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High ROE Stocks

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Here you get all NSE/BSE stocks with a return on equity (ROE) of 15% or higher from the last year. These stocks are from companies that efficiently generate profit from their equity base, making them attractive to investors looking for companies with strong financial performance and effective use of capital.

List of High Return on Equity Stocks

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Name
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Change %
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PE Ratio
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1M Returns
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1 Yr Returns
3 Yr Returns
5 Yr Returns
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ROE
ROCE
EPS
50 DMA
200 DMA
RSI
MTF
Margin Pledge

B

Bharti Airtel

1,944.80

0.27%32,16,62211,08,94538.1031.44 2,045.801,511.002.77%4.85%17.03%148.46%313.64%9.800.80%8.11%18.01%21.421,915.941,775.4850.9978.00%91.00%

A

Adani Enterprises

2,402.80

0.14%3,68,8382,77,32779.9930.89 3,211.002,025.002.97%-3.44%-19.24%-36.41%718.11%5.950.05%7.45%10.92%37.442,412.672,400.9155.7871.37%75.00%

D

DLF

786.55

-0.03%16,13,7861,94,69646.0026.50 929.00601.202.30%-7.62%-8.63%104.22%401.47%4.580.76%4.13%5.62%11.50786.54759.9854.6376.00%80.00%

H

Hindustan Zinc

458.50

-0.81%29,11,3361,93,73118.9523.70 575.40378.157.35%-5.73%-6.60%66.49%112.32%14.656.28%51.06%62.89%19.26433.66446.3964.8058.00%80.00%

V

Vedanta

454.80

-1.41%2,49,89,0801,77,84413.6723.70 526.95363.003.79%-0.90%1.11%61.48%238.64%4.389.43%17.92%28.36%13.95440.80442.4559.6475.86%80.00%

H

Hindalco Industries

749.35

-0.87%31,71,3301,68,3969.8221.86 772.65546.454.93%16.78%9.71%81.81%326.13%1.370.65%9.57%12.85%48.78701.65652.9968.1376.00%88.57%

D

Divis Laboratories

6,050.50

-0.80%3,28,8641,60,62270.1638.80 7,071.504,955.00-1.85%-7.46%10.97%67.16%88.42%10.810.49%11.79%18.85%63.066,353.516,116.4642.9876.00%80.00%

A

Adani Green Energy

978.50

-0.95%5,83,3811,54,99882.2239.80 2,091.00758.003.91%0.10%-49.93%-58.30%46.76%11.38-7.22%8.15%8.71972.49981.3960.7168.03%75.00%

T

Tech Mahindra

1,542.40

0.71%15,68,3761,51,02333.0334.21 1,807.701,209.404.84%-10.25%-6.61%48.38%96.00%5.472.94%8.83%18.78%25.741,515.741,576.8652.9376.00%89.93%

P

Punjab National Bank

111.67

2.98%2,66,87,7741,28,3427.509.78 115.7185.464.59%5.47%3.37%176.41%235.85%0.962.68%8.25%5.75%10.66107.10101.8861.1276.00%80.00%

M

Mazagon Dock Shipbuilders

2,991.40

1.54%18,80,8721,20,66754.7832.98 3,775.001,918.059.21%-9.51%42.68%1,201.00%3,379.18%14.970.59%21.98%34.51%96.042,849.522,698.0563.1166.44%78.40%

L

Lodha Developers

1,200.00

-0.06%10,78,1361,19,75440.4526.50 1,531.001,035.15-3.77%-17.01%-6.50%132.86%415.84%6.070.35%8.86%18.64%19.371,270.731,287.4941.4372.22%80.00%

S

Siemens

3,309.60

-0.13%4,66,1611,17,86268.4447.56 4,041.622,269.906.14%-0.36%-1.57%125.02%430.45%9.570.36%14.98%22.43%68.993,139.703,053.5562.2374.98%80.00%

S

Shriram Finance

620.80

0.44%38,44,4911,16,74313.6651.83 730.45493.35-0.96%-6.65%-9.36%141.20%374.36%2.061.60%14.88%10.65%201.17626.93621.8755.3875.03%85.00%

A

ABB

5,386.30

0.70%1,64,2131,14,14063.0347.56 8,940.604,684.456.92%-10.74%-31.59%70.57%487.83%15.760.83%21.00%35.54%75.955,346.945,832.9560.9075.96%80.00%

A

Apollo Hospitals

7,876.00

0.30%1,95,4651,13,24571.7547.27 7,980.006,001.000.68%12.41%12.39%82.81%343.19%13.760.16%12.53%15.53%72.057,560.787,040.0156.0175.00%91.00%

