Having healthy profitability ratios is crucial for companies as it enables investors to stay assured about the returns on their investments and is an indicator of the smooth functioning of activities in the company. Herein this article, we will focus on the basic profitability ratios such as the return on equity (ROE) and the return on capital employed (ROCE).
Listed below are 3 Multibagger stocks that portray decent profitability ratios:
Knowledge Marine & Engineering Works Limited:
The company’s shares were trading at Rs 1,156 on Tuesday, down around 0.93 percent as compared to the previous closing levels of Rs 1,160. It has a market capitalization of Rs 1,248 crores.
The scrip has delivered multibagger returns of around 349 percent in the last year. It means that if someone would have invested Rs 1 Lakh into the stock, it would have converted to Rs 4.49 Lakhs within a period of one year.
Coming onto the profitability ratios, the company, according to the latest financial results as on March 2023, reported a return on equity (ROE) of 35.10 percent and a return on capital employed of 38.32 percent.
Knowledge Marine & Engineering Works Limited is engaged in the business of marine infrastructure engineering, and other construction work.
CG Power and Industrial Solutions Limited:
The company’s shares were trading at Rs 378.70 on Tuesday, up 0.24 percent from the previous close price. Its market capitalization is Rs 57,866 crores.
The scrip has been successful in delivering multibagger returns of around 126 percent in the last year. It means that if someone would have invested Rs 1 Lakh into the stock, it would have converted to Rs 2.26 Lakhs within a period of one year.
Coming onto the profitability ratios, the company, according to the latest financial results as on March 2023, reported a return on equity (ROE) of 53.76 percent and a return on capital employed of 52.25 percent.
CG Power & Industrial Solutions Limited is a company based in India that is engaged in providing its solutions and services to various industries and consumers for the purpose of application and management of electrical energy.
Ksolves India Limited:
The company’s shares were trading at Rs 901 on Tuesday, up 0.33 percent as compared to the previous closing levels of Rs 898. It has a market capitalization of Rs 1,062 crores.
The scrip has been able to deliver multibagger returns of around 112 percent in the last one year. It means that if someone would have invested Rs 1 Lakh into the stock, it would have converted to Rs 2.12 Lakhs within a period of one year.
Coming onto the profitability ratios, the company, according to the latest financial results as on March 2023, reported a return on equity (ROE) of a whopping 110.43 percent and a return on capital employed of 138.72 percent.
Serving customers in India, Ksolves India Limited develops technology as well as designs applications such as ‘Big Data’ and other software solutions for various startup companies.
Written by Amit Madnani
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