High RoE & low volatility: Ten stocks investors need to watch out for

During times of high volatility in stock market and delayed earnings growth, it makes sense to look for companies that have created value for the shareholders. Moreover, if the companies are not susceptible to extreme stock price movements, it adds to their attractiveness. Keeping these two critical factors in mind, ET Intelligence Group has compiled a list of 10 companies across sectors with low beta in the range of 0.5-1 (which makes them less sensitive to market volatility), and which have delivered improving return on equity (RoE) in the past fi ve years. Companies with current RoE higher than the fi ve-year average have been selected. Consistently improving RoE means a company is generating high profi ts on every rupee invested in the business. Companies from consumption and pharmaceuticals sectors dominate the list. Some of these include Alembic Pharmaceuticals, Biocon, Marico and Cadila Healthcare.