List of profit-making smallcap companies with high ROCE and low PE

resr 5paisa Research Team

Last Updated: 9th December 2022 - 12:14 pm

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Investing in stocks with strong financials is always a prudent strategy. In this post, we would be listing top profit-making smallcap stocks having high ROCE and low PE. 

Our fiscal deficit climbed to 82.7% of the FY22 target in April 2021-February 2022. Moreover, it amounted to 76% of the full-year target for the corresponding period of FY21. Due to state transfers, there was a huge increase in the fiscal deficit in February. In this regard, the Centre transferred Rs 2.42 lakh crore to states in February 2022 as compared with Rs 95,082 crore in January 2022 and Rs 35,281 crore in February 2021.

Following the overnight losses on wall street, the Asia-Pacific indices declined Friday morning. This can also be attributed to their worst quarter since the bear market during the pandemic, and tightening of monetary policy by Federal Reserve led to increasing economic risks and the conflict between Russia and Ukraine.

Yesterday Nifty 50 ended marginally in red after swinging between gains and losses as it was monthly expiry. Nifty 50 was down 0.19% at 17,465 at closing bell.

After a good rise, looks like Nifty 50 is consolidating. Post the subdued beginning, the new F&O expiry series and a new fiscal year is likely to witness some upward momentum. Having said that, it would be very interesting to see whether or not this will take Nifty 50 beyond the 17,800 level. On the southwards, 17,300 would act as good support.

Said that, it is always prudent to hunt for stocks that are financially strong and are available at attractive valuations. In this article, we have listed top five profit-making smallcap stocks with high Return on Capital Employed (ROCE) and low price to earnings (PE).

Stocks 

CMP (Rs) 

PE TTM 

3-Year Average ROCE (%) 

2-Year Net Profit Growth (%) 

Quarterly Net Profit Growth YoY (%) 

Redington (India) Ltd. 

149.9 

9.5 

20.7 

148.9 

105.0 

Cholamandalam Financial Holdings Ltd. 

614.2 

14.4 

22.2 

22.2 

17.0 

IIFL Finance Ltd. 

293.0 

10.0 

21.5 

69.8 

15.5 

Jindal Stainless (Hisar) Ltd. 

402.1 

5.5 

20.6 

541.9 

90.6 

EID Parry (India) Ltd. 

450.2 

13.4 

25.6 

45.3 

113.8 

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