
Every company should aim at having a good return on equity, which is net income divided by shareholders' equity. But if we look at the current ROE of actively traded listed companies above Rs 100 crore (1,326 companies), only 38 per cent of the companies have a return on equity of 15 per cent or more. This means that if we assume the cost of capital to be 13 per cent, only 38 per cent of the actively traded listed companies





