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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. Sovereign Diamonds's annualized net income for the quarter that ended in Mar. 2026 was ₹-12.9 Mil. Sovereign Diamonds's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹124.0 Mil. Therefore, Sovereign Diamonds's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was -10.43%.
The historical rank and industry rank for Sovereign Diamonds's Return-on-Tangible-Equity or its related term are showing as below:
BOM:523826'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -33.57 Med: 3.9 Max: 9.91
Current: -33.57
During the past 13 years, Sovereign Diamonds's highest Return-on-Tangible-Equity was 9.91%. The lowest was -33.57%. And the median was 3.90%.
BOM:523826's Return-on-Tangible-Equity is ranked worse than 92.68% of 1066
companies
in the Retail - Cyclical industry
Industry Median: 8.455
vs BOM:523826: -33.57
Sovereign Diamonds (BOM:523826) 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.
Sovereign Diamonds Return-on-Tangible-Equity Related Terms
Sovereign Diamonds Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Sovereign Diamonds'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.
Sovereign Diamonds Return-on-Tangible-Equity Chart
BOM:523826 vs TPR: Return-on-Tangible-Equity Comparison
For the Luxury Goods subindustry, Sovereign Diamonds'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.
Sovereign Diamonds Return-on-Tangible-Equity vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Sovereign Diamonds's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Sovereign Diamonds'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 -10.43% mean?
Sovereign Diamonds (BOM:523826) has a Return-on-Tangible-Equity of -10.43% 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 Sovereign Diamonds and its competitors. According to the industry distribution chart, Sovereign Diamonds ranks #988 out of 1066 companies in the Retail - Cyclical industry, placing it in the top 92.7%.
Is Sovereign Diamonds' Return-on-Tangible-Equity too high?
Sovereign Diamonds' current Return-on-Tangible-Equity is -10.43%. Based on the distribution chart, Sovereign Diamonds ranks #988 out of 1066 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, Sovereign Diamonds has a GF Score™ of 45/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sovereign Diamonds' Return-on-Tangible-Equity compare to TPR?
According to the Retail - Cyclical industry distribution chart, Sovereign Diamonds ranks #988 out of 1066 companies for Return-on-Tangible-Equity. This places Sovereign Diamonds in the lower half of its industry. The industry median Return-on-Tangible-Equity is 8.46. 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 Retail - Cyclical company?
The median Return-on-Tangible-Equity among Retail - Cyclical companies is 8.46, based on 1,066 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. 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 Sovereign Diamonds and its competitors. For the Retail - Cyclical industry, the median Return-on-Tangible-Equity is 8.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sovereign Diamonds's current Return-on-Tangible-Equity is -10.43%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sovereign Diamonds stock overvalued right now?
Based on GuruFocus' analysis, Sovereign Diamonds (BOM:523826) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹14.22, compared to a current price of ₹26.54 — trading 86.6% above its estimated fair value. The current Return-on-Tangible-Equity is -10.43%. Sovereign Diamonds' overall GF Score™ is 45/100 with 3 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 Sovereign Diamonds (BOM:523826), the current Return-on-Tangible-Equity is -10.43% 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 Sovereign Diamonds (BOM:523826) Overvalued in 2026?
Based on GuruFocus' analysis, Sovereign Diamonds stock appears to be overvalued.
The current stock price of ₹26.54 is trading 86.6% above its estimated GF Value™ of ₹14.22.
GuruFocus considers Sovereign Diamonds to be Significantly Overvalued.
Key valuation signals for BOM:523826:
Return-on-Tangible-Equity: -10.43%
GF Value™: ₹14.22 vs. price of ₹26.54 (86.6% above fair value)
No single metric tells the full story. See the BOM:523826 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sovereign Diamonds Ltd is engaged in manufacturing, selling of Gold Jewellery, Diamond Studded Jewellery and Silver item. The company supplies its products to retail brands and retail chains. It has only one operating segment Jewellery Business.
45GF Score
Get the complete analysis for BOM:523826
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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