roe: Companies with high ROEs could make for better bets during volatility

Out of the 26 stocks, 20 have given a return between 20% and 900% in the previous three years, while 19 have returned between 40% and 3,200% in the past five years.

Synopsis

As investors brace for earnings downgrades over the next few quarters, the focus is likely to be on companies with stronger profitability track record. Out of the top 1,000 Indian stocks by market capitalisation, 26 have posted a return on equity (ROE) – a measure of companies’ use of shareholder money – of more than 25% each in the last five years.

Mumbai: As investors brace for earnings downgrades over the next few quarters, the focus is likely to be on companies with stronger profitability track record. Out of the top 1,000 Indian stocks by market capitalisation, 26 have posted a return on equity (ROE) – a measure of companies’ use of shareholder money – of more than 25% each in the last five years. Many of these stocks have corrected an average of 30% from their 52-week highs. Analysts

BY

ET Bureau

2 mins read, Last Updated:

Jun 14, 2022, 07:23 AM IST

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