Top profit-making midcap companies with high ROCE and low PE

Top profit-making midcap companies with high ROCE and low PE

by 5paisa Research Team Last Updated: 2022-03-23T12:17:41+05:30

Nothing is more prudent than accumulating financially strong stocks amid volatility in the market. In this post, we would be listing top profit-making mid-cap stocks having high ROCE and low PE.

A short covering spell has assisted Nifty 50 to surge over 300 points from the intraday lows amid the report that Volodymyr Zelensky, the Ukrainian President was prepared to discuss a commitment from Ukraine not to seek NATO membership in exchange for a cease-fire, the withdrawal of Russian troops and a guarantee of Ukraine’s security. Furthermore, even the statement from the Reserve Bank of India (RBI) came stating it will support the recovery of the economy by ensuring plenty of liquidity. This indicated that the inflation that is presently trading above RBI’s target inflation was not as much of a concern.

As against volumes on March 21, 2022, the volumes yesterday were marginally lower. According to the Advance-Decline Ratio, declining stocks outpaced advancing stocks. In the F&O segment, stocks having 50% higher volumes than March 21, 2022, were in focus.

Yesterday, Nifty was almost over 1,650 points up from the recent lows of 15,671 recorded on March 8, 2022. On the sectoral front, technology, oil & gas and auto were the top gainers, whereas reality and FMCG made to the top losers list. Having said that, for today’s trade, the support and resistance levels are placed at 17,000 and 17,350, respectively.

The tensions between Ukraine and Russia are yet to submerge and even the stock market is still consolidating with a negative bias. Hence, in such a situation, it makes complete sense to hunt for stocks that are financially strong and are available at very attractive valuations.

In this article, we have listed the top three profit-making midcap 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 (%) 

Muthoot Finance Ltd. 

1,369 

13.6 

30.3 

23.6 

3.5 

Hindustan Aeronautics Ltd. 

1,415 

13.2 

17.7 

102.6 

9.4 

Sun TV Network Ltd. 

460 

10.5 

32.4 

22.5 

5.7 

 


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