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ZF Steering Gear (India)BOM:505163 -0.46%65 Return-on-Tangible-Equity is 10.29% as of Jun. 2026, which is 157% above its 10-year median of 4.00. GuruFocus rates BOM:505163 with a GF Score™ of 65/100 and a GF Value™ of ₹1,281.44 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 1,285 Vehicles & Parts companies, ZF Steering Gear (India) ranks worse than 64.98% 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. ZF Steering Gear (India)'s annualized net income for the quarter that ended in Jun. 2026 was ₹495 Mil. ZF Steering Gear (India)'s average shareholder tangible equity for the quarter that ended in Jun. 2026 was ₹4,807 Mil. Therefore, ZF Steering Gear (India)'s annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 10.29%.
The historical rank and industry rank for ZF Steering Gear (India)'s Return-on-Tangible-Equity or its related term are showing as below:
BOM:505163'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -0.39 Med: 4 Max: 15.42
Current: 4.18
During the past 13 years, ZF Steering Gear (India)'s highest Return-on-Tangible-Equity was 15.42%. The lowest was -0.39%. And the median was 4.00%.
BOM:505163's Return-on-Tangible-Equity is ranked worse than 64.98% of 1285
companies
in the Vehicles & Parts industry
Industry Median: 7.88
vs BOM:505163: 4.18
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.
ZF Steering Gear (India) Return-on-Tangible-Equity Related Terms
ZF Steering Gear (India) Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for ZF Steering Gear (India)'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:505163 vs ORLY, AZO: Return-on-Tangible-Equity Comparison
For the Auto Parts subindustry, ZF Steering Gear (India)'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.
ZF Steering Gear (India) Return-on-Tangible-Equity vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, ZF Steering Gear (India)'s Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where ZF Steering Gear (India)'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 10.29% mean?
ZF Steering Gear (India) (BOM:505163) has a Return-on-Tangible-Equity of 10.29% 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 ZF Steering Gear (India) and its competitors. This is 157% above median its historical median of 4.00. According to the industry distribution chart, ZF Steering Gear (India) ranks #835 out of 1285 companies in the Vehicles & Parts industry, placing it in the top 65%.
Is ZF Steering Gear (India)'s Return-on-Tangible-Equity too high?
ZF Steering Gear (India)'s current Return-on-Tangible-Equity of 10.29% is 157% above median its 10-year median of 4.00. The Vehicles & Parts industry median Return-on-Tangible-Equity is 7.88. ZF Steering Gear (India)'s value of 10.29% is 30.6% above this industry median. Based on the distribution chart, ZF Steering Gear (India) ranks #835 out of 1285 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, ZF Steering Gear (India) has a GF Score™ of 65/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does ZF Steering Gear (India)'s Return-on-Tangible-Equity compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, ZF Steering Gear (India) ranks #835 out of 1285 companies for Return-on-Tangible-Equity. This places ZF Steering Gear (India) in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.88. ZF Steering Gear (India)'s value of 10.29% is 30.6% above this benchmark. While the company's 10-year median is 4.00 vs. the industry median of 7.88, ZF Steering Gear (India) 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 Vehicles & Parts company?
The median Return-on-Tangible-Equity among Vehicles & Parts companies is 7.88, based on 1,285 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. ZF Steering Gear (India)'s current Return-on-Tangible-Equity of 10.29% is 30.6% 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-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 ZF Steering Gear (India) and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Equity is 7.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ZF Steering Gear (India)'s current Return-on-Tangible-Equity is 10.29%, which is 157% above median its own 10-year median of 4.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ZF Steering Gear (India) stock overvalued right now?
Based on GuruFocus' analysis, ZF Steering Gear (India) (BOM:505163) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹1,281.44, compared to a current price of ₹665.65 — trading 48.1% below its estimated fair value. The current Return-on-Tangible-Equity is 10.29%, which is 157% above median its 10-year median of 4.00 and 30.6% above the Vehicles & Parts industry median of 7.88. ZF Steering Gear (India)'s overall GF Score™ is 65/100 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For ZF Steering Gear (India) (BOM:505163), the current Return-on-Tangible-Equity is 10.29% 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 ZF Steering Gear (India) (BOM:505163) Overvalued in 2026?
Based on GuruFocus' analysis, ZF Steering Gear (India) stock appears to be undervalued.
The current stock price of ₹665.65 is trading 48.1% below its estimated GF Value™ of ₹1,281.44.
GuruFocus considers ZF Steering Gear (India) to be Significantly Undervalued.
Key valuation signals for BOM:505163:
Return-on-Tangible-Equity: 10.29% (157% above median its 10-year median of 4.00)
GF Value™: ₹1,281.44 vs. price of ₹665.65 (48.1% below fair value)
Industry Position: 30.6% above the Vehicles & Parts median (#835 of 1285)
No single metric tells the full story. See the BOM:505163 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ZF Steering Gear (India) Ltd produces and assembles steering systems for vehicles, buses, and tractors. The segment in which the group operates includes Auto Component and Renewable Energy. The company's product range includes steering systems, vane pumps, pump pulleys, oil reservoirs, steering and pump mounting brackets, steering columns, intermediate shafts, universal joints, bevel gears boxes, and power steering oil dexron II. ZF Steering operates its business activity through the plant located in Vadu Budruk, Pune. The company generates the majority of its revenue from the Auto component, which is engaged in the manufacturing of auto components.
65GF Score
Get the complete analysis for BOM:505163
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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