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Slideshow | These 12 companies maintained RoE above 20% in last 3 fiscal years

Return on equity, or RoE, is calculated by dividing net income by shareholder’s equity

August 24, 2020 / 04:08 PM IST
Return on Equity (ROE) is a key aspect of fundamental analysis. The ratio measures how effectively management is using a company’s assets to create profits. Moneycontrol analysis the companies which have been able to maintained RoE over 20 percent in each of the last three fiscals years and share price has been doubled in the last 3 years. We considered stocks with a market cap of over Rs 1000 crore. Note: RoE is not the only metric an investor should review when evaluating a stock. (Data Source: ACE Equity)
When investing in stocks, many take into account ratios to judge a company's financial health. Return on Equity (ROE) is one such ratio. It is calculated by dividing net income by shareholder’s equity. An analysis of data showed there are 12 companies that maintained RoE of over 20 percent in each of the last three financial years. Incidentally, their share prices doubled in last three year. We considered stocks with a market cap of over Rs 1,000 crore. (Data Source: ACE Equity)
GMM Pfaudler Stake
GMM Pfaudler  | The company's RoE for FY18: 20.25%, FY19: 20.37, and for FY20: 23.25%. In last 3 years, the share price has risen 989 percent to Rs 6,003 as on August 21, 2020.
Alkyl Amines Chemicals  | The company's RoE for FY18: 22.61%, FY19:  23.90, and in FY20: 43.15%. In the last 3-year, the share price has risen 717 percent to Rs 3192 on August 21, 2020.
Alkyl Amines Chemicals  | The company's RoE for FY18: 22.61%, FY19: 23.90, and for FY20: 43.15%. In last 3 years, the share price has risen 717 percent to Rs 3192 as on August 21, 2020.
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Abbott India  | The company's RoE for FY18: 26.35%, FY19: 24.66, and for FY20: 27.09%. In last 3 years, the share price has risen 300 percent to Rs 16846 as on August 21, 2020.
Vaibhav Global  | The company's RoE for FY18: 23.49%, FY19:  25.42, and in FY20: 26.93%. In the last 3-year, the share price has risen 229 percent to Rs 1703 on August 21, 2020.
Vaibhav Global  | The company's RoE for FY18: 23.49%, FY19: 25.42, and for FY20: 26.93%. In last 3 years, the share price has risen 229 percent to Rs 1,703 as on August 21, 2020.
Larsen & Toubro Infotech  | The company's RoE for FY18: 32.82%, FY19:  35.20, and in FY20: 29.92%. In the last 3-year, the share price has risen 214 percent to Rs 2366 on August 21, 2020.
Larsen & Toubro Infotech  | The company's RoE for FY18: 32.82%, FY19:  35.20, and for FY20: 29.92%. In last 3 years, the share price has risen 214 percent to Rs 2,366 as on August 21, 2020.
Nestle India  | The company's RoE for FY18: 36.56%, FY19:  45.30, and in FY20: 70.27%. In the last 3-year, the share price has risen 150 percent to Rs 16557 on August 21, 2020.
Nestle India  | The company's RoE for FY18: 36.56%, FY19:  45.30, and for FY20: 70.27%. In last 3 years, the share price has risen 150 percent to Rs 16,557 as on August 21, 2020.
Tasty Bite Eatables  | The company's RoE for FY18: 30.63%, FY19:  26.27, and in FY20: 28.02%. In the last 3-year, the share price has risen 140 percent to Rs 13159 on August 21, 2020.
Tasty Bite Eatables  | The company's RoE for FY18: 30.63%, FY19: 26.27, and for FY20: 28.02%. In last 3 years, the share price has risen 140 percent to Rs 13159 as on August 21, 2020.
Dr. Lal Pathlabs  | The company's RoE for FY18: 25.32%, FY19:  23.76, and in FY20: 23.74%. In the last 3-year, the share price has risen 129 percent to Rs 1844 on August 21, 2020.
Dr. Lal Pathlabs  | The company's RoE for FY18: 25.32%, FY19: 23.76, and for FY20: 23.74%. In last 3 years, the share price has risen 129 percent to Rs 1844 as on August 21, 2020.
Garware Technical Fibres  | The company's RoE for FY18: 21.40%, FY19: 21.17, and for FY20: 20.23%. In last 3 years, the share price has risen 124 percent to Rs 1945 as on August 21, 2020.
Garware Technical Fibres  | The company's RoE for FY18: 21.40%, FY19: 21.17, and for FY20: 20.23%. In last 3 years, the share price has risen 124 percent to Rs 1945 as on August 21, 2020.
Infosys  | The company's RoE for FY18: 24.09%, FY19: 23.80, and for FY20: 25.62%. In last 3 years, the share price has risen 117 percent to Rs 949 as on August 21, 2020.
Infosys  | The company's RoE for FY18: 24.09%, FY19: 23.80, and for FY20: 25.62%. In last 3 years, the share price has risen 117 percent to Rs 949 as on August 21, 2020.
L&T Technology Services  | The company's RoE for FY18: 30.36%, FY19: 35.51, and for FY20: 31.77%. In last 3 years, the share price has risen 116 percent to Rs 1,603 as on August 21, 2020.
L&T Technology Services  | The company's RoE for FY18: 30.36%, FY19: 35.51, and for FY20: 31.77%. In last 3 years, the share price has risen 116 percent to Rs 1,603 as on August 21, 2020.
Sonata Software  | The company's RoE for FY18: 30.90%, FY19:  35.07, and in FY20: 38.65%. In the last 3-year, the share price has risen 102 percent to Rs 312 on August 21, 2020.
Sonata Software  | The company's RoE for FY18: 30.90%, FY19:  35.07, and for FY20: 38.65%. In last 3 years, the share price has risen 102 percent to Rs 312 as on August 21, 2020.
Ritesh Presswala
first published: Aug 24, 2020 04:08 pm

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