I

Indian Hotels Company

779.45

0.10%15,24,4511,10,94965.0542.93 894.90645.900.51%3.01%12.60%143.77%706.63%9.930.29%11.86%17.74%9.03760.85781.8963.4376.00%80.00%

I

Indus Towers

353.00

-1.29%48,86,47193,1279.8922.96 433.60312.554.56%-9.97%-17.99%78.28%79.74%2.96-22.32%28.12%24.54364.26364.0857.1575.51%80.00%

L

Lupin

2,033.70

-0.88%5,39,05892,87825.3342.14 2,402.901,795.203.32%4.61%-10.43%217.15%96.09%5.450.58%13.47%21.29%49.641,941.902,025.8267.4576.00%80.00%

B

BSE

2,210.20

0.50%22,29,17689,76356.3132.98 3,030.001,104.99-11.41%-17.05%98.90%923.81%3,343.75%20.190.35%22.34%30.53%44.382,391.782,109.5843.5465.00%76.54%

I

Info Edge

1,374.40

1.63%21,35,24089,05086.4932.98 1,825.781,157.001.54%-6.85%-11.96%71.14%95.40%2.510.44%1.88%4.80%53.821,384.201,471.6648.1875.95%80.00%

I

ICICI Prudential Life Insurance

598.50

-0.86%7,68,08486,55169.1951.83 796.80525.80-5.96%-6.53%-20.20%7.44%40.33%6.980.14%7.73%0.44%6.03624.04618.5645.3776.00%80.00%

B

Bharti Hexacom

1,715.70

-1.18%1,31,74185,78560.4131.44 2,052.901,234.00-0.83%-1.35%24.94%110.96%110.96%14.630.58%10.87%20.12%8.381,783.281,589.4937.0360.00%75.00%

V

Vodafone Idea

7.75

-2.39%47,13,53,92883,966-31.44 13.286.1219.97%17.42%-40.93%-14.84%-31.11%-1.22-29.99%-1.99%-7.067.5571.5465.99%60.00%

B

Bharat Heavy Electricals

233.45

0.54%33,90,34481,289279.6447.56 291.10176.007.77%-7.49%-11.86%294.34%564.15%3.270.22%1.15%3.75%0.29233.13227.9357.3972.83%80.00%

F

Fortis Healthcare

961.80

-0.50%11,88,31972,61279.0347.27 983.20572.002.51%26.30%59.28%199.58%614.03%8.190.10%7.54%9.86%8.50884.92730.3771.1375.00%80.00%

P

Prestige Estates Projects

1,649.30

1.48%8,59,55071,040132.7426.50 1,972.001,048.051.51%-2.68%-13.98%259.09%525.80%4.540.11%10.40%8.96%33.421,633.201,485.6050.8072.15%80.00%

V

Vishal Mega Mart

148.49

-1.21%86,71,01969,217102.2130.89 157.6095.991.03%17.13%32.66%32.66%32.66%10.84--13.04%-143.33-55.0065.00%70.00%

N

Nykaa

242.08

-0.68%17,94,07969,208-30.89 249.28154.9010.45%24.74%21.49%8.58%-34.15%53.59-1.78%12.91%0.14221.06190.2664.1775.00%75.00%

Y

Yes Bank

20.97

-0.19%4,35,75,88565,76824.1415.21 23.8416.029.85%5.17%-10.38%28.26%48.72%1.38-3.05%5.95%0.4619.6519.2167.9070.00%75.00%

P

Patanjali Foods

600.90

0.10%10,15,98965,34953.6717.66 670.33523.331.41%8.74%-2.62%-54.85%245.34%5.750.55%1.75%15.86%25.98602.90598.3249.3375.00%75.00%

A

Aurobindo Pharma

1,096.70

0.47%6,45,25963,69718.8742.14 1,568.301,010.000.68%-1.17%-29.36%111.11%35.26%1.96-10.62%15.74%61.221,091.471,156.8259.4676.00%80.00%

C

Colgate Palmolive

2,339.90

-0.67%2,87,49463,64245.9653.13 3,890.002,151.005.16%-1.77%-35.89%48.10%67.43%38.482.17%70.62%111.07%51.992,322.672,524.5152.8178.00%80.00%

B

Bharat Dynamics

1,624.00

1.18%22,91,74859,530104.8833.36 2,096.60890.001.15%-14.68%36.04%248.51%934.07%14.670.29%10.97%10.19%15.771,613.761,454.7259.6970.06%80.00%

G

Glenmark Pharmaceuticals

2,041.10

-1.73%4,17,56657,60043.9642.14 2,284.801,275.503.40%23.46%19.15%451.20%314.27%6.620.12%3.84%15.93%-2,046.181,629.6760.9875.73%80.00%

