peush kumar

[peush kumar @peushkumar10]

@ShanidVH @Er_Vpin 37,700cr Still a small cap

[peush kumar @peushkumar10]

@Asan_research Good list dear ASAN. A saying goes among we long term investors, if a stock has done 10X in a decade and still Mcap is below 5000cr, Next decade SHALL BE BIGGER..

[peush kumar @peushkumar10]

@TejaswiPalam Holding is not tough as conviction builds over time + with returns. Exit seems tougher!

[peush kumar @peushkumar10]

@TejaswiPalam Perfect script, for much better returns..

[Akash Chaudhary @Akash17971]

SME STOCKS WITH MINIMUM 40% ROCE TO STUDY AND TRACK 📊

Simca Advertising
Millworks Technologies
Recode Studios
Emkay Tools
Vegorama Punjabi
Vivid Electromech
Devson Catalyst
Australian Prem
Rajesh Power
Safe Enterprises
Sunlite Recycling
EPW India
Unified Data
Anondita Medicare
Connplex Cinemas
Alpex Solar
Parmeshwar Metal
Savy Infra
Arihant Academy
V-Marc India
Apex Ecotech
Teamtech Formwork
Merritronix
TechD Cybersecurity
Influx Health.

WHAT IS ROCE?
ROCE = Return on Capital Employed
ROCE tells us how efficiently a company is using the capital invested in its business to generate operating profits.

In simple words:
“For every ₹100 of capital employed in the business, how much operating profit is the company generating?”

The commonly used formula is:
ROCE = EBIT ÷ Capital Employed × 100
Where:
🔹 EBIT = Earnings Before Interest & Tax
🔹 Capital Employed is commonly calculated as Total Assets − Current Liabilities.

Another equivalent approach is to look at the capital provided through equity + debt, adjusted according to the methodology being used.

WHY IS ROCE IMPORTANT?
A company can grow its sales and profits, but what matters is how much capital it needs to generate that growth.

For example:

Company A
Capital employed = ₹100 Cr
EBIT = ₹40 Cr
ROCE = 40%

Company B
Capital employed = ₹500 Cr
EBIT = ₹50 Cr
ROCE = 10%

Both companies generate operating profits, but Company A is using its capital far more efficiently.

That is why ROCE can be particularly useful when studying capital allocation and business quality.

WHAT DOES A HIGH ROCE TELL US?

A consistently high ROCE can indicate:
🔹 Efficient use of capital
🔹 Strong operating economics
🔹 Better asset utilization
🔹 Pricing power or competitive advantages
🔹 Lower capital intensity
🔹 Stronger potential for internally funded growth
🔹 Better capital allocation

However, high ROCE by itself does NOT automatically mean a stock is a good investment.

A company may have a high ROCE because of a temporary spike in profits, unusually low capital employed, asset-light operations, or other accounting/business factors.

HOW SHOULD WE TRACK ROCE?
Don't look at ROCE only once.

Track the trend.
For example:
FY24 → 22%
FY25 → 29%
FY26 → 37%
FY27 → 42%

This is much more interesting than simply finding a company with 42% ROCE today.

The important question is:
Is the company consistently generating high returns on capital, and can it sustain or improve them?

WHAT TO CHECK 👇
🔹 ROCE trend: Is it increasing, stable or declining?
🔹 EBIT growth: Is operating profit growing along with ROCE?
🔹 Sales growth: Is the business actually expanding?
🔹 Capital employed: Is the company requiring huge amounts of additional capital to grow?
🔹 Debt: Is growth being funded through excessive borrowing?
🔹 Cash flows: Are operating cash flows supporting reported profits?
🔹 Working capital: Is receivables/inventory growth eating into cash?
🔹 Margins: Are operating margins improving or deteriorating?
🔹 Asset turnover: Is the company generating more revenue from its assets?
🔹 Consistency: Has the company maintained high ROCE across multiple years and business cycles?

ROCE + GROWTH IS A POWERFUL COMBINATION
One of the most interesting situations is:
High ROCE + High Growth + Strong Cash Flow

For example:
A company generating 40%+ ROCE, growing its operating profit consistently, maintaining healthy cash flows and reinvesting capital at attractive returns can potentially create significant value over the long term.

