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Elgi EquipmentsBOM:522074 -2.07%97 Return-on-Tangible-Asset is 12.58% as of Jun. 2026, which is 26% above its 10-year median of 9.95. GuruFocus rates BOM:522074 with a GF Score™ of 97/100 and a GF Value™ of ₹664.86 (Fairly Valued). The stock has 3 warning signs investors should review. Among 3,086 Industrial Products companies, Elgi Equipments ranks better than 92.87% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Elgi Equipments's annualizedNet Income for the quarter that ended in Jun. 2026 was ₹4,132 Mil. Elgi Equipments's average total tangible assets for the quarter that ended in Jun. 2026 was ₹32,851 Mil. Therefore, Elgi Equipments's annualized Return-on-Tangible-Asset for the quarter that ended in Jun. 2026 was 12.58%.
The historical rank and industry rank for Elgi Equipments's Return-on-Tangible-Asset or its related term are showing as below:
BOM:522074'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 3.39 Med: 9.95 Max: 18.55
Current: 14.89
During the past 13 years, Elgi Equipments's highest Return-on-Tangible-Asset was 18.55%. The lowest was 3.39%. And the median was 9.95%.
BOM:522074's Return-on-Tangible-Asset is ranked better than 92.87% of 3086
companies
in the Industrial Products industry
Industry Median: 3.455
vs BOM:522074: 14.89
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Elgi Equipments Return-on-Tangible-Asset Related Terms
Elgi Equipments Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Elgi Equipments's Return-on-Tangible-Asset 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.
BOM:522074 vs GEV, ETN, PH: Return-on-Tangible-Asset Comparison
For the Specialty Industrial Machinery subindustry, Elgi Equipments's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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.
Elgi Equipments Return-on-Tangible-Asset vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Elgi Equipments's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Elgi Equipments's Return-on-Tangible-Asset falls into.
* 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 Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Jun. 2026) net income data.
What does a Return-on-Tangible-Asset of 12.58% mean?
Elgi Equipments (BOM:522074) has a Return-on-Tangible-Asset of 12.58% as of Jun. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Elgi Equipments and its competitors. This is 26% above median its historical median of 9.95. Over the past decade, Elgi Equipments' Return-on-Tangible-Asset has ranged from 3.39 to 18.55. According to the industry distribution chart, Elgi Equipments ranks #220 out of 3086 companies in the Industrial Products industry, placing it in the top 7.1%.
Is Elgi Equipments' Return-on-Tangible-Asset too high?
Elgi Equipments' current Return-on-Tangible-Asset of 12.58% is 26% above median its 10-year median of 9.95. Over the past 10 years, this metric has ranged from a low of 3.39 to a high of 18.55. The Industrial Products industry median Return-on-Tangible-Asset is 3.46. Elgi Equipments' value of 12.58% is 264.1% above this industry median. Based on the distribution chart, Elgi Equipments ranks #220 out of 3086 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Elgi Equipments has a GF Score™ of 97/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Elgi Equipments' Return-on-Tangible-Asset compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Elgi Equipments ranks #220 out of 3086 companies for Return-on-Tangible-Asset. This places Elgi Equipments in the top 7% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.46. Elgi Equipments' value of 12.58% is 264.1% above this benchmark. Historically, Elgi Equipments' own Return-on-Tangible-Asset has ranged from 3.39 to 18.55 over the past decade. While the company's 10-year median is 9.95 vs. the industry median of 3.46, Elgi Equipments has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for an Industrial Products company?
The median Return-on-Tangible-Asset among Industrial Products companies is 3.46, based on 3,086 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Elgi Equipments's current Return-on-Tangible-Asset of 12.58% is 264.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Elgi Equipments and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Asset is 3.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Elgi Equipments's current Return-on-Tangible-Asset is 12.58%, which is 26% above median its own 10-year median of 9.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Elgi Equipments stock overvalued right now?
Based on GuruFocus' analysis, Elgi Equipments (BOM:522074) is currently considered Fairly Valued. The stock's GF Value™ is ₹664.86, compared to a current price of ₹609.35 — trading 8.3% below its estimated fair value. The current Return-on-Tangible-Asset is 12.58%, which is 26% above median its 10-year median of 9.95 and 264.1% above the Industrial Products industry median of 3.46. Elgi Equipments' overall GF Score™ is 97/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Elgi Equipments (BOM:522074), the current Return-on-Tangible-Asset is 12.58% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Elgi Equipments (BOM:522074) Overvalued in 2026?
Based on GuruFocus' analysis, Elgi Equipments stock appears to be undervalued.
The current stock price of ₹609.35 is trading 8.3% below its estimated GF Value™ of ₹664.86.
GuruFocus considers Elgi Equipments to be Fairly Valued.
Key valuation signals for BOM:522074:
Return-on-Tangible-Asset: 12.58% (26% above median its 10-year median of 9.95)
GF Value™: ₹664.86 vs. price of ₹609.35 (8.3% below fair value)
Industry Position: 264.1% above the Industrial Products median (#220 of 3086)
No single metric tells the full story. See the BOM:522074 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Elgi Equipments Ltd manufactures air compressors and compressed air systems. The segment in which the group operates includes Air Compressors and Automotive Equipment. Its products include piston compressors, electric lubricated screw compressors, electric oil-free screw compressors, portable compressors, railway compressors, and air accessories. Geographically, it derives a majority of its revenue from India and also has a presence in the United States of America, Italy, Australia, and other countries. It serves the Textile; Manufacturing; Automotive; Agriculture and Construction industries.
97GF Score
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