ROE in indian markets are declining. why?

Discussion in 'Ask A Query About Your Stock Picks And Portfolio' started by w4wealth, Feb 18, 2016.

  1. w4wealth

    w4wealth Well-Known Member

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  2. w4wealth

    w4wealth Well-Known Member

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  3. w4wealth

    w4wealth Well-Known Member

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    ROE declined from 20 % in 2007 to 6.45% in 2015 which is below g-sec yield of 8.3%.
     
  4. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

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    Does it depends on sample size? Method is changed? How there can be so much change in just one year. I think something is wrong somewhere.
     
  5. w4wealth

    w4wealth Well-Known Member

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    not in one year. 2007 to 2015 ie, 8 years.
     
  6. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

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    Ah, misread year. I think sample size has to be checked. Also sector has to be checked whether same or not. E.g. Steel sector or commodity sector may have high RoE earlier and low RoE now. Service sector may have low RoE then and high RoE now.
     
  7. w4wealth

    w4wealth Well-Known Member

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    this figure may b avg of all listed co.s.-6.45%
     
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