5 popular stocks with no growth to show

Sometimes, the market forgets its own rules. Stocks with barely any earnings momentum, weak capital returns and no visible growth runway are rewarded with valuations that should belong to high-flying disruptors. This isn’t just a mismatch, it’s a flashing red flag. And our market is filled with many such examples. We sought to look for a few with the following filters: Companies trading at P/E multiples north of 70 Profit after tax growth below 10 per cent during each of the last five years (FY19-24) Average ROE and ROCE below 10 per cent for last five years  The result? We found five potential traps—stocks priced for perfection without the performance to back it. See table  Company P/E (times) 5-year average ROE (%) 5-year profit after tax growth (pa%) Stock Ratings Kokuyo Camlin 92 4 -21.6 1 Mangalore Refinery And Petrochemicals 465.2 10 -63.5 2 Rajesh Exports 96.6 8 -51.8 2 Reliance Industrial Infrastructure 116.9 3 -11.4 3 Uniphos Enterprises 927.2 1 -50.0 3 Two familiar names stood out: Kokuyo Camlin, a nostalgic favourite in school stationery, and Reliance Industrial Infrastructure, a passive cog in India’s largest conglomerate. Their analysis below reveals why you should look past the brand and focus on the balance sheet. Kokuyo Camlin What’s weighing down profits The company behind the iconic stationery brand Camlin evokes nostalgia for generations