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Buffett looks for 20%+ ROCE. These 2 large caps make the cut

These large caps pass Warren Buffett's test of economic excellence

Buffett looks for 20%+ ROCE. These 2 large caps make the cut.Aditya Roy/AI-Generated Image

हिंदी में भी पढ़ें read-in-hindi

Summary: If Warren Buffett went shopping in India’s large-cap aisle today, these are the names that might catch his eye. Find the complete list below. If there is one quality investing maven Warren Buffett has always prized, it’s efficiency. To him, a company’s true worth lies not in how big it is, but in how effectively it turns every rupee of capital into lasting profits. That’s why he likes businesses that deliver high returns on equity and capital year after year—proof that their engines of efficiency never stall, no matter the market cycle. Taking a leaf out of that playbook, we turned our attention to India’s large-cap universe to identify companies that embody Buffett-approved efficiency. Here’s how we did it: Efficiency first: We looked for companies that have maintained a return on equity (ROE) and return on capital employed (ROCE) above 20 per cent in each of the past five years. Quality and value, balanced: We got a list of 16 stocks. From there, we sorted companies by Value Research Stock Ratings—those that were rated a full five stars&m


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