While analyzing any stock, research institutions consider various financial ratios to evaluate a company’s financial health and performance. Two of the prime ratios focused on by analysts are Return on Equity (RoE) and Return on Capital Employed (RoCE).
The Return on Equity (RoE) and the Return on capital employed (RoCE) are valuable tools for evaluating a company’s profitability, efficiency, and growth potential. Analyzing these ratios, especially in combination, provides a comprehensive view of a company’s financial performance and helps investors make informed investment decisions.
Return on Equity (ROE) is a fundamental metric that measures a company’s profitability with shareholders’ equity and the Return on Capital Employed (ROCE) is a financial ratio that measures a company’s profitability and the efficiency with which its capital is employed.
Listed below are three stocks under the ‘small-cap’ category that reported RoE and RoCE of up to 45 percent during FY24:
Zensar Technologies Limited
With a market capitalization of Rs 14,135.40 crores, the stocks of Zensar Technologies Limited, a leading digital solutions and technology services company, started their trading session on Saturday at Rs 620.75 and closed at Rs 623.65, gaining approximately 1.20 percent compared to the previous close of Rs 616.25 apiece.
Having a glance at the recent financials, the company’s basic business indicators, viz, its operating revenues as well as after-tax profits, reported an increase in numbers with the former increasing from Rs 1,204 crores during Q3FY24 to Rs 1,230 crores during Q4FY24 and the latter, keeping the timeframe the same, shifting from Rs 162 crores to Rs 173 crores.
In addition, the company’s return ratios, viz, the return on equity (RoE) and return on capital employed (RoCE), were reported at decent numbers during FY24 with the former at 18.66 percent and the latter at 23.63 percent.
Anup Engineering Limited
With a market capitalization of Rs 3,689.84 crores, the stocks of Anup Engineering Limited, manufacturing heat exchangers, reactors, etc, started their trading session on Saturday at Rs 1,852 and closed at Rs 1,854.10, slipping approximately 0.32 percent compared to the previous close of Rs 1,860 apiece.
Having a glance at the recent financials, the company’s basic business indicators, viz, its operating revenues as well as after-tax profits, reported an increase in numbers with the former increasing from Rs 128 crores during Q3FY24 to Rs 157 crores during Q4FY24 and the latter, keeping the timeframe the same, shifting from Rs 20 crores to Rs 43 crores.
In addition, the company’s return ratios, viz, the return on equity (RoE) and return on capital employed (RoCE), were reported at decent numbers during FY24 with the former at 19.58 percent and the latter at 21.21 percent.
Avantel Limited
With a market capitalization of Rs 2,894.91 crores, the stocks of Avantel Limited, engaged in designing, developing, wireless and satellite communication products, defence equipment, etc, started their trading session on Saturday at Rs 117.20 and closed at Rs 119, gaining approximately 1.54 percent compared to the previous close of Rs 117.20 apiece.
Having a glance at the recent financials, the company’s basic business indicators, viz, its operating revenues as well as after-tax profits, reported a dip in numbers with the former decreasing from Rs 59 crores during Q3FY24 to Rs 42 crores during Q4FY24 and the latter, keeping the timeframe the same, reducing from Rs 17 crores to Rs 13 crores.
In addition, the company’s return ratios, viz, the return on equity (RoE) and return on capital employed (RoCE), were reported at decent numbers during FY24 with the former at 32.02 percent and the latter at 44.35 percent.
Written by Amit Madnani
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
