Indian investor and trader Vijay Kishanlal Kedia is the largest stakeholder in a number of publicly traded firms. His major stock-picking approach is based on the term SMILE. This abbreviation stands for small in size, medium in experience, large in ambition, and extra-large in market potential.
Return on equity(ROE) signifies a company’s ability to generate returns on the investments it has received from its shareholders.
Return on Equity = Net Income or Profits/Shareholder’s Equity
Here are three Vijay Kedia stock with High Return on Equity ratio
Lykis Ltd
A premium FMCG company, Lykis Ltd., specialises in tea planting, sales, and exports to domestic and international markets.
Lykis shares were trading at Rs 77.34 a share on Thursday, down 2% from the previous close price and with a market capitalization of Rs 149 crore.
The profitability ratios have been better recently.While Return on capital employed climbed from 34.95 percent to 80.71 percent during the same time period, Return on equity improved from 20.48 percent in FY 21-22 to 57.03 percent in FY 22-23.
Lykis Ltd shares have increased 45 percent over the past six months and 160 percent over the past year.
Company’s revenue for the company increased by 38% year over year, from 328 crore in FY 21–22 to 453 crore in FY 22–23. Net profit rose 650 percent in the same time frame, from Rs 2 crore to Rs 15 crore.
Siyaram Silk Mills Ltd.
Siyaram Silk Mills Ltd engaged in production of textiles and ready-to-wear clothing, mostly for the men’s wear market.Export destinations for the business include Abu Dhabi, Australia, Bahrain, Bangladesh, Cambodia, Canada, and many more.
Siyaram Silk Mills shares were trading at Rs 547.25 on Thursday, down 1.20 percent from the previous close price, with a market capitalisation of Rs 2,549 crore.
In recent years,Return on equity has decreased somewhat from 23.15 percent in FY 21-22 to 22.07 percent in FY 22-23, while Return on capital employed has decreased slightly from 29.34 percent to 28.66 percent during the same time period.
Siyaram Silk Mills Ltd shares has increased 33 percent in the previous four months.
Siyaram Silk revenue increased by 17% year on year, from Rs 1,904 crore in FY 21-22 to Rs 2,232 crore in FY 22-23. Net profit climbed by 16% within the same period, from Rs 216 crore to Rs 250 crore.
Elecon Engineering Company Ltd.
Elecon Engineering is one of the largest manufacturers of Material Handling Equipments and Industrial Gears in Asia.Company Ltd designs and manufactures Material Handling Equipment and Incraft Carriers.
Elecon Engineering shares were trading at Rs 755.55 a share on Thursday, down 0.02 percent from the previous close price, with a market capitalization of Rs 8,477 crore.
The stock has increased 95 percent in the previous six months and 114 percent in the last year.
In recent years, profitability ratios have improved.Return on equity improved from 13.37 percent in FY 21-22 to 18.56 percent in FY 22-23, while Return on capital employed increased from 17.5 percent to 22.46 percent over the same period.
Company revenue increased by 26% year on year, from Rs 327 crore in FY 22-23 to Rs 414 crore in FY 23-24. Net profit climbed by 71% within the same period, from Rs 42 crore to Rs 72 crore.
Written by Omkar Chitnis
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