Episode 36: Return on Equity - Stock Market Investment Series

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"Ace investor and stock markets expert Basant Maheshwari talks to senior journalist Manvi Sinha Dhillon, sharing his wisdom about investments and the market.
How significant is RoE for an investor? Is it good for short term or long term assessment? Mr. Maheshwari breaks it down for you."

What is covered?
0:00 Introduction
10:30 Can the ROE be an inflated number?
11:16 What are the special situations where ROE has limited applicability?
12:09 Is ROE more significant for the short-term stock performance or it’s a much better metric for figuring out the long term returns in a stock?
13:09 Can you say that for longer periods of time? the role of valuation diminishes for the very long-term investor in a company delivering high ROE.
14:02 Is ROE a good metric to judge growth? Some companies grow by diluting equity. They’d say we spent on opex, advertising the benefits of which will accrue over the next one year. How does an investor approach this situation?
15:28 Money is made by putting large amounts of capital to a high ROE. Companies with high ROE don’t need cash while companies with low ROE need cash all the time. How does one break this paradox?

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[prafuljain]

Such a knowledgeable person...giving his knowledge for free....amazing eye opener

[shubhamdodeja]

More than anything, your videos has changed my mindset towards equity market and things seem much more clearer in the age of so much information. Thank you for all the videos you are regularly uploading, its amazingly helpful.

[_ekjot]

Sir man gye aapki knowledge ko and thanks yeh free mein dene ke liye
Plz keep it up

[paragvaishampayan]

Well researched content with analysis 🙏

[chandrashekarv]

Awesome session and great learning. Thank you sir 😊

[burkhan]

Great learning, will watch the complete series. Thanks

[Samudragupta_]

What a beautiful video. Thank you so much, Sir.

[madhumita]

Interesting discussion. I would request you to please take care of audio as it is not audible properly. You should watch the video before uploading to youtube. otherwise excellent discussion.

[MrVeer]

Thanks for the nice explanation regarding DuPont model

[ballu]

Got my a thankless job u r margin×asset turnover ratiox lowest

[urvishmehta]

This should not be free. Truly World class. Never heard this perspective on ROE

[savanladani]

Sir, what is the difference between ROE and ROCE? which matrix is more useful?

[hasoyar]

Hello Sir, This is Tapas. I m new to to stock investing..please share your view on Astral

[abhrarajchanda]

Asset turnover is same as cash conversion cycle?

[akshaydalvi]

Sir i watch all your videos daily Thanks for all the videos you upload
one question - Is metal commodities prices going up/ down which is good / bad for metal companies like Tata steel, Jsw steel, National Aluminium, SAIL etc can you throw so lights into this

[chandanpandey]

Sir....Can you give your opinion on Sona BLW Precision also called Sona Comstar?
- It is an auto ancillary company with 5 yr profit growth of 31% & revenue growth of 50%.
- Produces Differential Assemblies, Gears, Motors etc.

Now, 22% revenue is from the Electric Vehicle segment. In last 4 years, global market share has increased from 1.5% to 4.5% in EV segment.
P/E corrected from 200 to 72 in last 2 yrs.

Can it be a multibagger?

[Adv_Aniket_garg]

NAMASKAR SIR
Wrestler example is very good

[farhanshees]

Sir, please share your view on page industries for 12 to 18 months 🙏

[mitulsatra]

Sir share market knowledge is best but I admire your dressings sense too
Original Burberry
Hugo boss
And other brands simply great sir
Even peach kurta is also giving rich
Look .
Marwadi hoke itna expense best hain .

[prohind]

Dividend if reinvested in the same company, you'll get more dividend next time. If next dividend remain same, it's like the company has reinvested dividend and made the same level of profits on the dvidend amount also. Unless the return on reinvestment is more than the dividend %, there is no difference to the shareholder whether company gives dividend or reinvests that amount.