- Wealth PMS (50L+)
Brent Crude has risen by 13% in the past month and is now trading around $84. Nifty 50, Gold and Silver cooled off a bit this week while USDINR gained a little.
Pharma sector was up 4.8% this week followed by Realty and Healthcare sector. Over all timeframes, the best performing sectors are the ones that are usually out of favour in the markets – Realty, Media and PSU Banks!
Last quarter, there were 484 mentions of ROCE in the filings of just the 50 Nifty companies.
ROCE stands for “Return on Capital Employed.”: how well a company is generating profits from its capital. It is considered a critical part of the puzzle of finding quality businesses.
But the key question is – to what extent did high ROC translate to shareholder return?
We did a longitudinal analysis spanning ten years centred on classifying companies on the continuum from high to low ROC and looking at their shareholder returns.
The objective was to see what patterns emerge that might be considered generally acceptable to the way the stock market rewards shareholders.
Here’s what we found.
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