Stock Market Today: HDFC Mutual Fund has raised stake in this low PE, high ROE auto stock Escorts Kubota Limited. Escorts Kubota Limited is trading at price to Equity ratio of close to 27 times whereas the industry PE is around 28times as per analysts. The return on Equity for Escorts Kubota Limited or ROE is nearly 12%
Significance of PE or ROE
Any company’s share price in relation to its earnings per share are compared using the price-to-earnings ratio. In side-by-side comparisons, analysts and investors use it to ascertain the relative value of a company’s shares.
A metric used to assess a company’s financial performance is return on equity, or ROE. Net income is divided by shareholders’ equity to arrive at this figure. ROE is a measure of a company’s return on net assets since shareholders’ equity is calculated by subtracting debt from assets.
HDFC Mutual fund increases stake
HDFC Mutual Fund intimated Escorts Kabota though its release on 4 March 2024 said that the aggregate holdings of the HDFC Mutual Fund schemes in “Escorts Kubota Limited” (stands updated). The HDFC Mutual Fund at the close of the business hours on February 27, 2025 held 5.42% of the paid up equity share capital of the Company
HDFC Mutual fund’s holding in Escorts Kabota before the fresh acquisition of shares stood at 54,59,105 or 4.96% holding iof HDFC Mutual fund in Escorts Kubota.
Post the fresh acquisition of 5,04,465 fresh shares by HDFC Mutual Fund, in Escorts Kabota HDFC Mutual Fund held about ed 59,63,570 equity shares in Escorts which meant 5.42% shares in Escorts Kabota,
The shares of Escorts Kabota were purchased from open markets , said HDFC Mutual Fund
(Paid up Equity Share stood at was at Rs. 1 09 99 26 670/- comprising 10 99 92 667 Voting Rights Fauity Shares of ₹10-each).
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