Return on Equity (ROE) and Return on Capital Employed (ROCE) are two important financial ratios that help retail investors in investing. ROE measures a company’s profitability by indicating how much profit it generates using the shareholders’ equity.
On the other hand, ROCE evaluates a company’s ability to generate profits from its total capital including both equity and debt.
Here are a few hand-picked stocks held by the ace investor Ashish Kacholia which have a strong ROE and ROCE :
Advait Infratech:
Advait Infratech Ltd is engaged in the business of providing products and solutions for power transmission, power substation, and telecommunication infrastructure fields.
As of March 2024, the company’s ROE stood at 29.7 percent and the ROCE stood at 39.09 percent. Additionally, the net profit margin for the same year stood at 10.47 percent.
Analyzing the financials of the firm on a year-on-year basis, The revenues from operations increased by 102 percent from Rs. 103 crores in FY22-23 to Rs 209 crores in FY23-24. Also, the net profits of the company increased by 175 percent from Rs. 8 crores in FY22-23 to Rs 22 crores in FY23-24.
Overall, the company’s stocks generated a multi-bagger return of 523.76 percent return over the past year and another multi-bagger return of 192.04 percent over the past 6 months.
As of 30th May 2024, Ace Investor Ashish Kacholia holds 2,88,185 units of equity shares and has invested Rs 40 crores to acquire it.
Niit Learning Systems Limited
NIIT Learning Systems Limited offers Managed Training Services to companies across 30 countries. They have a suite of Managed Training Services including Custom Content and Curriculum Design along with Learning Delivery, Learning Administration, and Strategic Sourcing.
As of March 2024, the company’s ROE stood at 17.53 percent and the ROCE stood at 21.05 percent. Additionally, the net profit margin for the same year stood at 25.50 percent.
Analyzing the financials of the firm on a year-on-year basis, The revenues from operations increased by 14 percent from Rs. 1,362 crores in FY22-23 to Rs 1,554 crores in FY23-24. Also, the net profits of the company increased by 10.9 percent from Rs. 192 crores in FY22-23 to Rs 213 crores in FY23-24.
Overall, the company’s stocks generated a return of 16.93 percent return over the past year and a return of 11.26 percent over the past 6 months.
As of March 2024, Ace Investor Ashish Kacholia holds 2,850,000 units of equity shares or a 2.11 percent stake.
Ador Welding Ltd
Ador Welding Ltd is a leading player in the field of Welding Products, Technologies, and Services. It is engaged in providing solutions for projects related to refineries, oil, gas & petrochemicals.
As of March 2024, the company’s ROE stood at 17.4 percent and the ROCE stood at 24.10 percent. Additionally, the net profit margin for the same year stood at 7.14 percent.
Analyzing the financials of the firm on a year-on-year basis, The revenues from operations increased by 13 percent from Rs. 777 crores in FY22-23 to Rs 884 crores in FY23-24. Also, the net profits of the company increased by 6.7 percent from Rs. 59 crores in FY22-23 to Rs 63 crores in FY23-24.
Overall, the company’s stocks generated a return of 6.67 percent return over the past year and the stock has declined by 12.21 percent over the past 6 months.
As of March 2024, Ace Investor Ashish Kacholia holds 566,600 units of equity shares or a 4.17 percent stake and the holding value stood at Rs 71.0 crores.
Written by Zahal
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