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Modern DairiesBOM:519287 -2.66%57 Return-on-Tangible-Equity is 2.35% as of Mar. 2026, which is 77% below its 10-year median of 10.21. GuruFocus rates BOM:519287 with a GF Score™ of 57/100 and a GF Value™ of ₹40.10 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 1,883 Consumer Packaged Goods companies, Modern Dairies ranks better than 57.62% 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. Modern Dairies's annualized net income for the quarter that ended in Mar. 2026 was ₹13 Mil. Modern Dairies's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹554 Mil. Therefore, Modern Dairies's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 2.35%.
The historical rank and industry rank for Modern Dairies's Return-on-Tangible-Equity or its related term are showing as below:
BOM:519287'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 10.21 Med: 10.21 Max: 10.51
Current: 10.51
During the past 13 years, Modern Dairies's highest Return-on-Tangible-Equity was 10.51%. The lowest was 10.21%. And the median was 10.21%.
BOM:519287's Return-on-Tangible-Equity is ranked better than 57.62% of 1883
companies
in the Consumer Packaged Goods industry
Industry Median: 8.05
vs BOM:519287: 10.51
Modern Dairies (BOM:519287) 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.
Modern Dairies Return-on-Tangible-Equity Related Terms
Modern Dairies Return-on-Tangible-Equity Historical Data
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The historical data trend for Modern Dairies'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:519287 vs KHC, GIS: Return-on-Tangible-Equity Comparison
For the Packaged Foods subindustry, Modern Dairies'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.
Modern Dairies Return-on-Tangible-Equity vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Modern Dairies's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Modern Dairies'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 2.35% mean?
Modern Dairies (BOM:519287) has a Return-on-Tangible-Equity of 2.35% 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 Modern Dairies and its competitors. This is 77% below median its historical median of 10.21. Over the past decade, Modern Dairies' Return-on-Tangible-Equity has ranged from 10.21 to 10.51. According to the industry distribution chart, Modern Dairies ranks #798 out of 1883 companies in the Consumer Packaged Goods industry, placing it in the top 42.4%.
Is Modern Dairies' Return-on-Tangible-Equity too high?
Modern Dairies' current Return-on-Tangible-Equity of 2.35% is 77% below median its 10-year median of 10.21. Over the past 10 years, this metric has ranged from a low of 10.21 to a high of 10.51. The Consumer Packaged Goods industry median Return-on-Tangible-Equity is 8.05. Modern Dairies' value of 2.35% is 70.8% below this industry median. Based on the distribution chart, Modern Dairies ranks #798 out of 1883 companies in the Consumer Packaged Goods industry, which is above the industry midpoint. Overall, Modern Dairies has a GF Score™ of 57/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Modern Dairies' Return-on-Tangible-Equity compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Modern Dairies ranks #798 out of 1883 companies for Return-on-Tangible-Equity. This puts Modern Dairies in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.05. Modern Dairies' value of 2.35% is 70.8% below this benchmark. Historically, Modern Dairies' own Return-on-Tangible-Equity has ranged from 10.21 to 10.51 over the past decade. While the company's 10-year median is 10.21 vs. the industry median of 8.05, Modern Dairies has consistently been below 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 Consumer Packaged Goods company?
The median Return-on-Tangible-Equity among Consumer Packaged Goods companies is 8.05, based on 1,883 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. Modern Dairies's current Return-on-Tangible-Equity of 2.35% is 70.8% below 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 Modern Dairies and its competitors. For the Consumer Packaged Goods industry, the median Return-on-Tangible-Equity is 8.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Modern Dairies's current Return-on-Tangible-Equity is 2.35%, which is 77% below median its own 10-year median of 10.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Modern Dairies stock overvalued right now?
Based on GuruFocus' analysis, Modern Dairies (BOM:519287) is currently considered Possible Value Trap. The stock's GF Value™ is ₹40.10, compared to a current price of ₹27.44 — trading 31.6% below its estimated fair value. The current Return-on-Tangible-Equity is 2.35%, which is 77% below median its 10-year median of 10.21 and 70.8% below the Consumer Packaged Goods industry median of 8.05. Modern Dairies' overall GF Score™ is 57/100 with 4 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 Modern Dairies (BOM:519287), the current Return-on-Tangible-Equity is 2.35% 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 Modern Dairies (BOM:519287) Overvalued in 2026?
Based on GuruFocus' analysis, Modern Dairies stock appears to be undervalued.
The current stock price of ₹27.44 is trading 31.6% below its estimated GF Value™ of ₹40.10.
GuruFocus considers Modern Dairies to be Possible Value Trap.
Key valuation signals for BOM:519287:
Return-on-Tangible-Equity: 2.35% (77% below median its 10-year median of 10.21)
GF Value™: ₹40.10 vs. price of ₹27.44 (31.6% below fair value)
Industry Position: 70.8% below the Consumer Packaged Goods median (#798 of 1883)
No single metric tells the full story. See the BOM:519287 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Modern Dairies Ltd is engaged in the business of manufacturing and processing milk and milk products. Its products include casein, lactose, skimmed milk powder, cheese, butter, pure ghee, and premix. The company caters to both domestic and international markets. It has also launched fresh dairy products like milk in sachets, Curd, fermented milk products, and cheese in its own brand.
57GF Score
Get the complete analysis for BOM:519287
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