Return on equity (ROE) is a financial metric that measures how efficiently a company generates profits from shareholders’ investments. It’s calculated by dividing net income by shareholders’ equity and expressed as a percentage.
A high ROE indicates that a company is effectively using investor’s money to generate substantial profits. A low ROE suggests that management may need to utilize shareholder’s investments more effectively.
However, it’s important to note that ROE should be compared within the same industry, as different sectors typically have different average ROE ranges due to varying business models and capital requirements.
Here are a few Micro-Cap stocks trading at high ROE greater than 50%
Sathlokhar Synergys E&C Global Limited
With a market capitalization of Rs. 826 crores, Sathlokhar Synergys E&C Global Limited’s share price closed at Rs. 342.40 per share on Friday, down around 3.83 percent compared to its previous close.
In terms of return ratio, the company’s return on equity should be 95.4 percent, and the return on capital employed should be 117 percent.
Sathlokhar Synergys E&C Global Limited’s revenue from operations has increased by 183.91 percent, from Rs. 87 crore in FY23 to Rs. 247 crore in FY24. The net profit of the company has improved from Rs 5 crore in FY23 to Rs 26 crore in FY24, which has increased by 420 percent.
Sathlokhar Synergys E&C Global Limited, established in 2013, provides integrated EPC and infra-turnkey services across India. The company specializes in designing and constructing industrial buildings, warehouses, pharmaceutical facilities, solar projects, hospitals, and hotels. They currently operate in Tamil Nadu, Karnataka, Uttar Pradesh, and West Bengal.
Sahaj Solar Limited
With a market capitalization of Rs. 571.27 crores, Sahaj Solar Limited’s share price closed at Rs. 520 per share on Friday, down around 0.95 percent compared to its previous close.
In terms of return ratio, the company’s return on equity should be 53.2 percent, and the return on capital employed should be 39.4 percent.
Sahaj Solar Limited’s revenue from operations has increased by 8.65 percent from Rs. 185 crore in FY23 to Rs. 201 crore in FY24. The net profit of the company has improved from Rs 6 crore in FY23 to Rs 13 crore in FY24, which has increased by 116.67 percent.
Sahaj Solar Limited was established in 2010 and manufactures PV modules and delivers solar water pumping systems and EPC services. The company operates a 100 MW manufacturing facility in Bavla, Gujarat, producing high-efficiency Mono PERC modules with 21% efficiency.
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Teerth Gopicon Limited
With a market capitalization of Rs. 545.98 crores, Teerth Gopicon Limited’s share price closed at Rs. 455 per share on Friday, down around 1.30 percent compared to its previous close.
In terms of return ratio, the company’s return on equity should be 84.1 percent, and the return on capital employed should be 75.3 percent.
Teerth Gopicon Limited’s revenue from operations has increased by 518.18 percent from Rs. 11 crore in FY23 to Rs. 68 crore in FY24. The net profit of the company has improved from Rs 1 crore in FY 23 to Rs 8 crore in FY 24, which has increased by 700 percent.
Teerth Gopicon Limited was established in 2019 and specializes in engineering construction and development projects in Madhya Pradesh. Building on their promoter’s experience since 2009, they execute road construction, sewerage systems, and water distribution networks. The company has also completed residential tower projects in Indore as a subcontractor.
Remedium Lifecare Limited
With a market capitalization of Rs. 256.44 crores, Remedium Lifecare Limited’s share price closed at Rs. 6.36 per share on Friday, rising around 2.09 percent compared to its previous close.
In terms of return ratio, the company’s return on equity should be 123 percent, and the return on capital employed should be 99.5 percent.
Remedium Lifecare Limited’s revenue from operations has increased by 692.57 percent from Rs. 510 crore in FY23 to Rs. 4,040 crore in FY24. The net profit of the company has improved from Rs 5 crore in FY 23 to Rs 33 crore in FY 24, which has increased by 560 percent.
Remedium Lifecare Limited was established in 1988 and operates as a pharmaceutical company with two main business verticals. The company trades and sells APIs and intermediates to pharmaceutical manufacturers in domestic and international markets. Their product portfolio serves both innovators and generic pharmaceutical players across regulated markets.
Written By – Nikhil Naik
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