What is ROCE (Return on Capital Employed) | ROE vs ROCE - Which is more Important. ?

This fundamental analysis video will discuss the concepts of Return on capital employed (ROCE) and Return on Equity and highlight the difference between ROCE and Roe and which ratio is more important in which scenario for you to make the right investing decision as a stock market beginner. Today, ROCE and ROE will be explained in detail in this Hindi video on the stock market.
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[@gyanendrajaiswar4833]

12:12 ROE is Showing 82.24% , But While Calculating as per you Taught, Net Profit ÷ Share Capital + Total Reserves... (6036) ÷ (216 + 7433) = (0.78809244) and Converting into % it's Coming (78.80%) , then How ROE Comes 82.24% ... Didn't Understand.....

[@travelstory0687]

I have also found the same problem in the calculation.

[@himanshusharma1950]

They way you teach is excellent with simple examples make us understand in very easy way.Today I kept on watching your videos from lesson 1 and I don't even how 3-4 hrs I spend with valuable knowledge thank you😊

[@pranjalkamra]

Glad to hear that!

[@rhitambanerjee8474]

Sir please make a lesson on what parameters we should check before selecting a pharma stock. Just like you did for banking sector. Thank you.

[@BhawaniSingh-qw1qn]

Bhai koi bhi company ho agar tujhe uska dhandha jam rha h to khareed le .... If you are uncomfortable just leave it ...

[@hemantadeori7753]

P

[@YogeshPatil-te8hg]

My small suggestion, take any company whichever sector it belongs. Only thing matters that company is the LEADER of that sector.

[@yt_bharat]

@@BhawaniSingh-qw1qn what is dhandaa jam raha?

[@AlkalineMind]

@@yt_bharat haaye mere angreeez ke 🤣

[@SAMARSINGH-do6or]

My all doubts of ROCE AND ROE has been cleared by this video.. Thank you so much sir 😘😘

[@Abhishek.Sharma1991]

I always wondered what ROCE meant & was unaware of how it differs from ROE. Thanks for answering all those questions. Plus I never knew about limitations on use of ROE & ROCE. I thought that both could be used for evaluating all stocks - w/wo debt. Thanks for explaining limitations on usage.

[@ritwikunique9827]

Thank-you so much sir mere saare doubts clear hogyee voht hi deeply smjhayaa aapne 💙🙏

[@SiyaVibes]

Wow.. totally a fan of series and the way you teach in such detail.. Really trying to learn presentation skills from you 🙌🙌

[@upendrakheni1111]

Nice post thanks

[@avgGamer662]

Aao kabhi haveli pe

[@snehasishsahoo6529]

Why debt free companies like HUL give intrest ?? Please tell me

[@drsteviejasengnsangma8739]

4 years old video but still so relevant and better(if not the best) than many new videos

[@businessstories5761]

Thanks a lot pranjal sir, probably no book would have been able explain this to me in the way you did.😃😃🙌

[@pranjalkamra]

Thank you so much for your appreciation😊

[@Copyninjaaa]

@@pranjalkamra I didn't understand the last part... 😣😣

[@sureshchaudhary4671]

@@Copyninjaaa 1

[@sukhbirkhatkar2813]

Explained nicely . Amazing

[@Mehul_bhati]

@@pranjalkamra op

[@sidharthchawda]

Thank you Kamran bhai. Indeed a wonderfully explained, sound more motivational than educational..👍🏻👍🏻👍🏻

[@shenkyagrawal1847]

Sir 4 saal ho gaye apka HUL whi ka whi hai 😅

[@varindermander273]

Prince

[@Easy_Devidend]

But uska earning per share grow kra 2 times devidend per year

[@PSYCH066..]

Bhai dusre FINANCIAL RATIO V Dekhne HOTE HAI KHALI ROCE MTT DEKH

[@mindtrade123]

😂😂😂

[@rsmishra3902]

Excellently explained to enable layman investor to make them alert. Thanks

[@mehulharkawat]

Sir thanks aapse bohot kuch seekhne ko milta hai maine aapke mostly har video dekha hai

[@dr.parasdayma2759]

I had no idea that learning finance could be this easy. Thank you so much Pranjal for this series. Definately, this is the kick start in my investing Journey. Thank you so much for this in depth knowledge. I am actually enjoying this stock market classes with you. Thank you you once again. And I regret why I haven't seen this 2 years before. But koi nai der aaye....durast aaye....

[@aryangupta8343]

Hey

[@ajaybedre4199]

So are you a successful investor now?

[@anujpal9928]

Hi Sir, i could never understand these two ratios with such ease, as you explained. Now i have good understanding about these. Your videos are really enhancing my knowledge. Thanks.

