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The Indonesian capital market has become a vital pillar of the national economy, providing opportunities for companies to obtain funding while simultaneously providing an investment vehicle for the wider community. In this context, stocks are the most sought-after instrument due to the potential returns they offer. However, stock investment is constantly faced with uncertainty, with fluctuating stock prices often presenting challenges for investors, especially those without a thorough understanding of the company's fundamental performance. An interesting phenomenon, the starting point of this research, is the quite extreme price movements of BIPI shares over the past decade. From 2015 to 2021, BIPI's share price remained stagnant at Rp 50 per share, a condition often referred to by market participants as "gocap" (goat capit). This condition reflects low investor interest in the company's shares, possibly due to high risk perceptions or unconvincing fundamental performance.

The profitability ratio is used as a benchmark in determining stock returns, because the profitability ratio is a ratio that measures how efficiently a company uses its assets and manages its operations. The higher the profit generated, the higher the stock return that investors will get. Included in this ratio are ROE (Return on Equity) and NPM (Net Profit Margin). The design of this research is a Literature Review or literature review. ROE is often referred to as profitability of own capital. This amount is obtained by dividing net profit after tax by total capital. A high ROE number shows the industry's ability to generate profits for shareholders. On the other hand, a high level of profitability will cause less external funds to be used. Companies with high profitability will have large internal funds. An increase in ROE increases the company's sales value, which has an impact on share prices. These two factors have a positive influence on stock returns, which means companies with high ROE and net profit margin tend to have higher stock returns. Therefore, investors can consider ROE and net profit margin as indicators of company performance that can influence stock returns when choosing investments.