B

Bank of India

119.55

1.72%91,25,70454,4275.429.78 130.2490.054.08%-0.08%6.47%127.50%163.62%0.743.45%9.28%5.62%15.14114.03110.4362.0170.00%75.00%

K

Kalyan Jewellers

523.60

2.96%1,25,10,77054,03065.4147.17 795.40399.400.65%1.76%-26.55%435.93%596.28%10.910.30%14.24%20.89%6.12550.25556.6040.6770.00%80.00%

A

AU Small Finance Bank

707.05

-0.58%31,55,32652,67224.2615.21 841.00478.35-7.16%-8.55%-1.72%8.21%100.61%3.110.14%38.28%16.45%23.05747.38654.4044.1676.00%80.00%

P

Page Industries

45,320.00

-0.03%10,03050,54966.0834.27 50,590.0038,850.001.41%-1.11%4.47%-6.82%138.44%35.911.99%35.64%62.78%516.6446,042.9045,401.9843.8178.00%80.00%

I

ITC Hotels

242.18

-1.19%25,52,59950,40274.9542.93 261.62155.103.95%13.23%40.93%40.93%40.93%4.77--7.87%-237.61-53.3370.00%75.00%

C

Cochin Shipyard

1,884.00

3.43%41,47,76849,56457.0032.98 2,545.001,180.209.43%-14.06%6.89%840.45%984.13%8.590.54%-19.01%-1,771.481,643.8061.650.00%78.52%

L

Laurus Labs

891.40

-0.39%9,57,39048,06994.9342.14 922.50427.052.97%34.95%77.80%75.66%217.97%10.800.13%4.09%12.08%2.75852.85664.6363.5575.20%80.00%

V

Voltas

1,402.70

-0.84%4,78,05046,41372.2666.06 1,944.901,135.003.97%8.38%-26.33%55.99%102.22%7.180.49%4.24%17.53%13.811,360.201,406.3759.0076.00%80.00%

G

GlaxoSmithKline Pharmaceuticals

2,738.80

0.02%1,57,31946,39748.9951.80 3,515.701,921.00-1.98%-15.83%-2.15%94.43%55.30%23.771.97%33.19%57.25%45.472,935.412,718.7242.6866.81%80.00%

H

HUDCO

223.91

-0.12%40,39,31944,82516.1418.50 262.70158.856.15%-0.35%-8.65%510.11%555.67%2.501.85%11.02%8.50%11.13217.95219.3362.8269.35%80.00%

P

P&G Hygiene and Health Care

13,345.00

-0.18%8,32943,31952.2553.13 17,011.0012,105.60-0.25%-0.13%-19.76%-9.01%33.76%58.751.31%71.68%102.67%229.5713,295.4013,973.6747.5673.50%80.00%

G

Godrej Industries

1,216.40

-0.44%1,73,74240,96340.8640.69 1,390.00766.00-4.51%-7.77%-0.89%162.49%196.57%4.06-3.94%10.53%6.071,177.501,117.6060.1865.77%80.00%

R

Radico Khaitan

3,006.50

0.40%1,73,16940,23499.1734.24 3,021.001,845.505.44%15.46%38.21%186.29%557.09%14.550.13%10.75%17.41%20.282,800.252,494.3664.8869.04%80.00%

B

Blue Star

1,937.90

0.72%3,51,09939,84674.0666.06 2,417.001,521.001.16%16.05%2.47%268.77%492.21%12.910.47%15.86%25.16%24.341,836.991,873.2053.3074.31%80.00%

N

NALCO

212.45

-1.86%66,77,42139,0196.9421.86 262.99137.7512.81%14.73%13.75%185.55%516.69%2.234.85%10.93%36.82%10.50194.13191.8070.3271.97%80.00%

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Please Note:

  • PE Ratio: Share Price/Earning Per Share
  • PB Ratio: Market Cap/Book Value
  • ROE: Net Income/Shareholder's Equity
  • ROCE: Earning Before Interest & Tax (EBIT)/Capital Employed
  • EPS: (Net Income-Preferred Dividend)/Weighted Average Number of Shares Outstanding
  • 50 DMA: Simple Moving Average of the past 50 days closing prices for a stock.
  • 200 DMA: Simple Moving Average of the past 200 days closing prices for a stock.
  • RSI: Relative Strength Index (14) is a momentum indicator to measure price changes to analyse overbought/oversold conditions.
  • MTF: % Amount Funded by Dhan.
  • Margin Pledge: % Collateral Benefit for Additional Margin.

*The scrips mentioned above are just for research purpose and not recommendations. Please do your own due diligence before investing.


What are the most accurate indicators?