[@thsanam3119]

Sir according to your suggestion when i was calculate ROE calculation of HUL ROE found differ

[@motionpictures7649]

Yes

[@bandanarai4746]

Same problem

[@GlamourCreation]

samjhaya aapne bahut badhiya he.. 5-7 time video or dekhnge to kuch jyada samjh aa jayega

[@tahirbhat2616]

To khush kab hona hai😄😄

[@rajeshchandeliya922]

Thanks for you Pranjal ji samajh me bahut badiya se aaya h aapka talent gajab h samajhane ka me bilkul freshar hu mujhe iski abc bhi nahi pata h lakin aapne itani bariki sesamajhaya ki ab mujhe bhi share market ka baare me dikhana padegaa thanks bro ❤❤❤❤❤

[@karanjethva5525]

Hello Sir, As you shown HUL has no Debt then what is 28cr interest HUL is giving?

[@vikassharma-sm9cz]

I also hv same doubt🤔

[@divyangmanglani3915]

Companies usually take short term loan. So, maybe company has paid interest on that loan.

[@divyangmanglani3915]

And the debt here is shown only the Long term debt. Hope you get it.😉

[@donnydudebawa]

Following

[@tarunprakashrai]

Same query..is it a short term loan or previous loan or something else??

[@chiragthumar5214]

Aap bahut achi information deto ho bhai, aapse hame bahut kuch sikhne ko milta he, thanks Bhai

[@pranjalkamra]

Thankyou so much!

[@samitjain7936]

Sir ek question hai , after all fundamental analysis , technical analysis bhi karna hoga na stock selection ke liye for long term ?

[@nareshchahal4764]

Fundamental or Technical analysis m kya antr h kyunki m bilkul new hun abhi please explain

[@harshitbhandari9144]

fundamental is for long term techical is for short term. its just prediction of price on basis of charts .

[@canadianpizzaburger1]

thanks for very good teaching sir. I joined you investing academy program. That's very knowledgeable. everyone should join who want to be perfect in share market. thanks

[@pranjalkamra]

Thankyou so much for your appreciation! Glad to hear this!

[@rebelvi676]

Fabulous teaches Pranjal bhaiya👌 But 1-आप अपनी बुक का हिन्दी वर्जन कब लॉन्च कर रहे हैं? 2-Ticker app(mob) मैं बड़ी शिद्दत से दोनों का उसका इंतजार कर रहा हूँ। Thanks 💐💐💐💐💐💐💐

[@raushanKumar-gj1ei]

Thanks sir bahut achha information diya aapne

[@Gaonkisanskriti]

बहुत अच्छा सर धन्‍यवाद

[@meet965]

Thank u pranjal sir U r the best to explain everything

[@prasadpatel6508]

Making quarantine more interesting , Thank you to all who had made an effort of adding value to our lives ...🍾⭐ More power to you ❤️

[@pranjalkamra]

It means alot. thankyou!

[@prashantkhandelwal2663]

Sir yee bit coin share Market se juda hota hai kya

[@snehasishsahoo6529]

@@pranjalkamra why debt free companies like HUL give intrest ??

[@SKH307]

@@pranjalkamra sir what should be a good ROE % please reply back

[@sonali0017]

Sir Thank you so much for these wonderful videos.

[@Ali__javaid]

Sir how do you the minute concepts about all these things, from where you have learned all these minute details? Plzz answer if you get the time..

[@sangamnaik9693]

zerodha.com/varsity/module/fundamental-analysis/ read this whole module, and you will also understand all the minute details. Atleast read the financial ratios chapters, that should be enough.

[@jaisood7826]

I think he has done a course on share market

[@VivekSir90]

Wonderful video Thank you Pranjal

[@shahbazkhan5258]

Hi.. Pranjal.. Thank you for sharing such an amazing content and that too in well organized manner.. We all have been listening so much about the Intrinsic Values of the companies. It will be great if you can make detailed videos covering the different methods (with example taking a specific company) to calculate intrinsic values. Please cover methods if they differ based on industries...…………. Thank you once again for educating us.... Seen ur full interview....really motivating.

[@usmanmuhammed7633]

hi sir Assalam

[@shivaniJoshi-il5tg]

such a clear and perfect explanation. Thank you Sir

[@Nitai_Nimai]

Thank you 🙏💕 sir Aapke ye ache kaam se desh ka fayda hoga Bcze market m investment badhega toh GDP badhega 😊 Once again. Thanks a lot 🙏💕 And we like you most 😁

[@radanruti8464]

@@dipakkamdi5129 isn't true bro.... value investing needs discipline which most of the guys lack.

