Top 3 Small Cap Companies With Huge ROCE And ROE Over The Years

Return On Equity (ROE) and Return On Capital Employed (ROCE) are two favourite numbers of investors in the equity market. Both numbers are used for analyzing the fundamentals of the company.

A typical metric for comparing companies is Return On Equity (ROE), computed by dividing the net income by the entire equity, which is rather simple. Conversely, the operating profit after taxes is divided by the capital employed to determine Return On Capital Employed (ROCE).

ROE and ROCE are the two numbers commonly seen by many big investors, analysts, brokerage firms, and retail investors. So, here are 3 small-cap companies that have had huge ROCE and ROE over the years.

EKI Energy Services Ltd.

EKI Energy Services Ltd is one of India's leading small-cap energy companies. The company is engaged in the business of carbon offsetting and, sustainability advisory & climate change. EKI Energy Services has shown robust growth in the business over the year. The fundamentals of the company look very attractive.

The stock's current market price is Rs. 1,569 with a market capitalization of Rs. 4,315 Crores. This year, the company's Return On Equity and Return On Capital Employed are 176% and 236%, respectively; over five years, ROCE is 223%, and ROE is 170%.

As per the returns, the company has given negative returns of -7.7% over one month, -10.04% over 3 months and robust positive returns of 402.57% over a year.

Ksolves India Ltd.

Ksolves India Ltd., founded in 2014, works with businesses in various industries, including real estate, finance, e-commerce, telecom, and healthcare, to build software, offer enterprise solutions, consult, and provide IT solutions. The business creates new applications, develops and maintains software systems and solutions, and improves the functioning of already-existing software products. It also functions with other technologies, like Salesforce, AI, AR/VR, IoT, and chatbots.

The company's current market capitalization is Rs. 486 Crores, and the stock is trading at the current market price of Rs. 410. As of this year, the company has an ROE and ROCE of 106% and 140%; over 5 years, the numbers are 110% and 146%, respectively.

The stock has given a negative return of -7.94% over one-month, positive returns of 25.49% in three months and around 14.09% returns over one year.

Kwality Pharmaceuticals Limited

Kwality Pharmaceuticals Limited is one of the leading small-cap pharma companies. The company manufactures and exports pharmaceutical formulations such as dry syrups, tablets, liquid orals, sterile powder for injections, capsules, small volume injectables, external preparations, ointments, and Oral Rehydration Solution (ORS).

The company's current market capitalisation is Rs. 480 Crores, and the stock's current market price is Rs. 462. This year, the company has an ROE and ROCE of 98% and 96.8%; over 5 years, the numbers are 55% and 50.1%, respectively.

The stock of Kwality Pharma has given an upside of 57% over 1 month, 36.87% over 3 months, and negative returns of -29.34%, but over the longer term, the stock has given a whopping 1187% of returns over 3 years.