Mid-Cap Indian Firms Deliver Strong Returns on Equity
A handful of mid-cap companies in India are delivering impressive returns on capital and equity. To assess this, we look at Return on Equity (ROE) and Return on Capital Employed (ROCE), which measure a company's ability to generate profits from shareholders' funds and the capital invested.
Among these companies are Procter & Gamble Hygiene and Health Care Ltd, Glaxosmithkline Pharmaceuticals Ltd, Anand Rathi Wealth Ltd, Garden Reach Shipbuilders & Engineers Ltd, and Motherson Sumi Wiring India Ltd. These firms have consistently delivered strong ROE and ROCE across different sectors.
Procter & Gamble Hygiene and Health Care Limited has a market capitalization of Rs. 27,644 Crores and delivers an impressive ROCE of 157 percent and ROE of 115 percent. The company's shares were trading at around Rs. 8,516 per share with a P/E ratio of 35.
Glaxosmithkline Pharmaceuticals Ltd has a market capitalization of Rs. 44,046 Crores and delivers an ROCE of 61.4 percent and ROE of 45.6 percent. The company's shares were trading at around Rs. 2600 per share with a P/E ratio of 41.8.