[@radanruti8464]

@@dipakkamdi5129 bro... like every coin has two sides.so as investing the other is patience. It takes time, and you are lacking it. Any way it may be your choice but you keep it to you and make money why are you trying to manipulate us.

[@VinodKumar-sw4jk]

Sir, serial wise video show nhi ho rahe hai...chapter 8 bhi show nhi hoo paa raha ... Btw... I am feeling so bless to gain a knowledge From uh with the great manner..

[@satwajisuryawanshi4989]

Sir thanks very much But sir, Kindly make a video on how to analyze FMCG Companies?? Please sir..

[@arnavashmit3531]

Crystal clear concept........less time more concept ❤❤

[@rachitmanglani2870]

Hello, I am watching this playlist from the start and learnt alot, I'm a new investor and through your video I learnt investing, all the videos were very useful but one thing i didn't find on your page nor any other pages on KZbin that if stock's financial, management is good but how to value stock. That's very important and need to learn that. Please make a video on that.

[@pranjalkamra]

Yes, will include that in coming videos for sure.

[@prasunsinha3181]

So nicely explained 👍 really greatful

[@joshisahil]

Wornderful explanation of how high divdend yeild increases ROE.😍

[@joshisahil]

Thank you sir for your response🙏

[@vipulkhandelwal220]

Thanks alot Sir, got the concept.

[@tejindersingh-wo8zm]

For the one year cource on fundamentals, what is the average number of hours per week expected to be invested

[@vishnuvardhanBR-gr1cp]

First time I understood it properly

[@bhavikjayaswal]

Sir first comment i fill like it is paid course 🙌🙌

[@samsushahnazshiza8378]

Wonderful teaching

[@bikramjitsaha3924]

Sir,need dedicated videos on intraday trading based on technical analysis..please make such video..great follower of you..hope you will consider our request

[@myusuf3553]

Excellent explanation.. Bravo!

[@parth2371993]

How to justify high P/E and P/B with High ROCE and ROE ??

[@INDIA19THAT47ISBHARAT]

Most probably Potential and moat of the company.

[@vishalk1704]

Bilkul clear ji...🙏🦅

[@ankurkapoor5043]

Thank you for such elaborative lectures. It helps to build a soild foundation in understanding stock market. One thing I want to know is how should we interpret decreasing promoter stake in good stocks? Examples are Infosys, Alkem laboratory and Kotak Mahindra bank.

[@vivekjain2261]

By checking promoter shareholding %

[@Rahul_khichii]

Thank you

[@sandipanborah3170]

Awesome content guys! Really appreciated. I would request you tomake videos on 1) interpreting Balance Sheet, P&L & Cash Flow statements and the relationship between them. 2) Important pointers to analyse various sectors like FMCG, Auto, Chemical, Diversified, Chemicals etc. Thank you!

[@pranjalkamra]

Yes definitely, will try to include all the topics in the coming classes.

[@sapnagupta7235]

If I wish to make cash flow stmt for my company, how I do the same and

[@rickybhowal5330]

@@pranjalkamra hi sir i would like to take cource of value investing how to contact you your tele care service is off, tell me a way to make contact with you. Thanks

[@monikadagakabra5685]

Extremely good lessons for all who r interested in share market. Hats off to u sir for teaching with such an ease. U r a very good mentor.

[@ParivartanYatra]

Great Guru... Simply made it Simple...

[@pranjalkamra]

Thankyou so much!

[@murtazabohra5388]

just love the way you simplify these concepts

[@pranjalkamra]

Glad to hear that!

[@sunitsingh8887]

Your way of explaining is very clear,pl through some light on correction factor,while selecting stock.

[@deepakrai642]

Sir plzz, make 1 lesson on value investing by including all these ratio and annual reporting

[@pranjalkamra]

Definitely, i will try to make one.

[@deepakrai642]

@@pranjalkamra thanks sir, plzz make one.

[@modernsystems9198]

Very well explained. Keep up the good work

[@utkarshloshali8622]

Sir ZERODHA par intraday trading ke liye ek tutorial vedio bna dijiye🙏🙏

[@pratikwankhede6218]

Intra day kyu karna hai? Trading and investments are very different.

[@NaveenUltimategamerEE]

sir Unilever ke example me jab debt 0 tha to interest kyon dia company ne??

[@SachinKumar-dk8qc]

Your way of teaching is awesome sir, jab se ye series dekhna start kiya h, I feel like one day I will become an intelligent investor🤑Thanks sir for such awesome content..

[@pranjalkamra]

Glad to know the videos are helpful! keep learning!

