NAME – MANISH BHUPAL SHARMA

DESIGNATION – RESEARCH AND BUSINESS DEVELOPMENT ASSOCIATE

COLLEGE – ROHIDAS PATIL INSTITUTE OF MANAGEMENT STUDIES

FY.MMS - 2022082

COMPANY NAME – PRAEDICO GLOBAL RESEARCH PVT.LTD

ASSIGNMENT NO.5 – 10 STOCKS ON BASIS OF PE RATIO & ROCE

INTRODUCTION –

Long term investing is a popular investment strategy that intelligent retail investors use to
grow their money. Benjamin Graham, the father of value investing, defined intelligence
in investing as someone who does not try to time the market but values the 'time in the
market' by picking investment options that suit you best and not investing on hearsay.

While looking for the stocks to buy in India for the long term, along with fundamentals
and qualitative aspects like management quality and efficiency, the financials have to be
viewed from a long term perspective. Long term is usually more than 5 years for
investors.

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OBJECTIVE –

 To analyze ten stocks from each sector on basis of PE and ROCE

1. PHARMACEUTICALS SECTOR – Cipla is the 3rd largest pharmaceutical

player in India and leader in therapies such as respiratory and urology. It also
ranks 2nd in the overall chronic business. Currently stock PE is at 27.52 and
ROCE is at 17.50% the stock is 3 Times higher with its book value along with
0.56% Dividend yield. The overall parameter shows its feasible investment for
long term.
2. AUTOMOBILE SECTOR – Hero Moto Corp earlier also known as “Hero
Honda” is one of India’s first motorcycle manufacturers. Currently stock PE is at
20 and ROCE is at 19% the stock is 3 Times higher with its book value along
with 3.7% Dividend yield. The overall parameter shows its feasible investment
for long term.
3. IT SECTOR – HCL Tech is a leading global IT services company, which is
ranked amongst the top five Indian IT services companies in terms of revenues.
Currently stock PE is at 19.3 and ROCE is at 28.7% the stock is 4 Times higher
with its book value along with 4.5% Dividend yield. The overall parameter shows
its feasible investment for long term.
4. BANKING SECTOR – Axis Bank is the third largest private sector bank in
India. The Bank offers the entire spectrum of financial services to customer
segments covering Large and Mid-Corporates, MSME, Agriculture and Retail
Businesses. Currently stock PE is at 14.7 and ROCE is at 6.54% the stock is 2
Times higher with its book value along with 0.11% Dividend yield. The overall
parameter shows its feasible investment for long term.
5. METALS & MINING – Tata Steel has presence across the entire value chain of
steel manufacturing from mining and processing iron ore and coal to producing
and distributing finished products. Currently stock PE is at 16.7 and ROCE is at
12.9% the stock is 1.3 Times higher with its book value along with 4.68%

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 Dividend yield. The overall parameter shows its feasible investment for long
term.
6. OIL GAS & FUEL – ONGC is the largest crude oil and natural gas Company in
India, contributing around 71 per cent to Indian domestic production. Currently
stock PE is at 5.16 and ROCE is at 16.8% the stock is 0.74 Times higher with its
book value along with 6.65% Dividend yield. The overall parameter shows its
feasible investment for long term.
7. INSURANCE SECTOR – ICICI Lombard General Insurance Co. Ltd is one
of the leading and established private sector general insurance companies in India.
Currently stock PE is at 30.9 and ROCE is at 21.2% the stock is 5 Times higher
with its book value along with 0.84% Dividend yield. The overall parameter
shows its feasible investment for long term.
8. FMCG – Colgate-Palmolive India Ltd is engaged in manufacturing trading of
toothpaste, tooth powder, toothbrush, mouthwash and personal care products.
Currently stock PE is at 40.4 and ROCE is at 92% the stock is 26.2 Times higher
with its book value along with 2.51% Dividend yield. The overall parameter
shows its feasible investment for long term.
9. ENERGY – The Power Grind Corp has large blocks of power from the central
generating agencies and areas that have surplus power to load centers within and
across regions. Currently stock PE is at 11.2 and ROCE is at 11.5% the stock is 2
Times higher with its book value along with 4.95% Dividend yield. The overall
parameter shows its feasible investment for long term.
10. MEDIA & ENTERTAINMENT – Sun TV Network is engaged in producing
and broadcasting satellite television and radio software programming in the
regional languages of South India. Currently stock PE is at 9.82 and ROCE is at
27.5% the stock is 1.9 Times higher with its book value along with 3.47%
Dividend yield. The overall parameter shows its feasible investment for long
term.

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