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

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

by 5paisa Research Team Last Updated: 2022-03-04T15:29:50+05:30

In this present market situation, accumulating stocks with strong financials is prudent. In this post, we would be listing top profit-making smallcap stocks having high ROCE and low PE.

The impact of the rising prices of commodities on inflation, currency, interest rates and corporate performance is more evident as Nifty 50 drowned for the second straight session on March 3, 2022. It gave up all the gains made in the first half of the trading session and closed at 16,498, down 0.65%.             

On the technical front, Nifty 50 witnessed a bearish engulfing candlestick pattern. However, as it was at the lows so is not that strong. The advance-decline ratio remained positive. Even the smallcap index ended positive signifying that the Foreign Portfolio Investors (FPI) selloff is mostly in largecap stocks. In the near-term Nifty is likely to trade between the range of 16,248 to 16,748.

On Thursday, the US stock index futures stumbled in the latter part of the trading session along with the Asian markets as the reports were out that Europe’s largest nuclear power plant that is situated in Ukraine was on fire, post Russian shelling. This led to rising fears of an unprecedented nuclear disaster.

Said that, as the tensions around the globe are rising and the stock markets taking the negative tone, 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 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 (%) 

Brightcom Group Ltd. 

102.8 

12.9 

20.9 

158.2 

168.0 

Redington (India) Ltd. 

154.1 

9.8 

20.7 

148.9 

105.0 

Cholamandalam Financial Holdings Ltd. 

639.5 

15.0 

22.2 

22.2 

17.0 

IIFL Finance Ltd. 

294.4 

10.0 

21.5 

69.8 

15.5 

Jindal Stainless (Hisar) Ltd. 

363.4 

5.0 

20.6 

541.9 

90.6 


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