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Smart FinsecBOM:539494 +0.64%71 Return-on-Tangible-Equity is 4.05% as of Mar. 2026, which is 61% below its 10-year median of 10.31. GuruFocus rates BOM:539494 with a GF Score™ of 71/100 and a GF Value™ of ₹6.71 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 780 Capital Markets companies, Smart Finsec ranks worse than 52.31% 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. Smart Finsec's annualized net income for the quarter that ended in Mar. 2026 was ₹6.76 Mil. Smart Finsec's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹166.71 Mil. Therefore, Smart Finsec's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 4.05%.
The historical rank and industry rank for Smart Finsec's Return-on-Tangible-Equity or its related term are showing as below:
BOM:539494'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 5.13 Med: 10.31 Max: 38.49
Current: 6.04
During the past 12 years, Smart Finsec's highest Return-on-Tangible-Equity was 38.49%. The lowest was 5.13%. And the median was 10.31%.
BOM:539494's Return-on-Tangible-Equity is ranked worse than 52.31% of 780
companies
in the Capital Markets industry
Industry Median: 6.52
vs BOM:539494: 6.04
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.
Smart Finsec Return-on-Tangible-Equity Related Terms
Smart Finsec Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Smart Finsec'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:539494 vs MS, GS, SCHW: Return-on-Tangible-Equity Comparison
For the Capital Markets subindustry, Smart Finsec'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.
Smart Finsec Return-on-Tangible-Equity vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Smart Finsec's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Smart Finsec'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 4.05% mean?
Smart Finsec (BOM:539494) has a Return-on-Tangible-Equity of 4.05% 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 Smart Finsec and its competitors. This is 61% below median its historical median of 10.31. Over the past decade, Smart Finsec's Return-on-Tangible-Equity has ranged from 5.13 to 38.49. According to the industry distribution chart, Smart Finsec ranks #408 out of 780 companies in the Capital Markets industry, placing it in the top 52.3%.
Is Smart Finsec's Return-on-Tangible-Equity too high?
Smart Finsec's current Return-on-Tangible-Equity of 4.05% is 61% below median its 10-year median of 10.31. Over the past 10 years, this metric has ranged from a low of 5.13 to a high of 38.49. The Capital Markets industry median Return-on-Tangible-Equity is 6.52. Smart Finsec's value of 4.05% is 37.9% below this industry median. Based on the distribution chart, Smart Finsec ranks #408 out of 780 companies in the Capital Markets industry, which is below the industry midpoint. Overall, Smart Finsec has a GF Score™ of 71/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Smart Finsec's Return-on-Tangible-Equity compare to MS and GS?
According to the Capital Markets industry distribution chart, Smart Finsec ranks #408 out of 780 companies for Return-on-Tangible-Equity. This places Smart Finsec in the lower half of its industry. The industry median Return-on-Tangible-Equity is 6.52. Smart Finsec's value of 4.05% is 37.9% below this benchmark. Historically, Smart Finsec's own Return-on-Tangible-Equity has ranged from 5.13 to 38.49 over the past decade. While the company's 10-year median is 10.31 vs. the industry median of 6.52, Smart Finsec 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 Capital Markets company?
The median Return-on-Tangible-Equity among Capital Markets companies is 6.52, based on 780 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. Smart Finsec's current Return-on-Tangible-Equity of 4.05% is 37.9% 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 Smart Finsec 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. Smart Finsec's current Return-on-Tangible-Equity is 4.05%, which is 61% below median its own 10-year median of 10.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Smart Finsec stock overvalued right now?
Based on GuruFocus' analysis, Smart Finsec (BOM:539494) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹6.71, compared to a current price of ₹7.85 — trading 17% above its estimated fair value. The current Return-on-Tangible-Equity is 4.05%, which is 61% below median its 10-year median of 10.31 and 37.9% below the Capital Markets industry median of 6.52. Smart Finsec's overall GF Score™ is 71/100 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 Smart Finsec (BOM:539494), the current Return-on-Tangible-Equity is 4.05% 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 Smart Finsec (BOM:539494) Overvalued in 2026?
Based on GuruFocus' analysis, Smart Finsec stock appears to be overvalued.
The current stock price of ₹7.85 is trading 17% above its estimated GF Value™ of ₹6.71.
GuruFocus considers Smart Finsec to be Modestly Overvalued.
Key valuation signals for BOM:539494:
Return-on-Tangible-Equity: 4.05% (61% below median its 10-year median of 10.31)
GF Value™: ₹6.71 vs. price of ₹7.85 (17% above fair value)
Industry Position: 37.9% below the Capital Markets median (#408 of 780)
No single metric tells the full story. See the BOM:539494 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Smart Finsec Ltd is mainly engaged in the business of lending small loans and investments in stocks, securities and bonds. The Company is a non-deposit taking Non-Banking Finance Company (NBFC) and registered with Reserve Bank of India.
71GF Score
Get the complete analysis for BOM:539494
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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