Top 5 Midcap Stocks with High RoCE to Add to Your Watchlist
fundamentally strong companies that efficiently utilise their capital to generate profits. RoCE not only reflects a company's operational efficiency but also its ability to provide attractive returns to its shareholders. This article delves into the world of midcap stocks in India, specifically focusing on the top five high RoCE midcap stocks that have caught the attention of investors.
These stocks are not only characterised by their promising financial performance but also their strategic positioning within their respective industries. By examining their operational excellence, competitive advantages, and growth prospects, investors can gain valuable insights into potential opportunities that align with their investment goals. Here are the top five.
#1 P&G Hygiene The first stock on our list is P&G Hygiene. The company is the Indian subsidiary of the American MNC, Procter & Gamble. It's engaged in the manufacturing and selling of branded packaged consumer goods in the feminine hygiene and healthcare business.
Its portfolio includes popular brands such as Whisper, Vicks, and Old Spice. P&G Hygiene’s RoCE stands at 110% with 3-year average RoCE at 87.34% demonstrating excellent ability in generating returns for its shareholders on its capital. This is because unlike other FMCG companies, P&G has adopted a hybrid model of manufacturing.
The company outsources its manufacturing in addition to manufacturing products at its two wholly owned facilities in Goa and Himachal Pradesh. For the March 2023 quarter, the company reported a dip in quarterly sales on Wednesday, as the pandemic-driven demand for healthcare products waned with new Covid-19 cases dropping across the country. However, it posted a 60.4% YoY increase in net
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