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Kahan Packaging (BOM:543979) ROE % : 85.28% (As of Mar. 2023)


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What is Kahan Packaging ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Kahan Packaging's annualized net income for the quarter that ended in Mar. 2023 was ₹10.3 Mil. Kahan Packaging's average Total Stockholders Equity over the quarter that ended in Mar. 2023 was ₹12.1 Mil. Therefore, Kahan Packaging's annualized ROE % for the quarter that ended in Mar. 2023 was 85.28%.

The historical rank and industry rank for Kahan Packaging's ROE % or its related term are showing as below:

BOM:543979' s ROE % Range Over the Past 10 Years
Min: 2.18   Med: 18.18   Max: 85.28
Current: 85.28

During the past 4 years, Kahan Packaging's highest ROE % was 85.28%. The lowest was 2.18%. And the median was 18.18%.

BOM:543979's ROE % is ranked better than
98.16% of 380 companies
in the Packaging & Containers industry
Industry Median: 6.045 vs BOM:543979: 85.28

Kahan Packaging ROE % Historical Data

The historical data trend for Kahan Packaging's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Kahan Packaging ROE % Chart

Kahan Packaging Annual Data
Trend Mar20 Mar21 Mar22 Mar23
ROE %
2.18 3.21 33.15 85.28

Kahan Packaging Semi-Annual Data
Mar20 Mar21 Mar22 Mar23
ROE % 2.18 3.21 33.15 85.28

Competitive Comparison of Kahan Packaging's ROE %

For the Packaging & Containers subindustry, Kahan Packaging's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Kahan Packaging's ROE % Distribution in the Packaging & Containers Industry

For the Packaging & Containers industry and Consumer Cyclical sector, Kahan Packaging's ROE % distribution charts can be found below:

* The bar in red indicates where Kahan Packaging's ROE % falls into.



Kahan Packaging ROE % Calculation

Kahan Packaging's annualized ROE % for the fiscal year that ended in Mar. 2023 is calculated as

ROE %=Net Income (A: Mar. 2023 )/( (Total Stockholders Equity (A: Mar. 2022 )+Total Stockholders Equity (A: Mar. 2023 ))/ count )
=10.338/( (6.953+17.291)/ 2 )
=10.338/12.122
=85.28 %

Kahan Packaging's annualized ROE % for the quarter that ended in Mar. 2023 is calculated as

ROE %=Net Income (Q: Mar. 2023 )/( (Total Stockholders Equity (Q: Mar. 2022 )+Total Stockholders Equity (Q: Mar. 2023 ))/ count )
=10.338/( (6.953+17.291)/ 2 )
=10.338/12.122
=85.28 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is one times the annual (Mar. 2023) net income data. ROE % is displayed in the 30-year financial page.


Kahan Packaging  (BOM:543979) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Mar. 2023 )
=Net Income/Total Stockholders Equity
=10.338/12.122
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(10.338 / 175.179)*(175.179 / 121.2245)*(121.2245 / 12.122)
=Net Margin %*Asset Turnover*Equity Multiplier
=5.9 %*1.4451*10.0004
=ROA %*Equity Multiplier
=8.53 %*10.0004
=85.28 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Mar. 2023 )
=Net Income/Total Stockholders Equity
=10.338/12.122
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (10.338 / 13.069) * (13.069 / 18.339) * (18.339 / 175.179) * (175.179 / 121.2245) * (121.2245 / 12.122)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.791 * 0.7126 * 10.47 % * 1.4451 * 10.0004
=85.28 %

Note: The net income data used here is one times the annual (Mar. 2023) net income data. The Revenue data used here is one times the annual (Mar. 2023) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Kahan Packaging ROE % Related Terms

Thank you for viewing the detailed overview of Kahan Packaging's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Kahan Packaging (BOM:543979) Business Description

Traded in Other Exchanges
N/A
Address
212, Jhalawar Service Premises, E S Patanwalla Compound, Opp. Shreyas Talkies, L.B.S.Marg, Ghatkopar - West, Mumbai, MH, IND, 400086
Kahan Packaging Ltd is a company in the business of manufacturing and supply of Polypropylene / High Density Polyethylene, HDPE Woven Fabric- Laminated, HDPE/PP woven sacks, Woven Fabric- UnLaminated, PP Woven Bag, PP Woven Bag with Liner, Printed Laminates for Flexible Packaging, woven polymer based products of different weight, sizes and colors as per customer's specifications. It offers customized bulk packaging solutions to business-to business (B2B) manufacturers catering to different industries such as Agro Pesticides Industry, Cement Industry, Chemical Industry, Fertilizer Industry, Food Products Industry.

Kahan Packaging (BOM:543979) Headlines

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