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5 Small-Cap Stocks With High ROCE Annual Percentage
A high ROCE value suggests that more profits can be re-invested in the business for the benefit of shareholders. The capital is re-invested at a higher rate of return, resulting in increased earnings-per-share growth. As a result, a high ROCE is indicative of a successful growth organization. Strong ROCE is linked to higher stock returns, especially during periods of high inflation.
The return on capital employed, often known as the 'primary ratio,' is a financial statistic that is used to assess a company's profitability and capital utilization efficiency. Simply put, it assesses a company's ability to generate profits from its capital.
Sun Pharma Advanced Research
Sun Pharma Advanced Research Business (SPARC) is a clinical-stage biopharmaceutical company dedicated to consistently enhancing patient care standards around the world through therapeutic and delivery innovation. The stock returned -12.38 percent over three years, compared to 82.17 percent for the Nifty Midcap 100. The company's annual revenue increase of 198.43 percent surpassed the 45.34 percent CAGR for the previous three years.
Sun Pharma Advanced Research Business Ltd., founded in 2006, is a Mid Cap company in the Pharmaceuticals industry with a market capitalization of Rs 6,915.62 crore. Over a three-year period, the stock had a -12.38 percent return, compared to 43.69 percent for Nifty Pharma.
Mahanagar Telephone
Bharat Sanchar Nigam Limited, d/b/a MTNL, is a wholly-owned subsidiary of Mahanagar Telephone Nigam Limited, based in New Delhi, India. MTNL provides services in India's metro cities of Mumbai and New Delhi, as well as the African island nation of Mauritius.
For the fourth quarter in a row, the company has lost Rs 688.7 crore. Stock returned 38.58 percent over three years, compared to 83.58 percent for the Nifty Smallcap 100. Over a three-year period, the stock returned 38.58 percent, compared to 78.18 percent for the S&P BSE Telecom index.
Kilpest India
Kilpest India Ltd is a significant agribusiness company in India. Kilpest is an ISO-certified firm with a presence in India in the agricultural market, which includes Crop Protection and Public Health Products, Bio Products, Micronutrients, and Mix Fertilizers. In the fiscal year ended March 31, 2021, the company had a ROE of 86.23 percent, exceeding its five-year average of 60.74 percent. The company's annual sales growth of 653.53 percent surpassed its three-year compound annual growth rate of 112.21 percent. Stock returned 545.74 percent over three years, compared to 83.58 percent for the Nifty Smallcap 100.
HCL Infosystems
After three consecutive quarters of losses, the company made a profit of Rs 40.58 crore in the quarter ending June 30, 2021. The stock returned -49.71 percent over three years, compared to 83.58 percent for the Nifty Smallcap 100. Revenue fell by 70.67 percent on a quarter-over-quarter basis, the lowest level in the last three years. Stock returned -49.71 percent over three years, compared to 83.58 percent for the Nifty Smallcap 100.
PNB Gilts
PNB Gilts Ltd., founded in 1996, is a Small Cap business in the Financial Services industry with a market capitalization of Rs 1,166.47 crore. In the fiscal year ended March 31, 2021, the company generated a return on equity of 34.49 percent, surpassing its five-year average of 17.23 percent. The stock returned 128.17% over the last three years, compared to 83.58 percent for the Nifty Smallcap 100.
Since July 3, 2001, PNB Gilts Ltd. has declared 24 dividends. PNB Gilts Ltd. has given an equity dividend of Rs 10.00 per share in the last 12 months. This translates to a dividend yield of 15.43% at the current share price of Rs 64.80.
5 Small-Cap Stocks With High ROCE Annual Percentage
| Company | ROCE | Price |
| Sun Pharma Advanced | 3,836.5 | 262.50 |
| Mahanagar Telephone | 734.2 | 18.50 |
| Kilpest India | 101.1 | 447.50 |
| HCL Infosystems Ltd. | 79.7 | 12.90 |
| PNB Gilts Ltd. | 75.6 | 64.80 |
Conclusion
Although ROCE is a key statistic for determining shareholder value, it is rarely included in annual reports. It has been noted that organizations with a higher ROCE than their industry have a relentless focus on driving their organizations to achieve it. All of their strategic and operational efforts, including performance measures across functions and levels, are linked to important ROCE value drivers including fixed asset productivity, working capital turns, and operating margins in such organizations.