But if ROCE is high while growth is stagnant, the opportunity may be very different.

Similarly:
High growth + Low ROCE
can mean the company is consuming a lot of capital to generate that growth.

Therefore, don't study ROCE in isolation.

A BETTER CHECKLIST:
ROCE → Growth → Margins → Debt → Cash Flow → Working Capital → Valuation

This gives a much more complete picture of business quality.

📌 Quarterly: Check whether the operating trend is improving or deteriorating.
📌 Annually: Compare the latest full-year ROCE with the previous 3–5 years.
📌 During expansion: Check whether additional capital is producing proportional EBIT growth.
📌 During downturns: See whether ROCE remains resilient.
�� Before investing: Compare ROCE with the company's cost of capital and also evaluate valuation.

The objective is to identify businesses where high returns on capital are sustainable and can be reinvested for further growth.

DISCLAIMER
This is a study and tracking list, not a buy/sell recommendation.

[peush kumar @peushkumar10]

@AtulKum23854821 @DhanValue Bro, search for 26%+CAGR stocks of decade. 80% will performs similarly in next decade also. Need to do some work please...

[peush kumar @peushkumar10]

@vbomkara Not only Sansera, but Acutaas & craftsman also did well. Your acumen to smell companies in infancy is exemplary....keep doing good work please!!

[peush kumar @peushkumar10]

@prabhakarkudva @theBuoyantMan Well said, surprisingly good earnings season for mid-small caps. This may change overall india outlook. My sense says, this can catch speed spilling into overheated large caps too. Probably we can look forward to rocking deepawali with Q2 earnings. Please correct, if wrong!

[peush kumar @peushkumar10]

@KaustubhYeole Seems, quite weak results from oswal pumps

[peush kumar @peushkumar10]

@abhayjainp V good list, peak valuations bets.

[peush kumar @peushkumar10]

@Rohan84c @TejaswiPalam Debt!!!!!

[peush kumar @peushkumar10]

@aswathiguna It was little frustrating to see Spain missing net so closely, so many times. But their defense was rock solid. Argentina was totally ineffective.....looked miserable!!! Strategy of Spanish coach worked so well!!

[peush kumar @peushkumar10]

@LearningEleven Foolish of highest order. Ruined 3 families

[Rajasekar Maruthasalam @FunTechAcademy]

https://t.co/negEoVtAph

[peush kumar @peushkumar10]

@Asan_research Small investor

[Mithun Sarkar @MithunSarkari]

Valuations : These valuation gurus have spoilt the minds of most investors.
👉
In mkts nothing trades at fair valuations

Stock prices aren't set by accountants or pundits.They're set in a live auction: the highest bidder wins, limited supply meets real-time demand.Buyers and sellers constantly negotiate the last traded price. Supply is constrained - fixed float, Index holders who rarely sell, insider lockups.
Small buying pressure can send prices flying.

Ultimately, valuation boils down to one thing: discounted future earnings + visibility.
High growth + clear path ahead = premium multiples
Lumpy earnings + uncertainty = discount + volatility
Earnings matter, but expected future cash flows and how confidently we can see them matter more.
That's why narrative shifts and guidance can rerate a stock overnight.

Markets are forward-looking auctions with scarce inventory. Master that, and the game gets clearer.

What stock are you watching right now? 👀

[peush kumar @peushkumar10]

@Investoadda What a language brother, wow!!! -Metallics flexible flow solutions (Making metallic flexi pipes)

[peush kumar @peushkumar10]

@prabhakarkudva Perfect analogy. This secret is spilled in words in such a simple way. People need to absorb and practice.....I followed this since last 12-13years and got serious returns. For me it is Bang ON. The best part remains A 10+ bagger quietly goes to 20-30-40 bagger direction.

[peush kumar @peushkumar10]

@nsitharaman Keep India poor, keep feeding lazy indians free, keep robbing hard working middle class with high taxes and NO Benefits. No difference between congis and BJP's as you are meant for 80cr vote bank. We are not pushing the falling rupee, it is ONLY your POLICIES, Ms FM.

[peush kumar @peushkumar10]

@Tijori1 Does TIJORI1 is not same as TIJORI??? Asking to verify?