Return on equity for Nifty firms slip to record low of 12.9% in January

Average RoE now at record low of 12.9% as compared to 13.6% a year ago

The return on equity (RoE) ratio for top listed companies continues to deteriorate despite the uptick in earnings growth.
 
The average RoE for the top 50 listed firms, which are a part of the Nifty, has declined to a record low of 12.9 per cent, against 13.6 per cent last year.
 
The ratio was 15.5 per cent in January 2015 and 23.1 per cent in December 2007, on the eve of the big market correction of 2008.
 
In the last one year, the index companies’ underlying earnings per share has risen 3.5 per cent from Rs 401