Return on capital employed (ROCE) is one of the most important metrics used by investors; it indicates how efficiently a company is managing capital. Generally, ROCE above 15 percent is considered to be good. However, the biggest challenge for companies is to consistently maintain ROCE for years.
Along with ROCE, debt on the company also plays a huge role, lower the better. So here we have curated the list of Companies which have consistently maintained ROCE of more than 20 percent for 5 years and along with low debt.
Likhitha Infrastructure Ltd
Incorporated in 1998, Likhitha Infrastructure Ltd is in the business of laying gas supply pipe lines and irrigation canals, building bridges over the canals and related maintenance works. The company has a market capitalization of 1265.95 crores.
On 13th October 2023, shares of Likhita Infrastructure Ltd were trading at Rs. 321.70 crores per share and it has delivered 74.93 percent returns in the last one year.
Likhitha Infrastructure Ltd reported ROCE of 27.24 percent and Debt to equity ratio of 0 for the last financial year. Company’ revenue has increased by 41.89 percent to Rs. 364.95 crores in FY23 from Rs. 257.21 crores in FY22, in the same period net profit increased by 29.42 percent to Rs. 59.52 crores from Rs. 45.99 crores.
Caplin Point Laboratories Ltd
Caplin Point Laboratories Ltd is engaged in the manufacturing and sourcing of APIs, finished formulations, R&D, clinical research with presence in Latin America, Africa, USA and other nations. The company has a market capitalization of 8,453.34 crores.
On 13th october 2023, shares of Caplin Point Laboratories Ltd were trading at Rs. 1,112.10 per share and it has delivered 56.6 percent in the last one year.
Caplin Point Laboratories Ltd reported ROCE of 23.68 percent and Debt to equity ratio of 0 for the last financial year. Company’s revenue has increased by 15.54 percent to Rs. 1,466.73 crores in FY23 from Rs. 1,269.41 crores in FY22, in the same period net profit increased by 25.49 percent to Rs. 376.26 crores from Rs. 299.84 crores.
Goldiam International Ltd
Goldiam International Ltd is engaged in the business of manufacturing and exporting gold and diamond jewellery to global retailers. The company is an original equipment manufacturer (OEM) partner for retailers. Company’s products include engagement rings, wedding bands, earrings, pendants etc. The company has a market capitalization of 1,410.76 crores.
On 13th october 2023, shares of Goldiam International Ltd were trading at Rs. 132.85 per share and it has delivered 5.77 percent returns in the last one year.
Goldiam International Ltd reported ROCE of 21.25 percent and Debt to equity ratio of 0 for the last financial year. Company’s revenue has decreased by 22.47 percent to Rs. 533.18 crores in FY23 from Rs. 687.74 crores in FY22, in the same time period net profit decreased by 26 percent to Rs. 89.61 crores from Rs. 121.29 crores.
Written by: Vinit Israni
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