Top profit-making businesses with high ROCE and low PE

Top profit-making businesses with high ROCE and low PE

by 5paisa Research Team Last Updated: May 17, 2022, 11:56 AM IST

Although it's a postive day for headline indices today, but markets are still in the bear grip and accumulating companies with strong fundamentals at cheap valuation makes sense. Read on to find out more about such stocks.

Nifty 50 on May 16, 2022, opened nominally higher and surged in its early trade and was consolidating throughout the day, but finally ended the day with modest gains. Nifty 50 ended the day in green at 15,842, up 0.4% (60 points).

Investors gauged the economic outlook due to higher food and fuel costs, tightening monetary policy and China’s push to reduce spread of Covid-19, Asian indices surged on Tuesday.

On Monday Dow Jones Industrial Average ended the session with modest gains, while in the final trading hour, S&P 500 gave up all its gains. Markets extended selloff as the data from the US and China raised concerns over global economy.

New York Fed’s Empire State business conditions index declined 36.2 points to negative 11.6 in May, while economists had expected the index to fall to a reading of 16.5. New York Fed’s Empire State business conditions index is a measure to gauge the manufacturing activity of the state.

Nifty 50 formed a double bottom pattern, but with immediate resistance being placed at 16,090. Moreover, to move further towards 16,200 to 16,400 levels, a crucial resistance levels, Nifty 50 needs to decisively breach 16,090 levels on closing basis. Having said that, Nifty 50’s 50-Day Exponential Moving Average (EMA) and 200-Day EMA is nearing for a crossover. If 50-Day EMA crosses the 200-Day EMA from above, then bearishness in the markets likely to intensify. However, as of now the levels of 15,700 to 15,850 would act as a solid support.

Stocks 

CMP (Rs) 

Market Cap (Rs Crore) 

PE TTM 

ROCE Annual 3-Yr Avg. (%) 

Net Profit 2-Yr Growth (%) 

Net Profit QTR Growth YoY (%) 

JSW Steel Ltd

613.7 

1,48,344.8 

6.9 

15.1 

1,964.9 

62.5 

Hindustan Aeronautics Ltd

1,640.2 

54,844.6 

10.8 

17.7 

148.3 

91.4 

Indus Towers Ltd. 

191.0 

51,473.3 

8.1 

15.9 

181.5 

34.1 

Muthoot Finance Ltd. 

1,152.7 

46,261.1 

11.5 

30.3 

23.6 

3.5 

Petronet LNG Ltd

211.0 

31,650.0 

9.2 

24.0 

111.9 

24.0 

About the Author

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Disclaimer

Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial. Also, The
SENSEX
53,177.45
16.17 (0.03%)
Nifty 50
15,850.20
18.15 (0.11%)
Nifty Bank
33,642.45
-168.80 (-0.50%)

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SENSEX
53,177.45
16.17 (0.03%)
Nifty 50
15,850.20
18.15 (0.11%)
Nifty Bank
33,642.45
-168.80 (-0.50%)

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