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SRM ContractorsNSE:SRM -0.21%50 Return-on-Tangible-Asset is 22.26% as of Mar. 2026, which is 50% above its 10-year median of 14.87. GuruFocus rates NSE:SRM with a GF Score™ of 50/100. The stock has 1 warning sign investors should review. Among 1,788 Construction companies, SRM Contractors ranks better than 95.47% 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. SRM Contractors's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹2,164 Mil. SRM Contractors's average total tangible assets for the quarter that ended in Mar. 2026 was ₹9,721 Mil. Therefore, SRM Contractors's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 22.26%.
The historical rank and industry rank for SRM Contractors's Return-on-Tangible-Asset or its related term are showing as below:
NSE:SRM'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 7.36 Med: 14.87 Max: 17.57
Current: 17.57
During the past 6 years, SRM Contractors's highest Return-on-Tangible-Asset was 17.57%. The lowest was 7.36%. And the median was 14.87%.
NSE:SRM's Return-on-Tangible-Asset is ranked better than 95.47% of 1788
companies
in the Construction industry
Industry Median: 3.085
vs NSE:SRM: 17.57
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.
SRM Contractors Return-on-Tangible-Asset Related Terms
SRM Contractors Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for SRM Contractors'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.
NSE:SRM vs PWR, FIX, EME: Return-on-Tangible-Asset Comparison
For the Engineering & Construction subindustry, SRM Contractors'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.
SRM Contractors Return-on-Tangible-Asset vs Construction Industry
For the Construction industry and Industrials sector, SRM Contractors's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where SRM Contractors'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 (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 22.26% mean?
SRM Contractors (NSE:SRM) has a Return-on-Tangible-Asset of 22.26% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on SRM Contractors and its competitors. This is 50% above median its historical median of 14.87. Over the past decade, SRM Contractors' Return-on-Tangible-Asset has ranged from 7.36 to 17.57. According to the industry distribution chart, SRM Contractors ranks #81 out of 1788 companies in the Construction industry, placing it in the top 4.5%.
Is SRM Contractors' Return-on-Tangible-Asset too high?
SRM Contractors' current Return-on-Tangible-Asset of 22.26% is 50% above median its 10-year median of 14.87. Over the past 10 years, this metric has ranged from a low of 7.36 to a high of 17.57. The Construction industry median Return-on-Tangible-Asset is 3.09. SRM Contractors' value of 22.26% is 621.6% above this industry median. Based on the distribution chart, SRM Contractors ranks #81 out of 1788 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, SRM Contractors has a GF Score™ of 50/100, reflecting its overall financial health beyond just this single metric.
How does SRM Contractors' Return-on-Tangible-Asset compare to PWR and FIX?
According to the Construction industry distribution chart, SRM Contractors ranks #81 out of 1788 companies for Return-on-Tangible-Asset. This places SRM Contractors in the top 5% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.09. SRM Contractors' value of 22.26% is 621.6% above this benchmark. Historically, SRM Contractors' own Return-on-Tangible-Asset has ranged from 7.36 to 17.57 over the past decade. While the company's 10-year median is 14.87 vs. the industry median of 3.09, SRM Contractors 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 a Construction company?
The median Return-on-Tangible-Asset among Construction companies is 3.09, based on 1,788 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. SRM Contractors's current Return-on-Tangible-Asset of 22.26% is 621.6% 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 SRM Contractors and its competitors. For the Construction industry, the median Return-on-Tangible-Asset is 3.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SRM Contractors's current Return-on-Tangible-Asset is 22.26%, which is 50% above median its own 10-year median of 14.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SRM Contractors stock overvalued right now?
SRM Contractors (NSE:SRM) has a current Return-on-Tangible-Asset of 22.26%. The current Return-on-Tangible-Asset is 22.26%, which is 50% above median its 10-year median of 14.87 and 621.6% above the Construction industry median of 3.09. SRM Contractors' overall GF Score™ is 50/100 with 1 warning sign 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 SRM Contractors (NSE:SRM), the current Return-on-Tangible-Asset is 22.26% as of Mar. 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.
SRM Contractors Ltd is an engineering, construction, and development company. It is engaged in the construction of roads (including bridges), tunnels, drainage systems, irrigation projects, food control infrastructure, slope stabilisation works, and other miscellaneous civil construction activities in Jammu and Kashmir and Ladakh. The business of the company is segregated into the following core service verticals: Road Projects, Tunnel Projects, Slope Stabilization, and Miscellaneous Civil Construction. It undertakes construction works both as an EPC contractor and on an item rate basis for infrastructure projects.
50GF Score
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