Return on Equity (ROE) is a measure of how well a company spends its shareholders’ money. It is calculated by dividing a company’s profit by the equity of its shareholders. A higher ROE indicates that the company is getting good returns on every rupee invested. This makes it appealing to shareholders because it demonstrates efficient use of their funds.
Here is a list of three mid-cap stocks with high ROE of up to 48 percent
Angel One Ltd
Angel One Ltd is a diversified financial services company that primarily engages in stock, commodity, and currency broking, institutional broking, margin trading, depository services, and mutual fund distribution, lending as an NBFC, and acting as corporate agents for insurance companies.
In comparison to its peers, the company has a low price-to-earnings ratio of 27, a low debt-to-equity ratio of 0.37, a return on equity ratio of 48 percent, a return on capital employed of 44 percent, and a net profit margin of 29 percent.
On Friday, the company closed at 1 percent up Rs 3,281 per share from its previous close of Rs 3,248.10. It has a market capitalization of Rs 27,540 Crores.
Angel One Limited’s share price has risen 102 percent in the last six months and 149 percent year to date. For example, if an investor invested Rs 1 lakh a year ago, the current value would be Rs 2.49 lakhs.
The net revenue of the company has increased by 46 percent year on year from Rs 716 crores in Q2FY23 to Rs 1,047 crores in Q2FY24. In addition, net profit rose 42 percent year on year, from Rs 213 crores in Q2FY23 to Rs 304 crores in Q2FY24.
ICICI Securities Ltd
ICICI Securities has been a reliable partner for over 25 years. Through its focus on key areas such as broking, wealth management, derivatives, and financial product distribution, it remains at the forefront of being a one-stop solution for investors.
The company has a low price-to-earnings ratio of 19 compared to its peers, with a return on equity of 42 percent, a return on capital employed of 18 percent, and a net profit margin of 32 percent.
ICICI Securities Limited has risen 29 percent in the last six months and 47 percent in a year to date. The company has a market capitalization of Rs 23,650 crores.
The share price has closed 1.16 percent down to Rs 729.80 per share from its previous close of Rs 738.40 per share on Friday.
Looking at the financials of ICICI Securities Ltd, their net revenue increased by 45 percent year on year, from Rs 858 crore in Q2FY23 to Rs 1,249 crore in Q2FY24. In addition, the net profit increased by 41 percent year over year, from Rs 300 crore in Q2FY23 to Rs 423 crore in Q2FY24.
Sanofi India Ltd
Sanofi India Ltd, a Sanofi subsidiary, is a healthcare company. It focuses on a variety of therapeutic areas such as diabetes, cardiology, consumer healthcare, hospitals, the central nervous system, and antihistamines.
The company has a return on equity of 36 percent, a return on capital employed of 49 percent, and a net profit margin of 22 percent. It has a zero debt-to-equity ratio and a low price-to-earnings ratio of 31 when compared to its peers.
Sanofi India Ltd has risen 18 percent in the last six months and 37 percent in a year to date. The company has a market capitalization of Rs 18,450 crores.
On Friday, the share price rose 0.87 percent to Rs 8,012.75 per share, from a previous close of Rs 7,943.80 per share.
Looking at the financials of Sanofi India Ltd, their net revenue increased by 3.3 percent year on year, from Rs 691 crore in Q2FY23 to Rs 714 crore in Q2FY24. In addition, the net profit increased by 16 percent year over year, from Rs 130 crore in Q2FY23 to a net loss of Rs 152 crore in Q2FY24.
Written by Sriram KV
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