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Sonal AdhesivesBOM:526901 -1.59%63 Return-on-Tangible-Equity is 19.53% as of Mar. 2026, which is 8% above its 10-year median of 18.01. GuruFocus rates BOM:526901 with a GF Score™ of 63/100 and a GF Value™ of ₹99.56 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 1,570 Chemicals companies, Sonal Adhesives ranks better than 80.06% 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. Sonal Adhesives's annualized net income for the quarter that ended in Mar. 2026 was ₹20 Mil. Sonal Adhesives's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹104 Mil. Therefore, Sonal Adhesives's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 19.53%.
The historical rank and industry rank for Sonal Adhesives's Return-on-Tangible-Equity or its related term are showing as below:
BOM:526901'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -183.6 Med: 18.01 Max: 53.73
Current: 14.19
During the past 13 years, Sonal Adhesives's highest Return-on-Tangible-Equity was 53.73%. The lowest was -183.60%. And the median was 18.01%.
BOM:526901's Return-on-Tangible-Equity is ranked better than 80.06% of 1570
companies
in the Chemicals industry
Industry Median: 5.88
vs BOM:526901: 14.19
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.
Sonal Adhesives Return-on-Tangible-Equity Related Terms
Sonal Adhesives Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Sonal Adhesives'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:526901 vs LIN, SHW, ECL: Return-on-Tangible-Equity Comparison
For the Specialty Chemicals subindustry, Sonal Adhesives'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.
Sonal Adhesives Return-on-Tangible-Equity vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Sonal Adhesives's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Sonal Adhesives'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 19.53% mean?
Sonal Adhesives (BOM:526901) has a Return-on-Tangible-Equity of 19.53% 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 Sonal Adhesives and its competitors. This is near median its historical median of 18.01. According to the industry distribution chart, Sonal Adhesives ranks #313 out of 1570 companies in the Chemicals industry, placing it in the top 19.9%.
Is Sonal Adhesives' Return-on-Tangible-Equity too high?
Sonal Adhesives' current Return-on-Tangible-Equity of 19.53% is near median its 10-year median of 18.01. The Chemicals industry median Return-on-Tangible-Equity is 5.88. Sonal Adhesives' value of 19.53% is 232.1% above this industry median. Based on the distribution chart, Sonal Adhesives ranks #313 out of 1570 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Sonal Adhesives has a GF Score™ of 63/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Sonal Adhesives' Return-on-Tangible-Equity compare to LIN and SHW?
According to the Chemicals industry distribution chart, Sonal Adhesives ranks #313 out of 1570 companies for Return-on-Tangible-Equity. This places Sonal Adhesives in the top 20% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.88. Sonal Adhesives' value of 19.53% is 232.1% above this benchmark. While the company's 10-year median is 18.01 vs. the industry median of 5.88, Sonal Adhesives 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 Chemicals company?
The median Return-on-Tangible-Equity among Chemicals companies is 5.88, based on 1,570 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. Sonal Adhesives's current Return-on-Tangible-Equity of 19.53% is 232.1% 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 Sonal Adhesives and its competitors. For the Chemicals industry, the median Return-on-Tangible-Equity is 5.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sonal Adhesives's current Return-on-Tangible-Equity is 19.53%, which is near median its own 10-year median of 18.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sonal Adhesives stock overvalued right now?
Based on GuruFocus' analysis, Sonal Adhesives (BOM:526901) is currently considered Possible Value Trap. The stock's GF Value™ is ₹99.56, compared to a current price of ₹46.48 — trading 53.3% below its estimated fair value. The current Return-on-Tangible-Equity is 19.53%, which is near median its 10-year median of 18.01 and 232.1% above the Chemicals industry median of 5.88. Sonal Adhesives' overall GF Score™ is 63/100 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 Sonal Adhesives (BOM:526901), the current Return-on-Tangible-Equity is 19.53% 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 Sonal Adhesives (BOM:526901) Overvalued in 2026?
Based on GuruFocus' analysis, Sonal Adhesives stock appears to be undervalued.
The current stock price of ₹46.48 is trading 53.3% below its estimated GF Value™ of ₹99.56.
GuruFocus considers Sonal Adhesives to be Possible Value Trap.
Key valuation signals for BOM:526901:
Return-on-Tangible-Equity: 19.53% (near median its 10-year median of 18.01)
GF Value™: ₹99.56 vs. price of ₹46.48 (53.3% below fair value)
Industry Position: 232.1% above the Chemicals median (#313 of 1570)
No single metric tells the full story. See the BOM:526901 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sonal Adhesives Ltd is an India-based manufacturer engaged in the production of adhesive tapes, emulsions, and plastic ropes. The company operates in a single segment: packing products. Its products are marketed under the brand names SONAL and ADICRYL. The company is a manufacturer and exporter of BOPP self-adhesive tapes and specialty adhesives and emulsions. It exports its products globally, including to countries such as Spain, Nigeria, Germany, Middle Eastern countries, and across the African continent, and majority of its revenue comes from India.
63GF Score
Get the complete analysis for BOM:526901
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