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ET Wealth

6 good stocks picked using DuPont model analysis

Investors rely on return on equity (RoE) to determine if a company is worth investing in. It is necessary to analyse the sources through which RoE is routed and the DuPont model helps with that. Here are 6 stocks picked via the DuPont Model.

By Sameer Bhardwaj, ET Bureau |Updated: January 13, 2020, 08.01AM IST
Return on equity (RoE) is a key statistic used to evaluate the profitability and efficiency of a company. It measures in percentage the return generated for shareholders. Potential investors rely on RoE to determine if a company is worth investing in. It is often an input in valuation discount models that estimate the fair value of a stock. RoE is
revenue visibility. Edelweiss believes the company continues to be one of the best-managed road constructors with a light balance sheet, low working capital and one of the highest RoCE among peers. Current price as on 7 January 2020. Estimated PE for 2019-20. BSE500 index estimated PE: 21.82, RoE: 10.65. Data source: ACE Equity & Bloomberg.

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