The Mahindra Group is a multinational company with operations in over 100 countries. The company is engaged in six business units, such as Automotive, Farm Equipment, Infrastructure, Trade and Financial Services, and IT.
Return on equity(ROE) signifies a company’s ability to generate returns on the investments it has received from its shareholders.
Return on Equity = Net Income or Profits/Shareholder’s Equity
Here are three Mahindra Group stocks with High ROE
Swaraj Engines Ltd
Swaraj Engines, a renowned tractor engine manufacturer, shares were trading at Rs 2,031.65 per share on Thursday, up 0.53 percent from the previous close price and with a market capitalization of Rs 2,468 crore.
The company’s Profitability ratios are in a better position, with return on capital employed at 51.41 percent, its return on equity at 39.04 percent, and its net profit margin at 9.39 percent. In addition, the firm has had a debt-to-equity ratio of zero for the previous five years.
Revenue of Swaraj Engines climbed slightly year over year to Rs 399 crore in Q1FY24 from Rs 398 crore in the same quarter of the prior year (Q1FY23), while net profit rose to Rs 40 crore from Rs 39 crore.
Swaraj Engines manufactures diesel engines for tractors with capacities ranging from 22 to 65 horsepower, as well as high-tech engine components.
Mahindra & Mahindra Ltd
Mahindra & Mahindra, one of the most diverse automakers, has a market value of Rs 1,95,091 crore and its shares were trading at Rs 1,568.85 per share on Thursday, down 0.11 percent from the previous close price.
The company’s profitability ratios have improved over the years, with the return on capital employed at 12.66 percent, the return on equity at 18.24 percent, and the company’s net profit margin increased to 8.13 percent.
The company’s revenue climbed by 19 percent year on year to Rs 33,891 crore in Q1FY24, from Rs 28,412 crore in the previous year’s corresponding quarter (Q1FY23), while net profit increased by 78 percent to Rs 3,422 crore in Q1FY24, from Rs 1,918 crore in Q1FY23.
Mahindra & Mahindra Ltd is a diversified conglomerate that is in the business of financial services, auto components steel trading and processing, IT businesses, agri, aerospace, consulting services, defence, energy, and many more.
Tech Mahindra Ltd
Tech Mahindra has a market capitalization of Rs 1,19,435 crore, and its shares were trading at Rs 1,225.15 a share on Thursday, a 0.22 percent decrease from the previous close price.
The company’s profitability ratios have improved over the years, with the return on capital employed at 21.51 percent, the return on equity at 17.30 percent, and the company’s net profit margin declined to 9.16 percent.
The company’s revenue climbed by 3.5 percent year on year to Rs 13,159 crore in Q1FY24, from Rs 12,707 crore in the previous year’s corresponding quarter (Q1FY23), while net profit declined by 39 percent to Rs 695 crore in Q1FY24, from Rs 1,147 crore in Q1FY23.
Tech Mahindra Ltd offers a wide range of IT services, such as IT-enabled services, application development and maintenance, consultancy, and corporate business solutions, among others.
Written by Omkar Chitnis
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