The name ‘Tata’ is synonymous with trust. It carries a legacy that spans more than a century. The group has been actively evolving with changing times and is innovating its business on a continuous basis. Its immaculate reputation has helped it to attract investors, consumers and some of the best talent.
ROE is a measurement of financial performance that gauges how efficiently it is generating profits from its equity. Here are a few Tata Group companies with a high return on equity (ROE):
Tata Consultancy Services
TCS is the flagship company of the Tata Group. It has been providing IT services, consulting and business solutions for over 50 years. It is a large-cap company with a market capitalization of ₹ 11,76,550 crores and its shares settled at ₹ 3302.25 apiece.
The IT major has a high return on equity of 46.94%. Its net profit increased from ₹ 38,327 crores to ₹ 42147 crores, up 9.97%. Its share price moved sideways in the past year.
Tata Elxsi
Tata Elxsi is amongst the world’s leading providers of design and technology services across industries. It is a mid-cap company with a market capitalization of ₹ 47,244 crores and its shares settled at ₹ 7584.05 apiece.
The company has a high return on equity of 40.97%. Its net profit increased by 37% to ₹ 755 crores as compared to ₹ 550 crores in the previous year. Its share price fell by 7% in the past year.
Benares Hotels
Benares Hotels is a tata group company that manages hotels like Taj Ganges and Taj Nadesar Palace in Varanasi and The Gateway Hotel, Gondia in Maharashtra. It became a subsidiary of The Indian Hotels Company Limited in 2011. With a market capitalization of ₹ 566 crores, it is a micro-cap company, and its shares closed at ₹ 4436.00 apiece.
The company has a high return on equity of 26.33%. Its net profit increased by 313% to ₹ 23.38 crores as compared to ₹ 5.65 crores in the previous year. In the past year, its share price gained 145%.
Titan Company
Titan Company is India’s most respected lifestyle brand with leadership positions in the watches, jewellery and eyewear categories. With a market capitalization of ₹ 2,68,831 crores, it is a large-cap company, and its shares closed at ₹ 3047.65 apiece.
The company has a high return on equity of 30.73%. Its net profit increased by 49.6% to ₹ 3,250.00 crores as compared to ₹ 2,173.00 crores in the previous year. In the past year, its share price gained 57%.
Written By Simran Bafna
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