Expecting a bullish run in the Indian stock market, various investor classes are on a continuous watch for stocks that have the potential to provide good returns on their money invested.
Listed below are three stocks engaged in the ‘Information Technology’ (IT) industry that have high profitability ratios, viz, high return on equity (RoE) and return on capital employed (RoCE) during the past financial year:
NINtec Systems Limited
With a market capitalization of Rs 655.73 crores, the stocks of NINtec Systems Limited, an offshore software solutions & development services company, are currently trading at Rs 353, gaining around 0.60 percent as compared to the previous closing levels of Rs 350.95 apiece.
In the last six months, the company’s stock has delivered multibagger returns of around 130 percent for its stakeholders, i.e., if someone had invested Rs 1 Lakh into the stock, it would have converted to Rs 2.30 Lakhs within a period of six months.
Looking at the financials of the company, it reports decent growth in basic profitability metrics such as the return on equity (RoE) as well as the return on capital employed (RoCE). The former was reported at 28.66 percent during FY22-23, and, the latter, keeping the timeframe the same, was reported at 36.99 percent.
Dynacons Systems and Solutions Limited
With a market capitalization of Rs 906.73 crores, the stocks of Dynacons Systems and Solutions Limited, an India-based company providing end-to-end technology and other associated services, are currently trading at Rs 714.35, slipping around 0.20 percent as compared to the previous closing levels of Rs 715.90 apiece.
Year-to-date, the company’s stock has delivered multibagger returns of around 102 percent for its stakeholders, i.e., if someone had invested Rs 1 Lakh into the stock, it would have converted to Rs 2.02 Lakhs within the above-mentioned period.
Having a glance at the financials of the company, it reports decent growth in basic profitability metrics such as the return on equity (RoE) as well as the return on capital employed (RoCE). The former was reported at 31.93 percent during FY22-23, and, the latter, keeping the timeframe the same, was reported at 44.07 percent.
Innovana Thinklabs Limited
With a market capitalization of Rs 1,455 crores, the stocks of Innovana Thinklabs Limited, a provider of next-generation digital services as well as products, are currently trading at Rs 709.75, gaining around 4.20 percent as compared to the previous closing levels of Rs 681 apiece.
The company’s stock has delivered multibagger returns of 463 percent to its stakeholders within a span of the last one year, i.e., if someone had invested Rs 1 Lakh into the stock, it would have converted to Rs 5.63 Lakhs within a period of three months.
Having a look at the financials of the company, it reports decent growth in basic profitability metrics such as the return on equity (RoE) as well as the return on capital employed (RoCE). The former was reported at 24.19 percent during FY22-23, and, the latter, keeping the timeframe the same, was reported at 27.67 percent.
Written by Amit Madnani
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