7 smallcaps with consistently high ROE & ROCE have trippled investors' wealth in 3 years

ETMarkets has analyzed smallcap companies that have exhibited an RoE and ROCE of at least 25% for each of the past three fiscal years (FY20-FY22). The filter has thrown up 13 companies that met the criteria. We narrowed our focus to companies that have tripled investor wealth in the last three years, and ultimately nine companies fit the bill.

It's important to note that RoE and RoCE provide a comprehensive overview of a company's financial performance. RoE indicates a company's profitability and efficiency in generating profits, calculated by dividing net income by shareholders' equity. The higher the RoE, the better a company is at using equity financing to generate profits.

RoCE, on the other hand, measures a company's profitability in terms of all its capital, and higher ratios suggest greater profitability. As per the Trendlyne SWOT analysis, most of these stocks have more strengths than weaknesses. (Data Source: ACE Equity)

- Company with no debt
- Increasing revenue every quarter for the past 3 quarters
- Annual net profits improving for last 2 years
- Book value per share improving for last 2 years
- Company with zero promoter pledge
- FII / FPI or institutions increasing their shareholding

- Strong annual EPS growth
- Company with low debt
- Annual net profits improving for last 2 years
- Book value per share improving for last 2 years
- Company with zero promoter pledge

- Company with low debt
- Increasing profits every quarter for the past 4 quarters
- Improving cash flow from operation for last 2 years
- Book value per share improving for last 2 years
- Company with zero promoter pledge
- FII / FPI or institutions increasing their shareholding

- Growth in quarterly net profit with increasing profit margin (YoY)
- Annual net profits improving for last 2 years
- Book value per share improving for last 2 years
- Company with zero promoter pledge

- Company with low debt
- Increasing revenue and profit every quarter for the past 2 quarters
- Annual net profits improving for last 2 years
- Book value per share improving for last 2 years
- Company with zero promoter pledge
- FII / FPI or institutions increasing their shareholding

- Company with low debt
- Increasing revenue every quarter for the past 3 quarters
- Improving cash flow from operation for last 2 years
- Annual net profits improving for last 2 years
- Company with zero promoter pledge
- FII / FPI or institutions increasing their shareholding

- Growth in net profit with increasing profit margin (QoQ)
- Company with low debt
- Annual net profits improving for last 2 years
- Company with zero promoter pledge
- FII / FPI or institutions increasing their shareholding

- Improving net cash flow for last 2 years
- Annual net profits improving for last 2 years
- Growth in quarterly net profit with increasing profit margin (YoY)
- Company with no debt
- Increasing profits every quarter for the past 2 quarters