Roe: Companies with higher ROEs may be better bets during volatility

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Of the 26 stocks, 20 have given returns between 20% and 900% in the last three years, while 19 have given returns between 40% and 3,200% in the last five years.

essence

As investors prepare for a fall in earnings over the next few quarters, the focus is likely to be on companies with strong profitability track records. 26 of the top 1,000 Indian stocks by market capitalization have posted a return on equity (ROE) — a measure of companies’ use of shareholder money — over 25% each in the past five years.

MUMBAI: As investors gear up for a dip in earnings over the next few quarters, the focus is likely to be on companies with strong profitability track records. 26 of the top 1,000 Indian stocks by market capitalization have posted a return on equity (ROE) — a measure of companies’ use of shareholder money — over 25% each in the past five years. Many of these stocks have lost an average of 30% from their 52-week highs. Analysts

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