The term “Return on Capital Employed” (RoCE) is generally referred to as a financial ratio that can be used to assess a company’s profitability and capital efficiency. The ratio can help one understand how well a company is generating profits from its capital put to use.
RoCE is one of several profitability ratios that stakeholders, financial managers, and potential investors use when they analyze a company for investment purposes.
Listed below are four stocks under the ‘small-cap’ category with RoCE of up to 63 percent that one should add to their watchlist:
Shilchar Technologies Limited
With a market capitalization of Rs 2,934.45 crores, the stocks of Shilchar Technologies Limited, engaged in the business of manufacturing electronics & telecom and Power & Distribution transformers, closed their trading session on Thursday at Rs 3,847.55, slipping 1.10 percent compared to the previous closing levels of Rs 3,889.60 apiece.
Having a glance at the latest financial reports, the company, during the recent period, reported an increase in its prime business indicators, i.e., its operating revenues as well as after-tax profits.
The former rose from Rs 106 crores during Q2FY24 to Rs 118 crores during Q3FY24, and the latter, keeping the timeframe the same, took an upward shift from Rs 24 crores to Rs 26 crores.
In addition, the company reported healthy ratios with the return on equity (RoE) reported at 35.50 percent, increasing from 17.60 percent of RoE a year ago, and also reported an increase in the return on capital employed (RoCE) from 23.60 percent to 47.13 percent.
Safari Industries (India) Limited
With a market capitalization of Rs 8,436.73 crores, the stocks of Safari Industries (India) Limited, engaged in the business of manufacturing and trading of luggage and luggage accessories, closed their trading session on Thursday at Rs 1,730, slipping 3.40 percent compared to the previous closing levels of Rs 1,791.30 apiece.
Having a glance at the latest financial reports, the company, during the recent period, reported an increase in its prime business indicators, i.e., its operating revenues as well as after-tax profits.
The former rose from Rs 370 crores during Q2FY24 to Rs 388 crores during Q3FY24, and the latter, keeping the timeframe the same, took an upward shift from Rs 40 crores to Rs 43 crores.
In addition, the company reported healthy ratios with the return on equity (RoE) reported at 29.38 percent, increasing from 9.60 percent of RoE a year ago, and also reported an increase in the return on capital employed (RoCE) from 13.05 percent to 34.31 percent.
Expleo Solutions Limited
With a market capitalization of Rs 1,877.89 crores, the stocks of Expleo Solutions Limited, primarily delivering software validation and verification services to the BFSI industry, closed their trading session on Thursday at Rs 1,210, a flat movement compared to the previous closing levels of Rs 1,209.70 apiece.
Having a glance at the latest financial reports, the company, during the recent period, reported an increase in its prime business indicators, i.e., its operating revenues as well as after-tax profits.
The former rose from Rs 234 crores during Q2FY24 to Rs 250 crores during Q3FY24, and the latter, keeping the timeframe the same, took an upward shift from Rs 21 crores to Rs 34 crores.
In addition, the company reported healthy ratios with the return on equity (RoE) reported at 25.50 percent, increasing from 21.12 percent of RoE a year ago, and also reported an increase in the return on capital employed (RoCE) from 27.11 percent to 33.48 percent.
Waaree Renewables Technologies Limited
With a market capitalization of Rs 14,637.66 crores, the stocks of Waaree Renewables Technologies Limited, engaged in the business of generation of power through renewable energy sources, closed their trading session on Thursday at Rs 1,405.45, hitting its 5 percent upper circuit compared to the previous closing levels of Rs 1,338.55 apiece.
Having a glance at the latest financial reports, the company, during the recent period, reported an increase in its prime business indicators, i.e., its operating revenues as well as after-tax profits.
The former rose from Rs 150 crores during Q2FY24 to Rs 324 crores during Q3FY24, and the latter, keeping the timeframe the same, took a drastic shift from Rs 18 crores to Rs 64 crores.
In addition, the company reported healthy ratios with the return on equity (RoE) reported at 65.09 percent, increasing from 28.77 percent of RoE a year ago, and also reported an increase in the return on capital employed (RoCE) from 36.45 percent to 62.74 percent.
Written by Amit Madnani
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