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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. Explicit Finance's annualized net income for the quarter that ended in Mar. 2026 was ₹-5.90 Mil. Explicit Finance's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹78.96 Mil. Therefore, Explicit Finance's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was -7.47%.
The historical rank and industry rank for Explicit Finance's Return-on-Tangible-Equity or its related term are showing as below:
BOM:530571'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -4.2 Med: -0.3 Max: 0.19
Current: -0.11
During the past 13 years, Explicit Finance's highest Return-on-Tangible-Equity was 0.19%. The lowest was -4.20%. And the median was -0.30%.
BOM:530571's Return-on-Tangible-Equity is ranked worse than 72.47% of 781
companies
in the Capital Markets industry
Industry Median: 6.52
vs BOM:530571: -0.11
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.
Explicit Finance Return-on-Tangible-Equity Related Terms
Explicit Finance Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Explicit Finance'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:530571 vs MS, GS, SCHW: Return-on-Tangible-Equity Comparison
For the Capital Markets subindustry, Explicit Finance'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.
Explicit Finance Return-on-Tangible-Equity vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Explicit Finance's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Explicit Finance'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 -7.47% mean?
Explicit Finance (BOM:530571) has a Return-on-Tangible-Equity of -7.47% 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 Explicit Finance and its competitors. According to the industry distribution chart, Explicit Finance ranks #566 out of 781 companies in the Capital Markets industry, placing it in the top 72.5%.
Is Explicit Finance's Return-on-Tangible-Equity too high?
Explicit Finance's current Return-on-Tangible-Equity is -7.47%. Based on the distribution chart, Explicit Finance ranks #566 out of 781 companies in the Capital Markets industry, which is below the industry midpoint. Overall, Explicit Finance has a GF Score™ of 44/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Explicit Finance's Return-on-Tangible-Equity compare to MS and GS?
According to the Capital Markets industry distribution chart, Explicit Finance ranks #566 out of 781 companies for Return-on-Tangible-Equity. This places Explicit Finance in the lower half of its industry. The industry median Return-on-Tangible-Equity is 6.52. 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 Capital Markets company?
The median Return-on-Tangible-Equity among Capital Markets companies is 6.52, based on 781 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 Explicit Finance and its competitors. For the Capital Markets industry, the median Return-on-Tangible-Equity is 6.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Explicit Finance's current Return-on-Tangible-Equity is -7.47%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Explicit Finance stock overvalued right now?
Based on GuruFocus' analysis, Explicit Finance (BOM:530571) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹2.49, compared to a current price of ₹8.00 — trading 221.3% above its estimated fair value. The current Return-on-Tangible-Equity is -7.47%. Explicit Finance's overall GF Score™ is 44/100 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 Explicit Finance (BOM:530571), the current Return-on-Tangible-Equity is -7.47% 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 Explicit Finance (BOM:530571) Overvalued in 2026?
Based on GuruFocus' analysis, Explicit Finance stock appears to be overvalued.
The current stock price of ₹8.00 is trading 221.3% above its estimated GF Value™ of ₹2.49.
GuruFocus considers Explicit Finance to be Significantly Overvalued.
Key valuation signals for BOM:530571:
Return-on-Tangible-Equity: -7.47%
GF Value™: ₹2.49 vs. price of ₹8.00 (221.3% above fair value)
No single metric tells the full story. See the BOM:530571 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Explicit Finance Ltd is an Indian non-banking financial company engaged in secondary capital market activities (mainly trading and financing), and also provides a wide range of services, including individual and corporate finance, loans against shares and securities, loans against property, and financial consultancy services. The company generates the majority of its revenue from the sale of shares.
44GF Score
Get the complete analysis for BOM:530571
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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