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Chennai PetroleumBOM:500110 +2.57%66 Return-on-Tangible-Equity is 37.25% as of Jun. 2026, which is 30% above its 10-year median of 28.65. GuruFocus rates BOM:500110 with a GF Score™ of 66/100 and a GF Value™ of ₹998.46 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 943 Oil & Gas companies, Chennai Petroleum ranks better than 92.15% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Chennai Petroleum's annualized net income for the quarter that ended in Jun. 2026 was ₹41,254 Mil. Chennai Petroleum's average shareholder tangible equity for the quarter that ended in Jun. 2026 was ₹110,751 Mil. Therefore, Chennai Petroleum's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 37.25%.
The historical rank and industry rank for Chennai Petroleum's Return-on-Tangible-Equity or its related term are showing as below:
BOM:500110'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -91.99 Med: 28.65 Max: 75.31
Current: 44.66
During the past 13 years, Chennai Petroleum's highest Return-on-Tangible-Equity was 75.31%. The lowest was -91.99%. And the median was 28.65%.
BOM:500110's Return-on-Tangible-Equity is ranked better than 92.15% of 943
companies
in the Oil & Gas industry
Industry Median: 6.73
vs BOM:500110: 44.66
Chennai Petroleum (BOM:500110) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity 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 Return-on-Tangible-Equitys can be extremely high.
Chennai Petroleum Return-on-Tangible-Equity Related Terms
Chennai Petroleum Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Chennai Petroleum's Return-on-Tangible-Equity 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:500110 vs MPC, VLO, PSX: Return-on-Tangible-Equity Comparison
For the Oil & Gas Refining & Marketing subindustry, Chennai Petroleum's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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.
Chennai Petroleum Return-on-Tangible-Equity vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Chennai Petroleum's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Chennai Petroleum's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 37.25% mean?
Chennai Petroleum (BOM:500110) has a Return-on-Tangible-Equity of 37.25% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Chennai Petroleum and its competitors. This is 30% above median its historical median of 28.65. According to the industry distribution chart, Chennai Petroleum ranks #74 out of 943 companies in the Oil & Gas industry, placing it in the top 7.8%.
Is Chennai Petroleum's Return-on-Tangible-Equity too high?
Chennai Petroleum's current Return-on-Tangible-Equity of 37.25% is 30% above median its 10-year median of 28.65. The Oil & Gas industry median Return-on-Tangible-Equity is 6.73. Chennai Petroleum's value of 37.25% is 453.5% above this industry median. Based on the distribution chart, Chennai Petroleum ranks #74 out of 943 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Chennai Petroleum has a GF Score™ of 66/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Chennai Petroleum's Return-on-Tangible-Equity compare to MPC and VLO?
According to the Oil & Gas industry distribution chart, Chennai Petroleum ranks #74 out of 943 companies for Return-on-Tangible-Equity. This places Chennai Petroleum in the top 8% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 6.73. Chennai Petroleum's value of 37.25% is 453.5% above this benchmark. While the company's 10-year median is 28.65 vs. the industry median of 6.73, Chennai Petroleum 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-Equity for an Oil & Gas company?
The median Return-on-Tangible-Equity among Oil & Gas companies is 6.73, based on 943 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Chennai Petroleum's current Return-on-Tangible-Equity of 37.25% is 453.5% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Chennai Petroleum and its competitors. For the Oil & Gas industry, the median Return-on-Tangible-Equity is 6.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chennai Petroleum's current Return-on-Tangible-Equity is 37.25%, which is 30% above median its own 10-year median of 28.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chennai Petroleum stock overvalued right now?
Based on GuruFocus' analysis, Chennai Petroleum (BOM:500110) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹998.46, compared to a current price of ₹1,211.25 — trading 21.3% above its estimated fair value. The current Return-on-Tangible-Equity is 37.25%, which is 30% above median its 10-year median of 28.65 and 453.5% above the Oil & Gas industry median of 6.73. Chennai Petroleum's overall GF Score™ is 66/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Chennai Petroleum (BOM:500110), the current Return-on-Tangible-Equity is 37.25% 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 Chennai Petroleum (BOM:500110) Overvalued in 2026?
Based on GuruFocus' analysis, Chennai Petroleum stock appears to be overvalued.
The current stock price of ₹1,211.25 is trading 21.3% above its estimated GF Value™ of ₹998.46.
GuruFocus considers Chennai Petroleum to be Modestly Overvalued.
Key valuation signals for BOM:500110:
Return-on-Tangible-Equity: 37.25% (30% above median its 10-year median of 28.65)
GF Value™: ₹998.46 vs. price of ₹1,211.25 (21.3% above fair value)
Industry Position: 453.5% above the Oil & Gas median (#74 of 943)
No single metric tells the full story. See the BOM:500110 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chennai Petroleum Corp Ltd manufactures and supplies petrol products in India. The Manali refinery of the company in India produces fuel, wax, lube, and petrochemical feedstock. The company also has a wax plant that produces paraffin wax for the manufacturing of candle wax, waterproof formulations, and match wax. The company's main products include liquefied petroleum gas, motor spirit, superior kerosene oil, high-speed diesel, fuel oil, hexane, and petrochemical feedstocks. A large majority of sales are derived from petroleum products.
66GF Score
Get the complete analysis for BOM:500110
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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