[@harshvardhansharma5732]

Hello Sir such a knowledgable series thank you for this . I have a question about HUL P&L statement! I hope you reply me Q. Why HUL p&L statement showing Interest when company have no DEBT ?

[@jaisood7826]

I think you should check again according to companies act 2013 a company cannot rely on equity only

[@Aseemsinghpawar]

really love the way you explain things. binge watching the whole series. grabbing popcorn, pen and paper

[@robertodavian67]

sorry to be offtopic but does any of you know of a method to log back into an Instagram account..? I was stupid lost the account password. I love any assistance you can give me.

[@deckerbentlee1257]

@Roberto Davian instablaster =)

[@robertodavian67]

@Decker Bentlee i really appreciate your reply. I found the site on google and im in the hacking process now. Seems to take quite some time so I will reply here later when my account password hopefully is recovered.

[@robertodavian67]

@Decker Bentlee It worked and I actually got access to my account again. Im so happy! Thanks so much, you really help me out !

[@deckerbentlee1257]

@Roberto Davian glad I could help :)

[@LalluRam-to2dp]

kindly create the video on REIT , what is the best how to invest and with comparison also ...

[@kshitizsancheti]

So well explained!!! Loved it

[@pranjalkamra]

Glad you liked it!

[@AkkshayMShaah]

Sir, I wish to do BSE course on Value Investing, but I guess the course isn't available on Finology anymore.. so from where can I do the course? Please help me out. Thanks. Regards, Akshay S

[@PankajBhanwani]

Sir when hul is having zero debt then why is interest

[@saijackhammer]

I am having the same query

[@alok0440]

Same question from my side

[@milandarji9585]

May be it's of short term debt.

[@dhananjay1kumar]

Yes, I have also same question ?

[@Shailukool]

I also have same question. If borrowings are zero, why 28 cr interest is paid?

[@AabhasVerma]

Thank you sir!

[@devendratanwar8486]

Sir, when there is no debt on HUL then why it is paying interest

[@AbhiLearnings]

Yes same query from my side

[@sandeeptiwari5189]

Maybe some friends of hul are now charging them with interest

[@mehtavishal4614]

It's not paying interest bro due depreciation and some other factors the operation profit and net profit is different from so there is a difference between the value of roe and roce

[@azaankhan3365]

Hi sir. Why did you not included current liabilities and non current liabilities (it is long term liabilities i.e non current liabilities.) Explain it to me the concept.

[@mehtavishal4614]

@@azaankhan3365 it's totally different things liabilities are yet to pay which doesn't affect the value of roe and roce. Those are credit economical transactions

[@hiranmoy76]

Thanks a ton. It will take time to root inside the mind.

[@SUPRO_MOUNTAINTALES_RIDER58]

How much shud I invest in this 5 stock after suscribing

[@pranjalkamra]

If you have any spare cash you can invest in those stocks.

[@dhranadipak1661]

Can you pls say name of these five stock?

[@samarthbisht1309]

Thank you sir for such a great video

[@pranjalkamra]

Glad you liked it!

[@ThePrashant011]

watching the series in 2021 lockdown, Excellent explanation.made it very simple to understand all the Financials which seemed very tough for a non commerce guy like me till date. Excellent video Kudos pranjal sir. 👍🔥

[@pranjalkamra]

Glad it was helpful!

[@snehasishsahoo6529]

@@pranjalkamra HUL is debt free , so how can a debt free company give intrest ? Please reply

[@dampijain]

A fantastic series on value investing. It has really changed the way to look into market. Before following you i used to buy 'script' with no research but now I think to buy a 'business'. If i had followed you earlier, i would have not lost money in equity market. Anyways, now i following you and would like to learn more on value investing. I would like to request you so if you can prepare a video or so and share with a kind of flowchart to choose good businesses. As there are many parameters to considers before proceeding or discarding a stock, so such flowchart may help us giving a proper and ordered direction to stop or to continue towards finalizing any stock. Please prepare a video on it. Thanks and regards Kamlesh

[@mayurvalte76]

Love this series sir , In lockdown you giving lot of valuable content , thank you sir

[@pranjalkamra]

Glad to hear that! Pleasure to share my knowledge!

[@amitrastogi9046]

Clear much thank sir

[@sandeshk91]

I have been commenting on all of your videos just to appreciate the effort u took to prepare these! As everyone said, i dont think any book /wiki would have explained better than you. U have chosen a right profession of being a mentor which is not an easy job as I can find only handful such guys who could teach such complexity topics in such a ease.

