List of Top ROE Stocks India 2022: Quoting one of the richest and oldest investors in the world, value investing is the name of the game. If you want to become a value investor, there are certain metrics you need to study a company’s stock and financials. This includes their debt, revenue, sales, and dividends.
A combination of these gives certain ratios that can make quick work of studying a company’s performance. One such metric we’re writing about is ROE – Return on Equity. ROE is a measure of the Net Income of a company divided by the total number of shareholders’ equity.
ROE = Net Income
Average Shareholders’ Equity
To understand if a company is performing well based on its ROE, you should compare the industry ROE to that of the company in question. If it delivers above the industry average, it is considered a good investment. Here is a list of the top stocks based on their 7-year historical ROE.
List of Top ROE Stocks India 2022
Here is a list of the best ROE Stocks to pay attention to, read on for more information.
Top ROE Stocks India 2022 #1 – EKI Energy
7 Year ROE – 168.75%
EKI is an energy company that was founded in Madhya Pradesh. The small-cap company also provides carbon credit solutions to other businesses. The stock is one of the multi-bagger performers of the year so far, with a CMP of ₹6767.
To compare, in June 2021 the CMP was ₹ 648. That is an increase of 946% in one year. Simultaneously, the company’s ROE has hit an all-time high of 168%, making it to the top of this list.
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Top ROE Stocks India 2022 #2 – Ksolves India
7 Year ROE – 109.4%
KSolves is an Indian Listed Software company. The tech firm has offices in three countries and over 30 clients worldwide. Some of the tech behind the team are Apache, Salesforce, Machine learning, and Artificial Intelligence.
The company has a higher ROE than most of its large-cap competitors, sitting at #2 on this list. The 7-year return on equity is at a significant 109%.
Top ROE Stocks India 2022 #3 – Elpro International
7 Year ROE – 77.8%
Elpro is a manufacturing company that makes high voltage arresters, being the only non-American company in the world to do so. It was incorporated in partnership with General Electric in 1962. Besides this, the company has one subsidiary in Real Estate.
They have a market cap of just over ₹1060 crores, making it a small-cap company. ROE stands at a high 78%, after a record-breaking profit of ₹1055 crores in Q4 2022.
Top ROE Stocks India 2022 #4 – Castrol India
7 Year ROE – 63.75%
Founded 112 years ago, Castrol India is the second-largest automobile oil and lubricant company in India. They have a comfortable 20% market share in the Indian subcontinent and are a subsidiary of the BP Group.
Historically, they have had a positive ROE of 63.75% over the past 7 years. The lubricant manufacturer managed to stay profitable and even issue dividends during the pandemic, despite a production shutdown.
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Top ROE Stocks India 2022 #5 – Kwality Pharma
7 Year ROE – 60%
Kwality Pharma is a dosage-based pharmaceutical company. It was founded in Amritsar, Punjab. The ISO-certified company manufactures tablets, capsules, liquid injectables, and ointments.
The company’s share price has more than doubled in the past one year, with a CMP of ₹347 vs ₹109 a year ago. That’s a price spike of 220% in one year. The pharma company declared a record profit of ₹94 crores in September 2021, vs ₹ 8 crores in March 2021. This was achieved despite having a market cap of just ₹ 361 crores.
Top ROE Stocks India 2022 #6 – Colgate – Palmolive India
7 Year ROE – 59.74%
For less than ₹100, you could have owned one share of Colgate-Palmolive India, the Indian subsidiary of Colgate-Palmolive. That’s less than the price of a tube of toothpaste today, which is what the company is known for worldwide.
The Indian listed company represents one of just three listed companies under Colgate, one of them being the parent company itself. Three-year ROE is at 67.3% and managed to stay consistent even during the peak of the pandemic.
Apart from the stocks listed above, here are some of the other companies with a higher than average ROE in India. Nestle India, Gujarat Themis Biosyn, and Hinduja Global all have an average ROE above 52%.
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