SYNOPSIS: This article highlights five mid-cap stocks that have consistently delivered strong RoE over the years, reflecting efficient capital use and sustained profitability across sectors.
Return on Equity (RoE) is a key financial metric that shows how efficiently a company uses shareholders’ investments to generate profits. In simple terms, it helps investors understand how well a business is converting equity funding into earnings through its everyday operations.
RoE is calculated by dividing a company’s net income by its total shareholders’ equity and is expressed as a percentage. The metric is most meaningful when both net income and equity are positive, as it then offers a clearer picture of true profitability and capital efficiency. Below are a few mid-cap stocks that have delivered consistently high RoE for 3-4 consecutive years:
With a market cap of Rs. 59,589 crores, the stock closed in red at Rs. 28,042.9 on Friday, down by over 1 percent, as against its previous closing price of Rs. 28,334.25 on BSE.
The company has delivered consistently strong returns on equity over the past four years, with RoE standing at 28.32 percent in FY22, 29.77 percent in FY23, rising again to 32.47 percent in FY24, and further improving to 33.41 percent in FY25.
Abbott India Limited is one of the leading multinational pharmaceutical companies in India and operates with an owned manufacturing facility in Goa and various independent contract/third-party manufacturers based across the country. It sells its products through independent distributors primarily within India.
KPIT Technologies Limited
With a market cap of Rs. 32,427 crores, the stock closed in green at Rs. 1,182.85 on Friday, up by around 0.11 percent, as against its previous closing price of Rs. 1,181.55 on BSE.
The company has delivered consistently strong returns on equity over the past four years, with RoE standing at 20.94 percent in FY22, 23.06 percent in FY23, rising again to 27.7 percent in FY24, and further improving to 28.83 percent in FY25.
KPIT Technologies is a global partner to the automotive and mobility ecosystem for making software-defined vehicles a reality. It is a leading independent software development and integration partner.
With a market cap of Rs. 56,086.4 crores, the stock closed in red at Rs. 880.35 on Friday, down by around 2 percent, as against its previous closing price of Rs. 895.65 on BSE.
The company has delivered consistently strong returns on equity over the past four years, with RoE standing at 21.39 percent in FY22, 20.57 percent in FY23, rising again to 27.87 percent in FY24, and further improving to 30.53 percent in FY25.
Nippon Life India Asset Management Limited acts as the investment manager to Nippon India Mutual Fund and also provides Portfolio Management Services and investment advisory services, including services regulated by SEBI and, where applicable, the International Financial Services Centres Authority.
Dixon Technologies (India) Limited
With a market cap of Rs. 72,256 crores, the stock closed in red at Rs. 11,906.6 on Friday, down by around 1 percent, as against its previous closing price of Rs. 11,985.65 on BSE.
The company has delivered consistently strong returns on equity over the past four years, with RoE standing at 19.07 percent in FY22, 19.88 percent in FY23, rising again to 21.69 percent in FY24, and further improving to 36.39 percent in FY25.
Dixon Technologies, one of the leading providers of Electronic Manufacturing Services (EMS) in India, is primarily involved in the business of manufacturing electronic goods such as consumer electronics like LED TVs, home appliances, lighting products, mobile phones, closed-circuit television cameras (CCTVs), refrigerators, telecom products, and others.
With a market cap of Rs. 55,939 crores, the stock closed in green at Rs. 2,056.7 on Friday, up by around 1 percent, as against its previous closing price of Rs. 2,045.7 on BSE.
The company has delivered consistently strong returns on equity over the past three years, with RoE standing at 61 percent in FY23, rising to 70.61 percent in FY24, and further improving to 86.32 percent in FY25.
Colgate-Palmolive (India) Limited is engaged in the business of manufacturing/trading of toothpaste, tooth powder, toothbrush, mouthwash and personal care products.
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