shares were trading at ₹ 1510.00 levels on Friday and it has a good return on equity of 26.89%.
Metropolis Healthcare is engaged in providing pathology and related healthcare services.
Aptech Ltd.
Radhakishan Damani holds a 3.0% stake in the company, or 12,55,227 shares worth ₹ 40.0 crores. It has a market capitalization of ₹ 1,364 crores and is a small-cap company. Its shares were trading at ₹ 320.00 levels on Friday and it has a good return on equity of 26.28%.
Aptech Ltd. is a pioneer in the non-formal education and training business in the country and a significant global presence, with more than 800 centres.
Written By Simran Bafna
Disclaimer
The content in this news article is not investment advice. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
