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 alcohol stocks with High ROE
Tilaknagar Industries Ltd
Tilaknagar Industries shares closed at Rs 195.70 a share on Friday, up 1.01 percent from the previous close price and with a market capitalization of Rs 3,747 crore.
Profitability ratios are in a more favorable situation. The return on capital employed at 19.45 percent, the return on equity at 31.04 percent, and the company’s margin has increased to the point where the net profit margin is 12.87 percent.
The company reported a 33 percent increase in sales to Rs 304 crore in Q1FY24, compared to Rs 229 crore in the previous year’s equivalent quarter (Q1FY23), and its net profit increased by 2400 percent to Rs 25 crore in Q1FY24, from Rs 1 crore in Q1FY23.
Tilaknagar Industries Ltd. primarily manufactures and sells Indian Foreign Liquor (IMFL). The company has a strong and broad portfolio of spirits brands, including brandy, whisky, vodka, gin and rum.
United Spirits Ltd
On Friday, United Spirits shares closed at Rs 987.60 a share, down 2.30 percent from the previous close price, And the company has a market capitalization of Rs 71,833 crore.
The company’s Profitability ratios include, The return on capital employed at 19.67 percent, the return on equity at 18.93 percent, and the company’s margin has increased to the point where the net profit margin is 10.62 percent.
The company reported a 140 percent increase in sales to Rs 5,808 crore in Q1FY24, compared to Rs 2,419 crore in the previous year’s equivalent quarter (Q1FY23), and its net profit increased by 83 percent to Rs 477 crore in Q1FY24, from Rs 261 crore in Q1FY23.
United Spirits Ltd is the largest beverage alcohol firm in the country. Johnnie Walker, Black Dog, Black & White, VAT 69, McDowell’s No.1, Smirnoff, and Captain Morgan are among the premium brands manufactured, sold, and distributed by the corporation.
Sula Vineyards Ltd
Sula Vineyards shares were trading at Rs 503.10 a share on Friday, up 2.45 percent from the previous close price and with a market capitalization of Rs 4,242 crore.
Profitability ratios have risen, with the return on capital employed at 21.97 percent, the return on equity at 15.89 percent, and the company’s margin increasing to a net profit margin of 17.92 percent.
The company reported an increase in sales to Rs 107 crore in Q1FY24, compared to Rs 98 crore in the previous year’s equivalent quarter (Q1FY23), and its net profit increased by 45 percent to Rs 16 crore in Q1FY24, from Rs 11 crore in Q1FY23.
Sula Vineyards Ltd produces and sells wine. The company’s operations are separated into two categories: wine production and wine and alcohol imports.
Written by Omkar Chitnis
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