Abstract:
Return on Equity (ROE) attempts to assess pecuniary performance of an organization during a particular time period. It is premeditated by dividing net returns by shareholders' equity. Thus, ROE indicates how efficiently a company generates its profit. Accordingly, an upper ROE indicates efficiency of the company in generating profit and vice versa. As a best practice, a company should aim an ROE so as to equivalent to or more than the average ROE of the concerned industry. The expansion of the CPSEs is directed towards diminution of poverty, attainment of self-sufficiency, deletion of inequalities in terms of earnings, employment enhancement, etc. However, the goals set for the CPSEs could not be attained successfully and this leads to the introduction of disinvestment of the CPSEs in the year 1991-92. In this background, the intent of the cram is to scan the trends in equity returns with reference to selected industries in Indian CPSEs in the ongoing disinvestment atmosphere during the time phase 2010-11 to 2019-20. Overall, the selected manufacturing and service sector industries generates optimistic as well as pessimistic equity returns. However, no specific trends in equity takings are observed during the selected study phase. On the average, hotel & tourist services industry disclose highest equity returns followed by fertilizers industry, financial services industry, crude oil industry, trading & marketing industry and textiles industry. Affirmative equity returns in majority of the selected industries have played an important role in the augmentation of the economy.
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