[@pranjalkamra]

Thank u soo much sir. I read dis comment 1st thing in d mrng and it made my day

[@gdsharma1334]

Brother thanks for the knowledge shared, 1 question: if HUL is having 0 debt than on what they are paying Interest... Wanna understand that calculation. Will wait for the revert. Thanks 🙏😊

[@Vishal_Singh_149]

Intermittent low bass Mike sound same as when we test Mike by putting fingers on it

[@shadabuddinsiddiqui5208]

Book value and dividend yield ke bare me bataye

[@sahilporwal2099]

Sir, Small case me sip pe ek video bnaiye... Mene ek small case banaya jiski value thi ₹32800..Unme mene sip start kia.. uski Initial investment aa rhi he ₹32800 and next month se installment bta rha he ₹11000..to fund invest kis type se hoga ₹11000 me Isko thoda solve kijiye please.. 🙏🏻

[@nikhilkamboj1115]

Sir ap bhut se point ka clarification ache se ni smja pate yha koi professional ni h thoda calculation easy aur dheere se smjaye

[@2minutestocks]

Bhai mere Isase asaan mujhe nahi lagta koi or samjha payega Pranjal sir is the best in the calculations of stock market❤

[@tagore161]

Bhai aap ke liye mutual fund hi thik rahega

[@SusantaRoy-x9w]

Nind se uth jao aap,, smajh me aa jayega.

[@inderpreetsingh246]

😂​@@tagore161

[@inderpreetsingh246]

​@@SusantaRoy-x9w😂

[@aakashjhunjhunwala7188]

Sir I have doubt that for ROCE we consider operating profit to calculate the ratio on the profit earned before interest tax , depreciation, exceptional items etc but the same should be considered in ROE also , in that case also earning before tax , depreciation, exceptional items is the actual earning ??

[@tereliyeashu]

One of the best videos so far. Beautifully explained. Thanks a ton!

[@pranjalkamra]

Glad it was helpful! Thankyou so much!

[@ankitgurjar9441]

Best video in these series👌👍😎

[@deblinadatta8406]

The concept is almost clear, Thank You so much.

[@pranjalkamra]

Glad it helped!

[@davidrealm]

Bro I just want to suggest you that please add section of fundamental analysis and technical analysis

[@j2f972]

Sir please tell why roe is very High and stock cagr is not good. For example HUL ROE is 60 and it's 5 year cagr is only 11 and ITC 5 year average roe is 20 and cagr is 3. According to Charlie Munger in the long run the company will follow it's roe .

[@bakersdozen4164]

U teach well but sometimes you confuse us in examples. In the end of examples you declare scenario Aand B. Declare it at the onset.

[@rajkrroshan]

after dividing net profit by total equity it gaves a figure of 78.81approx...than how would it possible to increased in ROE by 4%..bhaiya can you please explain it..i literally confused from that figure.

[@shubhamanand9956]

Sir issme "reserved" wala case pura clear nhi hua...will yu plzz explain me .. overall video is outstanding..luv yu sir from jharkhand dhanbad..big fan of yours...😊😊

[@shraddhakalyankar5607]

man u r really a great person

[@aquibkhan3026]

08:50 Q??? Khudka = 100 Dost = 100 Total revenue = 400 ROCE = (400-200)/(100+100) =100% ROE = (400-200)/(100equity) = 200% Aapne ROE = (400-100)/(100) = 300% kiya hai

[@RishabhRaghwendra]

@pranjalkamra sir on ticker.finology.in how total liabilities is equal to total assets under Balance sheet section ?Please tell I am a beginner

[@hemantsoni211]

Hello sir, Hul debt free company hain fir bhi p&l statement me intrest 17cr or 15cr or 22cr kyu show ho raha hain Can anyone tell me the right answer?

[@darshitjoshi8350]

Thanks sir.

[@sonunigam3038]

Am a beginner .can you explain me how can I start trading in Kotak Mahindra kit prox...?????

[@pranavsaxena664]

Great sir!

[@navneetmukherjee9592]

ROE ROCE CONFUSING High dividend yields high ROE NOT CLEARED Sir

[@sumitmondal2198]

Loving this series

[@kisankadam2294]

Kya abhi available he opportunistic stocks? Kuch wattsape no. Dedo contact karne ke liye ...

[@IronMan-gz8tf]

Sir in first case of ROE hamne 100rs pe 100rs bnaye fir 100 rs dividend me nikaal liye to munafa 200rs ka kaise hua munafa to 100rs ka hi hua aur 1rs pe to 1rs ki hi kamai hui to aapne 1rs pe 2rs ki kamai kaise btai?The second case is understood easily rather than first.

[@Haridasvideos1987]

Thanks.