Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
NelcoBOM:504112 +9.04%63 Return-on-Tangible-Equity is 7.53% as of Jun. 2026, which is 65% below its 10-year median of 21.56. GuruFocus rates BOM:504112 with a GF Score™ of 63/100 and a GF Value™ of ₹815.90 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 2,383 Hardware companies, Nelco ranks worse than 58.88% 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. Nelco's annualized net income for the quarter that ended in Jun. 2026 was ₹94 Mil. Nelco's average shareholder tangible equity for the quarter that ended in Jun. 2026 was ₹1,242 Mil. Therefore, Nelco's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 7.53%.
The historical rank and industry rank for Nelco's Return-on-Tangible-Equity or its related term are showing as below:
BOM:504112'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 2.68 Med: 21.56 Max: 51.9
Current: 3.11
During the past 13 years, Nelco's highest Return-on-Tangible-Equity was 51.90%. The lowest was 2.68%. And the median was 21.56%.
BOM:504112's Return-on-Tangible-Equity is ranked worse than 58.88% of 2383
companies
in the Hardware industry
Industry Median: 5.4
vs BOM:504112: 3.11
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.
Nelco Return-on-Tangible-Equity Related Terms
Nelco Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Nelco'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:504112 vs CSCO, MSI, HPE: Return-on-Tangible-Equity Comparison
For the Communication Equipment subindustry, Nelco'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.
Nelco Return-on-Tangible-Equity vs Hardware Industry
For the Hardware industry and Technology sector, Nelco's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Nelco'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 7.53% mean?
Nelco (BOM:504112) has a Return-on-Tangible-Equity of 7.53% 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 Nelco and its competitors. This is 65% below median its historical median of 21.56. Over the past decade, Nelco's Return-on-Tangible-Equity has ranged from 2.68 to 51.90. According to the industry distribution chart, Nelco ranks #1403 out of 2383 companies in the Hardware industry, placing it in the top 58.9%.
Is Nelco's Return-on-Tangible-Equity too high?
Nelco's current Return-on-Tangible-Equity of 7.53% is 65% below median its 10-year median of 21.56. Over the past 10 years, this metric has ranged from a low of 2.68 to a high of 51.90. The Hardware industry median Return-on-Tangible-Equity is 5.40. Nelco's value of 7.53% is 39.4% above this industry median. Based on the distribution chart, Nelco ranks #1403 out of 2383 companies in the Hardware industry, which is below the industry midpoint. Overall, Nelco has a GF Score™ of 63/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nelco's Return-on-Tangible-Equity compare to CSCO and MSI?
According to the Hardware industry distribution chart, Nelco ranks #1403 out of 2383 companies for Return-on-Tangible-Equity. This places Nelco in the lower half of its industry. The industry median Return-on-Tangible-Equity is 5.40. Nelco's value of 7.53% is 39.4% above this benchmark. Historically, Nelco's own Return-on-Tangible-Equity has ranged from 2.68 to 51.90 over the past decade. While the company's 10-year median is 21.56 vs. the industry median of 5.40, Nelco 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 Hardware company?
The median Return-on-Tangible-Equity among Hardware companies is 5.40, based on 2,383 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. Nelco's current Return-on-Tangible-Equity of 7.53% is 39.4% 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 Nelco and its competitors. For the Hardware industry, the median Return-on-Tangible-Equity is 5.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nelco's current Return-on-Tangible-Equity is 7.53%, which is 65% below median its own 10-year median of 21.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nelco stock overvalued right now?
Based on GuruFocus' analysis, Nelco (BOM:504112) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹815.90, compared to a current price of ₹1,013.00 — trading 24.2% above its estimated fair value. The current Return-on-Tangible-Equity is 7.53%, which is 65% below median its 10-year median of 21.56 and 39.4% above the Hardware industry median of 5.40. Nelco's overall GF Score™ is 63/100 with 7 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 Nelco (BOM:504112), the current Return-on-Tangible-Equity is 7.53% 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 Nelco (BOM:504112) Overvalued in 2026?
Based on GuruFocus' analysis, Nelco stock appears to be overvalued.
The current stock price of ₹1,013.00 is trading 24.2% above its estimated GF Value™ of ₹815.90.
GuruFocus considers Nelco to be Modestly Overvalued.
Key valuation signals for BOM:504112:
Return-on-Tangible-Equity: 7.53% (65% below median its 10-year median of 21.56)
GF Value™: ₹815.90 vs. price of ₹1,013.00 (24.2% above fair value)
Industry Position: 39.4% above the Hardware median (#1403 of 2383)
No single metric tells the full story. See the BOM:504112 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nelco Ltd is in the business of providing domestic satellite communication services to close user group (CUG) networks via Satellite System on non-exclusive basis within the territorial boundary of India under the VSAT, ISP and other Licenses and authorisation granted by Department of Telecommunications, Government of India. The company operates in a single reportable segment, namely Network Systems, comprising Satellite Communication (Satcom) Services, which include equipment sales, maintenance, and other allied services. The group earns revenue from providing Satellite communication connectivity systems and solutions through sale of goods, providing installation and annual maintenance services, renting of goods, Integrated Security & Surveillance services.
63GF Score
Get the complete analysis for BOM:504112
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
BOM:504112 has been successfully added to your 
