3 High Return on equity (ROE) Stocks in India: Large Cap
A healthy sign for the company is when the ROE has grown consistently over time. This will prove the management’s ability to reinvest its earnings properly with the ultimate goal of increasing the shareholder’s value.(1/7)
1. Nestle India
It is an Indian subsidiary of Swiss-based multinational company Nestle. It is a prominent player in the food & beverage sector.
The company has been able to deliver exceptional results over the few years. The average five-year ROE for the company is 58.17%.(2/7)
On a yearly basis, from 2017 to 2021, the company has a return on equity of 32.83%, 36.56%, 45.3%, 70.39%, and 105.76%, respectively. Superior market share along with strong brand recognition gives Nestle the edge over its peers. (3/7)
2. Procter & Gamble Hygiene and Health Care Ltd.
P&G Hygiene is an Indian arm of American multinational P&G. It is one of the leading fast-moving consumer goods companies which specializes in personal care and hygiene products. It is also a debt-free company. (4/7)
The company maintained an average 5 year ROE of 52.2%. The ROE numbers from 2017 to 2021 are 39.95, 57.17, 49.79, 42.74, and 71.64, respectively.
The consistency in such high returns can be attributed to its focus on driving consumer meaningful innovations. (5/7)
3. Colgate-Palmolive (India) Ltd.
It is an Indian subsidiary of American consumer goods company Colgate Palmolive.
The ROE for this large-cap company from 2017-2021 has been 50.48%, 48.32%, 52.37%, 53.75%, & 75% respectively. The five-year average ROE sums up to be 55.98%.(6/7)
The strong performance is backed by its strong leadership with significant market share and continuous focus on innovation by offering new products. (7/7)
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1. Tata Coffee Ltd
Tracing its roots to 1992, It is one of the largest integrated coffee cultivation & processing companies in the world. It is foremost producer of specialty coffee & the second-largest exporter of instant coffee in India (1/16)
Pros
The company’s PE ratio is lower than the industry PE.
Its debt to equity ratio is ideal.
It has a good current ratio of 1.14.
Its promoter’s holdings are stable at 57.48% for the last 4 quarters.
It does not have pledged shares. (2/16)
Cons
Its quick ratio is lower than 1 which reflects lower solvency in the short term.
It has had weak net profit growth for the last three years with an average of 7.82%.
Its average ROE for the last three years is 12.33% (3/16)
#Zerodha is India’s biggest stockbroker with a market share of 18.33%.
A startup like this can get ridiculously high valuations in an IPO. (1/4)
But then why isn't Zerodha coming up with an IPO?
Here’s what Nithin Kamath, founder and CEO, Zerodha has to say about this “An IPO is the beginning, & not the end!”
Along with multifold benefits IPOs also increase the obligations and pressure for companies. (2/4)
For stocks to outperform, companies have to do well. The core team will be focused on these new targets instead on focusing on the company’s mission.
Zerodha on the other hand has never set revenue or growth targets. They believe in doing right by the customers. (3/4)
Indian Drone Industry overview :
Drone aka Unmanned Ariel vehicles (UAVs) are anticipated to be the next big thing. India is already anticipated to become the world's third-largest Drone market by 2025.(1/7) #drones#Dronestocks
1. Infoedge India
It is an Indian pure play internet company and parent of famous websites like Naukri,99Acres,etc. It has invested in Skylark Drones,a startup that works on building the core infrastructure for the global drone ecosystem. It has an MCap of Rs. 58,247.77 Cr (2/7)
2. Zomato Ltd
It is an Indian multinational restaurant aggregator and food delivery company. To facilitate food delivery using Drones, it acquired Techeagle to build a delivery network using hybrid multi-rotor drones. It has an MCap of Rs. 79,107.47 Cr (3/7)