In the dynamic world of investing, small-cap stocks have long been the hidden gems that catch the eye of investors. These are lesser-known companies that offer significant growth potential. But, at the same time, these stocks come with huge risks. One of the ways to judge the potential of these stocks is by seeing how much return these stocks have given to their shareholders.
The key ratios include Return on Equity (ROE), Return on Assets (ROA), and Profit Margins, and more, all of which are return ratios. Higher values of these ratios indicate better profitability, efficient use of resources, and strong financial performance, making such companies attractive to investors.
They suggest that the investment is generating higher profits compared to the amount of risk or capital invested. A higher return ratio is often viewed as a positive sign for investors, as it indicates more efficient and profitable investments.
Central Depository Services (India) Limited
CDSL is one of the two depositories in India, facilitating electronic settlement of securities. It provides services related to dematerialization of securities, handling investor transactions, and maintaining records of securities in electronic form.
The stock has a strong ROE of 34.85 percent and a robust ROCE of 46.12 percent. Additionally, the company’s ROA stands at 27.11 percent and the Debt to Equity Ratio of 0.
Waaree Renewable Technologies Limited
Waaree Renewable Technologies is a leading player in India’s renewable energy sector. The company specializes in manufacturing solar products, including panels, inverters, and battery systems, aiming to provide sustainable energy solutions across the country.
The stock has a strong ROE of 61.98 percent and a robust ROCE of 79.14 percent. Additionally, the company’s ROA stands at 18.58 percent and the Debt to Equity Ratio of 0.1.
PG electroplast Limited
PG Electroplast is a prominent manufacturer of electronic and electrical components, including plastic parts and assemblies. The company caters to various sectors such as consumer electronics, home appliances, and automotive, providing end-to-end solutions for plastic manufacturing.
The stock has a strong ROE of 16.74 percent and an ROCE of 18.98 percent. Additionally, the company’s ROA stands at 8.72 percent and the Debt to Equity Ratio of 0.4.
Shilchar Technologies Limited
Shilchar Technologies is an Indian manufacturer of electrical products, specializing in transformers, reactors, and other high-voltage equipment. The company serves industries like power generation, transmission, and distribution, contributing to infrastructure development.
The stock has a strong ROE of 41.99 percent and a robust ROCE of 56.5 percent. Additionally, the company’s ROA stands at 32.32 percent and the Debt to Equity Ratio of 0.
Gillette India Limited
Gillette India is a subsidiary of Procter & Gamble (P&G) and is known for its premium grooming products, including razors, shaving creams, and personal care items. The company is recognized for its innovation in the shaving industry and its strong presence in the Indian market.
The stock has a strong ROE of 43.71 percent and a robust ROCE of 60.3 percent. Additionally, the company’s ROA stands at 24.06 percent and the Debt to Equity Ratio of 0.
Written by Sridhar J
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