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Welspun EnterprisesBOM:532553 +0.64%81 Return-on-Tangible-Equity is 19.84% as of Mar. 2026, which is 51% above its 10-year median of 13.13. GuruFocus rates BOM:532553 with a GF Score™ of 81/100 and a GF Value™ of ₹496.57 (Modestly Overvalued). The stock has 9 warning signs investors should review. Among 1,710 Construction companies, Welspun Enterprises ranks better than 65.91% 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. Welspun Enterprises's annualized net income for the quarter that ended in Mar. 2026 was ₹5,788 Mil. Welspun Enterprises's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹29,176 Mil. Therefore, Welspun Enterprises's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 19.84%.
The historical rank and industry rank for Welspun Enterprises's Return-on-Tangible-Equity or its related term are showing as below:
BOM:532553'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0.41 Med: 13.13 Max: 96.69
Current: 13.31
During the past 13 years, Welspun Enterprises's highest Return-on-Tangible-Equity was 96.69%. The lowest was 0.41%. And the median was 13.13%.
BOM:532553's Return-on-Tangible-Equity is ranked better than 65.91% of 1710
companies
in the Construction industry
Industry Median: 8.145
vs BOM:532553: 13.31
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.
Welspun Enterprises Return-on-Tangible-Equity Related Terms
Welspun Enterprises Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Welspun Enterprises'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:532553 vs PWR, FIX, EME: Return-on-Tangible-Equity Comparison
For the Engineering & Construction subindustry, Welspun Enterprises'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.
Welspun Enterprises Return-on-Tangible-Equity vs Construction Industry
For the Construction industry and Industrials sector, Welspun Enterprises's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Welspun Enterprises'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 19.84% mean?
Welspun Enterprises (BOM:532553) has a Return-on-Tangible-Equity of 19.84% 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 Welspun Enterprises and its competitors. This is 51% above median its historical median of 13.13. Over the past decade, Welspun Enterprises' Return-on-Tangible-Equity has ranged from 0.41 to 96.69. According to the industry distribution chart, Welspun Enterprises ranks #583 out of 1710 companies in the Construction industry, placing it in the top 34.1%.
Is Welspun Enterprises' Return-on-Tangible-Equity too high?
Welspun Enterprises' current Return-on-Tangible-Equity of 19.84% is 51% above median its 10-year median of 13.13. Over the past 10 years, this metric has ranged from a low of 0.41 to a high of 96.69. The Construction industry median Return-on-Tangible-Equity is 8.15. Welspun Enterprises' value of 19.84% is 143.6% above this industry median. Based on the distribution chart, Welspun Enterprises ranks #583 out of 1710 companies in the Construction industry, which is above the industry midpoint. Overall, Welspun Enterprises has a GF Score™ of 81/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Welspun Enterprises' Return-on-Tangible-Equity compare to PWR and FIX?
According to the Construction industry distribution chart, Welspun Enterprises ranks #583 out of 1710 companies for Return-on-Tangible-Equity. This puts Welspun Enterprises in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.15. Welspun Enterprises' value of 19.84% is 143.6% above this benchmark. Historically, Welspun Enterprises' own Return-on-Tangible-Equity has ranged from 0.41 to 96.69 over the past decade. While the company's 10-year median is 13.13 vs. the industry median of 8.15, Welspun Enterprises 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 Construction company?
The median Return-on-Tangible-Equity among Construction companies is 8.15, based on 1,710 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. Welspun Enterprises's current Return-on-Tangible-Equity of 19.84% is 143.6% 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 Welspun Enterprises and its competitors. For the Construction industry, the median Return-on-Tangible-Equity is 8.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Welspun Enterprises's current Return-on-Tangible-Equity is 19.84%, which is 51% above median its own 10-year median of 13.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Welspun Enterprises stock overvalued right now?
Based on GuruFocus' analysis, Welspun Enterprises (BOM:532553) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹496.57, compared to a current price of ₹593.45 — trading 19.5% above its estimated fair value. The current Return-on-Tangible-Equity is 19.84%, which is 51% above median its 10-year median of 13.13 and 143.6% above the Construction industry median of 8.15. Welspun Enterprises' overall GF Score™ is 81/100 with 9 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 Welspun Enterprises (BOM:532553), the current Return-on-Tangible-Equity is 19.84% 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 Welspun Enterprises (BOM:532553) Overvalued in 2026?
Based on GuruFocus' analysis, Welspun Enterprises stock appears to be overvalued.
The current stock price of ₹593.45 is trading 19.5% above its estimated GF Value™ of ₹496.57.
GuruFocus considers Welspun Enterprises to be Modestly Overvalued.
Key valuation signals for BOM:532553:
Return-on-Tangible-Equity: 19.84% (51% above median its 10-year median of 13.13)
GF Value™: ₹496.57 vs. price of ₹593.45 (19.5% above fair value)
Industry Position: 143.6% above the Construction median (#583 of 1710)
No single metric tells the full story. See the BOM:532553 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Welspun Enterprises Ltd is an India-based company, engaged in road transport, water, tunneling, and rehabilitation infrastructure development (Engineering, procurement and construction (EPC), Hybrid Annuity Model (HAM), and Build, Operate and Transfer (BOT) basis) and oil and gas exploration activities. It is also engaged in carrying out Operation and maintenance (O&M) activities. The company operates through the segments of Transport, Water, and Tunneling and Rehabilitation. The firm generates maximum revenue from the Transport segment.
81GF Score
Get the complete analysis for BOM:532553
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