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Kansai Nerolac PaintsBOM:500165 +0.31%92 Return-on-Tangible-Equity is 6.75% as of Mar. 2026, which is 53% below its 10-year median of 14.39. GuruFocus rates BOM:500165 with a GF Score™ of 92/100 and a GF Value™ of ₹277.14 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,571 Chemicals companies, Kansai Nerolac Paints ranks better than 63.91% 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. Kansai Nerolac Paints's annualized net income for the quarter that ended in Mar. 2026 was ₹4,491 Mil. Kansai Nerolac Paints's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹66,557 Mil. Therefore, Kansai Nerolac Paints's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 6.75%.
The historical rank and industry rank for Kansai Nerolac Paints's Return-on-Tangible-Equity or its related term are showing as below:
BOM:500165'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 8.88 Med: 14.39 Max: 23.61
Current: 9.23
During the past 13 years, Kansai Nerolac Paints's highest Return-on-Tangible-Equity was 23.61%. The lowest was 8.88%. And the median was 14.39%.
BOM:500165's Return-on-Tangible-Equity is ranked better than 63.91% of 1571
companies
in the Chemicals industry
Industry Median: 5.9
vs BOM:500165: 9.23
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.
Kansai Nerolac Paints Return-on-Tangible-Equity Related Terms
Kansai Nerolac Paints Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Kansai Nerolac Paints'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:500165 vs LIN, SHW, ECL: Return-on-Tangible-Equity Comparison
For the Specialty Chemicals subindustry, Kansai Nerolac Paints'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.
Kansai Nerolac Paints Return-on-Tangible-Equity vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Kansai Nerolac Paints's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Kansai Nerolac Paints'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 (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 6.75% mean?
Kansai Nerolac Paints (BOM:500165) has a Return-on-Tangible-Equity of 6.75% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Kansai Nerolac Paints and its competitors. This is 53% below median its historical median of 14.39. Over the past decade, Kansai Nerolac Paints' Return-on-Tangible-Equity has ranged from 8.88 to 23.61. According to the industry distribution chart, Kansai Nerolac Paints ranks #567 out of 1571 companies in the Chemicals industry, placing it in the top 36.1%.
Is Kansai Nerolac Paints' Return-on-Tangible-Equity too high?
Kansai Nerolac Paints' current Return-on-Tangible-Equity of 6.75% is 53% below median its 10-year median of 14.39. Over the past 10 years, this metric has ranged from a low of 8.88 to a high of 23.61. The Chemicals industry median Return-on-Tangible-Equity is 5.90. Kansai Nerolac Paints' value of 6.75% is 14.4% above this industry median. Based on the distribution chart, Kansai Nerolac Paints ranks #567 out of 1571 companies in the Chemicals industry, which is above the industry midpoint. Overall, Kansai Nerolac Paints has a GF Score™ of 92/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Kansai Nerolac Paints' Return-on-Tangible-Equity compare to LIN and SHW?
According to the Chemicals industry distribution chart, Kansai Nerolac Paints ranks #567 out of 1571 companies for Return-on-Tangible-Equity. This puts Kansai Nerolac Paints in the upper half of its industry. The industry median Return-on-Tangible-Equity is 5.90. Kansai Nerolac Paints' value of 6.75% is 14.4% above this benchmark. Historically, Kansai Nerolac Paints' own Return-on-Tangible-Equity has ranged from 8.88 to 23.61 over the past decade. While the company's 10-year median is 14.39 vs. the industry median of 5.90, Kansai Nerolac Paints 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 a Chemicals company?
The median Return-on-Tangible-Equity among Chemicals companies is 5.90, based on 1,571 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. Kansai Nerolac Paints's current Return-on-Tangible-Equity of 6.75% is 14.4% 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 Kansai Nerolac Paints and its competitors. For the Chemicals industry, the median Return-on-Tangible-Equity is 5.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kansai Nerolac Paints's current Return-on-Tangible-Equity is 6.75%, which is 53% below median its own 10-year median of 14.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kansai Nerolac Paints stock overvalued right now?
Based on GuruFocus' analysis, Kansai Nerolac Paints (BOM:500165) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹277.14, compared to a current price of ₹211.15 — trading 23.8% below its estimated fair value. The current Return-on-Tangible-Equity is 6.75%, which is 53% below median its 10-year median of 14.39 and 14.4% above the Chemicals industry median of 5.90. Kansai Nerolac Paints' overall GF Score™ is 92/100 with 2 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 Kansai Nerolac Paints (BOM:500165), the current Return-on-Tangible-Equity is 6.75% 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.
Is Kansai Nerolac Paints (BOM:500165) Overvalued in 2026?
Based on GuruFocus' analysis, Kansai Nerolac Paints stock appears to be undervalued.
The current stock price of ₹211.15 is trading 23.8% below its estimated GF Value™ of ₹277.14.
GuruFocus considers Kansai Nerolac Paints to be Modestly Undervalued.
Key valuation signals for BOM:500165:
Return-on-Tangible-Equity: 6.75% (53% below median its 10-year median of 14.39)
GF Value™: ₹277.14 vs. price of ₹211.15 (23.8% below fair value)
Industry Position: 14.4% above the Chemicals median (#567 of 1571)
No single metric tells the full story. See the BOM:500165 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kansai Nerolac Paints Ltd manufacturers of paints and coatings in India. It . Focused on delivering coating solutions. Its products are Interior wall paints, Exterior wall paints, Wood Coating, Metal enamel paints, Paint ancillary, Waterproofing Services, Interior Textures, Exterior Textures, Tiling Solutions. Its services are Trained and Certified Painters, Extensive background check, Clean and dust-free process, Start-to-end guidance by experts, colour consultation, colour selection tools, On-Site Sanitation, Quotations based on requirement. The business activity as a single business segment viz. Paints and the sales substantially being in the domestic market.
92GF Score
Get the complete analysis for BOM:500165
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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