Quality of ROE
ROE=NPM X Asset Turnover x Financial Leverage (NP/sales x Sales/Total Assets x Tot Assets/Tot BV) - > cols 7,8,9,10 The objective here is to look for companies where the ROE is not inflated due to Financial Leverage. The Financial Leverage ( Tot Assets/ Tot BV), if its high, then it indicates that the assets are funded mostly by Liabilities, not necessarily Debt, but maybe through high payables. Also this shows whether such companies have a higher ROE due to high NPM and a higher Asset Turnover.
by arnab
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| S.No. | Name | CMP Rs. | P/E | Mar Cap Rs.Cr. | Div Yld % | NP Qtr Rs.Cr. | Qtr Profit Var % | Sales Qtr Rs.Cr. | Qtr Sales Var % | ROCE % | ROE % | NPM Ann % | Asset Turnover |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1. | One Global Serv | 265.20 | 19.66 | 518.28 | 0.38 | 9.82 | 457.95 | 87.83 | 547.71 | 56.36 | 42.31 | 12.39 | 2.08 |
| 2. | Prakash Pipes | 327.60 | 11.52 | 783.57 | 0.55 | 10.31 | -59.41 | 203.42 | -0.68 | 26.84 | 20.55 | 10.65 | 1.46 |
| 3. | Likhitha Infra. | 249.65 | 14.88 | 984.87 | 0.60 | 13.91 | -18.51 | 122.41 | -2.10 | 27.59 | 20.29 | 13.54 | 1.32 |
| 4. | Bhansali Engg. | 107.16 | 15.45 | 2666.77 | 3.73 | 45.89 | -13.98 | 307.91 | -9.45 | 25.35 | 18.70 | 12.88 | 1.29 |
| 5. | Nitta Gelatin | 833.75 | 9.97 | 757.05 | 0.72 | 19.13 | -3.43 | 138.79 | 6.39 | 24.65 | 19.62 | 14.11 | 1.14 |
| 6. | Pudumjee Paper | 132.55 | 12.05 | 1258.56 | 0.45 | 36.24 | 31.45 | 196.45 | -3.15 | 22.35 | 16.74 | 11.12 | 1.09 |
| 7. | VTM | 72.60 | 16.32 | 730.13 | 1.17 | 4.60 | -12.05 | 71.99 | 21.73 | 19.49 | 15.29 | 12.64 | 1.01 |