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)
2. NELCO Ltd
Established in 1940 and is another notable small-cap stock from the Tata Group. Nelco Limited is engaged in the business of network systems, automation, and industrial controls. (4/16)
Pros
It has a good average ROE for the last three years, at 30.21%
It has an ideal debt to equity ratio.
Its promoters holdings are good at 50.09%
It does not have pledged shares. (5/16)
Cons
Its PE ratio is higher than industry average.
Its current assets are lower than its current liabilities, as indicated by its current ratio.
Its quick ratio is unfavourable indicating lower short term solvency.
Its average net profit growth for the last 3 years is weak (6/16)
3. Tata Metaliks Ltd
It is another small-cap stock from the Tata Group. It is one of India’s leading producers of ductile iron (DI) pipes and high-quality pig iron (PI). (7/16)
Pros
It has a good average ROE for the last three years, at 25.14%.
It has a low debt to equity ratio of 0.01.
It has a good current ratio of 2.32.
Its promoters holdings are high at 60.03%
It does not have pledged shares. (8/16)
Cons
Its PE ratio is higher than the industry average.
It has had weak revenue growth for the last three years with an average of 0.76%.
It has had weak net profit growth for the last three years with an average of 11.36% (9/16)
4. Tata Steel Long Products Ltd
This small-cap stock from the Tata Group is engaged in manufacturing high alloy steel primarily for the wire rope industry and for the auto sector.
Its special steel is used in other industries like construction and capital goods as well. (10/16)
Pros
The company’s PE is lower than the average industry PE.
It has an ideal debt to equity ratio.
It has had a good revenue growth for the last three years with an average of 81.06%.
Its net profit margin is higher than historical 3 years NPM Margin. (11/16)
It has had a good net profit growth for the last three years with an average of 59.53%
Its promoters holdings are high at 74.91%
It does not have pledged shares. (12/16)
Cons
Its average ROE for the last 3 years is 1.18%.
Its current ratio is low, indicating that it has fewer assets as compared to its liabilities.
Its quick ratio is lower than 1 which reflects lower short term solvency. (13/16)
5. Rallis India Limited
Rallis India is presently a Tata Enterprise and a subsidiary of Tata Chemicals. It has a business presence in the farm essentials vertical is one of India’s leading crop care companies. (14/16)
Pros
The company’s PE ratio is lower than the industry average.
It has a low debt to equity ratio of 0.03.
It has a good current ratio of 1.81.
Its promoter’s holdings are good at 50.09%
It does not have pledged shares. (15/16)
Cons
Its average ROE for the last 3 years is 13.79%
It has a quick ratio of lower than 1 which reflects lower solvency in the short term.
It has a weak revenue growth for the last 3 years, at 10.7%.
It has had a weak net profit growth for the last three years, at 10.89% (16/16)
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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)
#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)