Return on Capital Employed( ROCE) is a measuring unit of profitability in a company. In simple terms, ROCE of any company defines its efficiency to earn profits through the capital invested and used by the company. A minimum of 20% of ROCE is a good sign for any company. IN ROCE, the capital employed includes equity and preference shares along with debt of the company.
Two of these multibagger stocks have returned ROCE of more than 20% in a year:
Jupiter Wagons Limited
Shares of Jupiter closed at an upper circuit of 5% at Rs. 345.20 after Friday’s trading session. In six months, the stocks have delivered a multibagger return of 273% and 363% in the last year.
Jupiter Wagons Limited is a manufacturing company engaged in manufacturing railway-related products such as passenger coaches, railway freight wagons, shipping containers, wagon components, and many more. The company is headquartered in Kolkata, West Bengal.
With a market capitalization of Rs. 11,934 crore, the company has revenue of Rs. 753.19 crore, an increase of 5.83% since the last quarter. Its net profit for the June Quarter is Rs. 62.85 crore which is an increase of 60.29% from the previous quarter.
The company’s return on capital employed for FY23, stands at 27.08% which surged by 15.29% from 11.79% in the last year.
Ramkrishna Forgings Limited
Shares of Ramakrishna Ltd lost 1.44 % and closed at Rs. 658 levels on Friday. In the last six months, the stock gave a multibagger return of 159.56% and 248.89% in the last one year. In the past 3 years, the stock gained an upside of 1245.15%.
Ramkrishna Forgings Limited is a manufacturing company which acts as a supplier of open and closed die forgings for various sectors including Railway, Automotive, Oil & Gas, Earth moving & mining, and many more. Founded back in 1981, the company also accepts international orders.
It has a market capitalization of Rs. 10,420 crore. For Q1FY24, this small-cap company has a revenue of Rs. 892.34 at an increase of 0.08% and 78.53% as its net profit which is 14.73% higher than the previous quarter.
The company’s return on capital employed for FY23 is at 21.88%, an increase of 49.2% from 14.66% in FY22.
Written by Bhumika Khandelwal
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