6 largecap stocks with right mix of RoE & RoCE for volatile times

Synopsis

Every industry has its own operating structure, right from the raw material supply chain to who the end consumers are and what are their needs. Like, in the case of infrastructure, it is government expenditure that drives the demand whereas raw material supply is largely domestic. In the case of an FMCG company, it is the disposable income at the hands of the common man that matters most. However, in the case of chemicals, what happens in China is more important than anything else. Similarly, for every industry, the range of financials, like ROE and ROCE would be a range rather than a single number. ET screener powered by Refinitiv’s Stock Report Plus lists stocks with high upside potential over the next 12 months, having an average recommendation rating of “hold” or a “buy” or a "strong buy".

In the last two months, words like “ below estimates 'have been heard on the Street multiple times. However given the fact that foreign flows are higher than expectations, stock prices have not corrected the way they would normally do in an earning season where there is hardly any positive surprise. Given that valuations are not very cheap, any disappointment on any front, be it a decline in the foreign flows or any domestic development
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