Investors look out for high ROE (return on equity) stocks as they generate strong profits using the equity of shareholders. Look out for the following key indicators to identify such stocks.

  • ROE ≥ 15%: The standard benchmark of high ROE stocks is a return higher than or equal to 15% compared to the previous year. It suggests that the company is efficiently converting equity into net income.
  • Consistent ROE Over 3 to 5 Years: Rather than examining strong growth over one year, investors must look out for sustained high ROE over 3 to 5 years. This growth indicates long-term financial health and efficient management.
  • Low or Reasonable Debt-to-Equity Ratio: Excessive debt can inflate ROE artificially. A balanced D/E ratio ensures that high leverage does not drive the ROE.
  • High Net Profit Margin: Look for stocks belonging to companies with a strong bottom line. It supports a high ROE and shows that the company operates efficiently.
  • Stable Growth in Earnings: Companies tend to maintain or improve ROE over time when their earnings steadily grow.

How to identify good ones?

Investors, while identifying good high ROE stocks, must check other aspects beyond ROE. Here's how to find quality companies with high ROE.

  • Start with ROE: As the base filter, consider stocks with ROE ≥ 15%. It shows strong profitability relative to the equity of shareholders.
  • Evaluate Consistency: Examine the ROE trend for the last three to five years. A stable or growing ROE points to long-term efficiency and not a one-off spike.
  • Check Debt Levels: Make sure that the high ROE isn't the result of excessive leverage. A low or moderate debt-to-equity ratio indicates a healthy capital structure.
  • Analyze Profit Increment: Look for stocks with high ROI, provided they are backed by a steady growth in profits. This shows the real performance of the companies.
  • Understand the Business Model: Investors must look for companies with competitive advantages like branding or cost leadership that often sustain high ROE for years.

How to analyse?

While analyzing high ROE stocks, investors must look beyond the percentage and try to understand the factors leading to those returns. Here's how to do it.

  • Break Down ROE: Perform the DuPont Analysis, using the formula – “ROE = Net Profit Margin × Asset Turnover × Financial Leverage”. This shows whether the ROE is driven by efficiency, profitability, or high debt.
  • Assess the Quality of ROE: It's crucial to assess the quality of ROE since sustainable returns come from core business strength, not from one-time gains or excessive borrowing.
  • Evaluate Historical ROE: Analyze the historical ROE of the stock. A consistently high return of 15% or more over 3-5 years reflects its ability to create long-term value.
  • Compare Across Sectors: Compare the stock to its peers in the same industry, which makes high ROE more meaningful.
  • Check for Equity Dilution: Rising ROE with shrinking equity due to buybacks or dilution might not be sustainable. Therefore, it's advisable to check for equity dilution before investing.

Where do most investors or traders go right/wrong?

It's crucial to understand where investors succeed or falter with high ROE stocks. This can make a difference in the overall returns in a long-term portfolio.Successful investors consider high ROE as a sign of the company's ability to generate profit efficiently from its equity base.They prioritize companies with consistently high ROE over multiple years, which indicates sustainable performance.They use ROE as a filter in combination with other financial metrics, which makes the analysis more balanced.On the other hand, some investors chase high ROE blindly, overlooking that it can be inflated by high debt rather than the genuine strength of the business.At times, investors ignore sector-specific ROE norms. Something that's impressive in one industry might be average in another.Many forget to check if the ROE is sustainable or temporarily boosted by one-time gains.Investors also miss out on factoring in dilution or inconsistent earnings, which leads to poor decisions in the long run.

Frequently Asked Questions

When selecting high ROE stocks, investors should focus on companies with a consistent track record of high return on equity. Look for firms with strong profit margins, efficient asset management, and robust financial health. Detailed analysis of financial statements and industry comparisons is essential to identify promising high ROE stocks.
High ROE stocks are attractive because they indicate efficient use of shareholders' equity to generate profits. Companies with high ROE often have strong competitive advantages, effective management, and the ability to reinvest earnings for growth. These stocks can offer significant capital appreciation and dividend potential.
Despite their advantages, high ROE stocks come with risks such as market volatility and potential overvaluation. A high ROE driven by excessive debt can be risky, as it may indicate financial instability. Investors should carefully assess the company's debt levels and overall financial health to manage these risks.
High ROE stocks can be a good option for beginners, as they often belong to well-managed companies with strong profitability. These stocks can provide a solid foundation for a diversified portfolio. However, beginners should ensure they understand the company's financials and market conditions before investing.
Incorporating high ROE stocks into a long-term investment strategy can enhance portfolio performance. These stocks typically belong to companies that efficiently generate profits, leading to potential capital appreciation and dividend income. Regular monitoring and thorough research are essential to maintaining a balanced and successful long-term investment portfolio.

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