Synopsis:
Several large-cap companies have demonstrated exceptional capital efficiency, generating outstanding returns on capital employed (ROCE) above 50% in FY25.
These high-performing firms delivered ROCE exceeding 50%, reflecting strong profitability, efficient resource utilization, and robust business models, making them attractive options for investors seeking sustainable long-term returns.
ROCE (Return on Capital Employed) measures how efficiently a company uses its capital to generate profits. It’s calculated as EBIT ÷ Capital Employed, showing how much profit is made for every rupee of capital used.
Nestle India Ltd
Nestle India Ltd is a leading FMCG company specializing in food and beverages, including popular brands in dairy, coffee, nutrition, and culinary products. Known for its strong brand portfolio, quality focus, and consistent innovation, the company has maintained steady revenue growth and profitability in the Indian market.
With market capitalization of Rs. 2,31,349 cr, the shares of Nestle India Ltd are closed at Rs. 1,199.50 per share, from its previous close of Rs. 1,187.80 per share. The company achieved a Return on Capital Employed (ROCE) of 95.7% in FY25, indicating highly efficient utilisation of its capital to generate profits.
Hindustan Zinc Ltd
Hindustan Zinc Ltd is a leading integrated zinc-lead-silver mining and smelting company in India. It operates multiple mines and smelting facilities, focusing on sustainable mining practices, high operational efficiency, and consistent profitability, making it a key player in the global zinc industry.
With market capitalization of Rs. 2,10,548 cr, the shares of Hindustan Zinc Ltd are closed at Rs. 498.30 per share, from its previous close of Rs. 512.25 per share. The company achieved a Return on Capital Employed (ROCE) of 60.7% in FY25, indicating highly efficient utilisation of its capital to generate profits.
Tata Consultancy Services Ltd
Tata Consultancy Services Ltd is a global IT services and consulting leader, offering solutions in software development, digital transformation, and business process services. Known for its strong client base, innovation, and consistent financial performance, TCS is a key player in India’s IT sector and the global technology landscape.
With market capitalization of Rs. 10,95,702 cr, the shares of Tata Consultancy Services Ltd are closed at Rs. 3,028.30 per share, from its previous close of Rs. 3,061.70 per share. The company achieved a Return on Capital Employed (ROCE) of 64.6% in FY25, indicating highly efficient utilisation of its capital to generate profits.
Life Insurance Corporation of India
Life Insurance Corporation of India (LIC) is the country’s largest state-owned insurance and investment company, offering a wide range of life insurance products and financial services. It plays a key role in mobilizing savings, providing financial security, and supporting India’s economic growth.
With market capitalization of Rs. 5,67,858 cr, the shares of Life Insurance Corporation of India are closed at Rs. 897.80 per share, from its previous close of Rs. 895.20 per share. The company achieved a Return on Capital Employed (ROCE) of 53.1% in FY25, indicating highly efficient utilisation of its capital to generate profits.
Hyundai Motor India Ltd
Hyundai Motor India Ltd is a leading automobile manufacturer in India, producing a wide range of passenger vehicles, including hatchbacks, sedans, and SUVs. Known for innovation, quality, and strong after-sales service, the company maintains a significant market share in the Indian automotive sector.
With market capitalization of Rs. 1,95,156 cr, the shares of Hyundai Motor India Ltd are closed at Rs. 2,415.20 per share, from its previous close of Rs. 2,408.80 per share. The company achieved a Return on Capital Employed (ROCE) of 54.2% in FY25, indicating highly efficient utilisation of its capital to generate profits.
Written by Manideep Appana
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. Trade Brains Technologies Private Limited 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.
