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Kennametal IndiaBOM:505890 +2.16%93 Return-on-Tangible-Equity is 25.63% as of Mar. 2026, which is 97% above its 10-year median of 13.01. GuruFocus rates BOM:505890 with a GF Score™ of 93/100 and a GF Value™ of ₹2,880.67 (Fairly Valued). The stock has 1 warning sign investors should review. Among 2,968 Industrial Products companies, Kennametal India ranks better than 82.48% 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. Kennametal India's annualized net income for the quarter that ended in Mar. 2026 was ₹2,056 Mil. Kennametal India's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹8,022 Mil. Therefore, Kennametal India's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 25.63%.
The historical rank and industry rank for Kennametal India's Return-on-Tangible-Equity or its related term are showing as below:
BOM:505890'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 5.63 Med: 13.01 Max: 18.8
Current: 17.84
During the past 13 years, Kennametal India's highest Return-on-Tangible-Equity was 18.80%. The lowest was 5.63%. And the median was 13.01%.
BOM:505890's Return-on-Tangible-Equity is ranked better than 82.48% of 2968
companies
in the Industrial Products industry
Industry Median: 6.775
vs BOM:505890: 17.84
Kennametal India (BOM:505890) 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.
Kennametal India Return-on-Tangible-Equity Related Terms
Kennametal India Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Kennametal 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:505890 vs SNA, RBC, SWK: Return-on-Tangible-Equity Comparison
For the Tools & Accessories subindustry, Kennametal 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.
Kennametal India Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Kennametal India's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Kennametal 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 (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 25.63% mean?
Kennametal India (BOM:505890) has a Return-on-Tangible-Equity of 25.63% 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 Kennametal India and its competitors. This is 97% above median its historical median of 13.01. Over the past decade, Kennametal India's Return-on-Tangible-Equity has ranged from 5.63 to 18.80. According to the industry distribution chart, Kennametal India ranks #520 out of 2968 companies in the Industrial Products industry, placing it in the top 17.5%.
Is Kennametal India's Return-on-Tangible-Equity too high?
Kennametal India's current Return-on-Tangible-Equity of 25.63% is 97% above median its 10-year median of 13.01. Over the past 10 years, this metric has ranged from a low of 5.63 to a high of 18.80. The Industrial Products industry median Return-on-Tangible-Equity is 6.78. Kennametal India's value of 25.63% is 278.3% above this industry median. Based on the distribution chart, Kennametal India ranks #520 out of 2968 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Kennametal India has a GF Score™ of 93/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Kennametal India's Return-on-Tangible-Equity compare to SNA and RBC?
According to the Industrial Products industry distribution chart, Kennametal India ranks #520 out of 2968 companies for Return-on-Tangible-Equity. This places Kennametal India in the top 18% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 6.78. Kennametal India's value of 25.63% is 278.3% above this benchmark. Historically, Kennametal India's own Return-on-Tangible-Equity has ranged from 5.63 to 18.80 over the past decade. While the company's 10-year median is 13.01 vs. the industry median of 6.78, Kennametal 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 an Industrial Products company?
The median Return-on-Tangible-Equity among Industrial Products companies is 6.78, based on 2,968 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. Kennametal India's current Return-on-Tangible-Equity of 25.63% is 278.3% 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 Kennametal India and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Equity is 6.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kennametal India's current Return-on-Tangible-Equity is 25.63%, which is 97% above median its own 10-year median of 13.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kennametal India stock overvalued right now?
Based on GuruFocus' analysis, Kennametal India (BOM:505890) is currently considered Fairly Valued. The stock's GF Value™ is ₹2,880.67, compared to a current price of ₹3,061.40 — trading 6.3% above its estimated fair value. The current Return-on-Tangible-Equity is 25.63%, which is 97% above median its 10-year median of 13.01 and 278.3% above the Industrial Products industry median of 6.78. Kennametal India's overall GF Score™ is 93/100 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 Kennametal India (BOM:505890), the current Return-on-Tangible-Equity is 25.63% 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 Kennametal India (BOM:505890) Overvalued in 2026?
Based on GuruFocus' analysis, Kennametal India stock appears to be overvalued.
The current stock price of ₹3,061.40 is trading 6.3% above its estimated GF Value™ of ₹2,880.67.
GuruFocus considers Kennametal India to be Fairly Valued.
Key valuation signals for BOM:505890:
Return-on-Tangible-Equity: 25.63% (97% above median its 10-year median of 13.01)
GF Value™: ₹2,880.67 vs. price of ₹3,061.40 (6.3% above fair value)
Industry Position: 278.3% above the Industrial Products median (#520 of 2968)
No single metric tells the full story. See the BOM:505890 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kennametal India Ltd is engaged in the manufacturing and trading of hard metal products and machine tools, also known as machining solutions, serving both domestic and international markets. It operates through two main segments, the Machining Solutions Group and Hard Metal Products. The Machining Solutions Group's sales include machines, fixtures, spare parts, and after-sales services. The Hard Metal Products segment is the key revenue driver, offering metal cutting tools, tooling systems, and wear-resistant components for various industries such as automotive, aerospace, energy, and engineering. The company's operations are mainly based in India, with a presence in Germany, the USA, and China, and the majority of its revenue comes from India.
93GF Score
Get the complete analysis for BOM:505890
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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