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Stocks to buy: Consider stocks with healthy return ratios; 5 stocks with up to 39.3% upside potential

By Economic Times - 8 hours ago
ET Wealth has identified companies that have a strong return ratio profile. The data for the past five financial years for RoE, RoCE and RoA were extracted from Reuters-Refinitiv for listed companies (with market cap of more than Rs 100 crore), including the latest data for 2023-24. The companies with highest return ratios in 2023-24 compared to the past five years were selected. Also, only companies with positive ratios in the defined period were included. Furthermore, only those with both RoE and RoCE in double digits in 2023-24 were included. There are only 24 such stocks. The average one-year return of the group of such 24 stocks is 50.9%, compared to the Nifty 500 index with 28.9% returns. Of the 24 stocks, 21 delivered positive returns, with 14, or 58.3%, outperforming the Nifty 500 index. The returns are based on 12 November 2024 closing values.

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