Believe it or not. There is a stock in India having 720% ROE. It’s name is Kesoram Industries Ltd. So let’s analyse this stock.
First, CMP(Current Market Price) is ₹ 81.1. It’s P/E ratio is extremely low, only 3.70. Although ROE is 720 %, ROCE is only 15%.
Here are some pros and cons of the company:
1. Stock is trading at 6.77 times its book value. (Con)
2. Company has low interest coverage ratio. (Con)
3. Promoter holding has decreased over last quarter: -5.12%. (Con)
4. Company has a low return on equity of -55.19% for last 3 years. (Con)
5. Promoters have pledged 45.78% of their holding. (Con)
It’s Debt/Equity ratio is 10. Market capitalisation is about ₹1336 crore while debt is ₹1976 crore. If you want more analysis about this stock, click here.
Disclaimer: This analysis is of my own. It may be right or wrong. Investors must execute trade on their own risk. I am not a legal financial advisor.
Knowledge Glutton 