Stock Market Today, March 4 -- 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%

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 compan...