Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Shankara Building ProductsBOM:540425 +0.11%44 Return-on-Tangible-Equity is 6.79% as of Mar. 2026, which is 14% below its 10-year median of 7.88. GuruFocus rates BOM:540425 with a GF Score™ of 44/100 and a GF Value™ of ₹49.59 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,065 Retail - Cyclical companies, Shankara Building Products ranks better than 50.61% 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. Shankara Building Products's annualized net income for the quarter that ended in Mar. 2026 was ₹294 Mil. Shankara Building Products's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹4,333 Mil. Therefore, Shankara Building Products's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 6.79%.
The historical rank and industry rank for Shankara Building Products's Return-on-Tangible-Equity or its related term are showing as below:
BOM:540425'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -0.13 Med: 7.88 Max: 18.29
Current: 8.56
During the past 13 years, Shankara Building Products's highest Return-on-Tangible-Equity was 18.29%. The lowest was -0.13%. And the median was 7.88%.
BOM:540425's Return-on-Tangible-Equity is ranked better than 50.61% of 1065
companies
in the Retail - Cyclical industry
Industry Median: 8.33
vs BOM:540425: 8.56
Shankara Building Products (BOM:540425) 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.
Shankara Building Products Return-on-Tangible-Equity Related Terms
Shankara Building Products Return-on-Tangible-Equity Historical Data
* 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.
Shankara Building Products Return-on-Tangible-Equity Chart
BOM:540425 vs HD, LOW, FND: Return-on-Tangible-Equity Comparison
For the Home Improvement Retail subindustry, Shankara Building Products'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.
Shankara Building Products Return-on-Tangible-Equity vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Shankara Building Products's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Shankara Building Products'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 6.79% mean?
Shankara Building Products (BOM:540425) has a Return-on-Tangible-Equity of 6.79% 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 Shankara Building Products and its competitors. This is 14% below median its historical median of 7.88. According to the industry distribution chart, Shankara Building Products ranks #526 out of 1065 companies in the Retail - Cyclical industry, placing it in the top 49.4%.
Is Shankara Building Products' Return-on-Tangible-Equity too high?
Shankara Building Products' current Return-on-Tangible-Equity of 6.79% is 14% below median its 10-year median of 7.88. The Retail - Cyclical industry median Return-on-Tangible-Equity is 8.33. Shankara Building Products' value of 6.79% is 18.5% below this industry median. Based on the distribution chart, Shankara Building Products ranks #526 out of 1065 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Shankara Building Products has a GF Score™ of 44/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shankara Building Products' Return-on-Tangible-Equity compare to HD and LOW?
According to the Retail - Cyclical industry distribution chart, Shankara Building Products ranks #526 out of 1065 companies for Return-on-Tangible-Equity. This puts Shankara Building Products in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.33. Shankara Building Products' value of 6.79% is 18.5% below this benchmark. While the company's 10-year median is 7.88 vs. the industry median of 8.33, Shankara Building Products 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 Retail - Cyclical company?
The median Return-on-Tangible-Equity among Retail - Cyclical companies is 8.33, based on 1,065 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. Shankara Building Products's current Return-on-Tangible-Equity of 6.79% is 18.5% 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 Shankara Building Products and its competitors. For the Retail - Cyclical industry, the median Return-on-Tangible-Equity is 8.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shankara Building Products's current Return-on-Tangible-Equity is 6.79%, which is 14% below median its own 10-year median of 7.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shankara Building Products stock overvalued right now?
Based on GuruFocus' analysis, Shankara Building Products (BOM:540425) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹49.59, compared to a current price of ₹142.00 — trading 186.3% above its estimated fair value. The current Return-on-Tangible-Equity is 6.79%, which is 14% below median its 10-year median of 7.88 and 18.5% below the Retail - Cyclical industry median of 8.33. Shankara Building Products' overall GF Score™ is 44/100 with 6 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 Shankara Building Products (BOM:540425), the current Return-on-Tangible-Equity is 6.79% 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 Shankara Building Products (BOM:540425) Overvalued in 2026?
Based on GuruFocus' analysis, Shankara Building Products stock appears to be overvalued.
The current stock price of ₹142.00 is trading 186.3% above its estimated GF Value™ of ₹49.59.
GuruFocus considers Shankara Building Products to be Significantly Overvalued.
Key valuation signals for BOM:540425:
Return-on-Tangible-Equity: 6.79% (14% below median its 10-year median of 7.88)
GF Value™: ₹49.59 vs. price of ₹142.00 (186.3% above fair value)
Industry Position: 18.5% below the Retail - Cyclical median (#526 of 1065)
No single metric tells the full story. See the BOM:540425 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shankara Building Products Ltd is an organised retailer of home improvement and building products in India. The company's operating segments include Retail, Channel and Enterprise. It generates maximum revenue from the Retail segment. The Retail segment offers construction materials, plumbing and sanitaryware, flooring, electrical items, and interior-exterior finishing. Its In-house brands include Taurus; Loha; Prince; Century Roof; Ganga and Ganga Gold and Prince Scaffolding.
44GF Score
Get the complete analysis for BOM:540425
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
BOM:540425 has been successfully added to your 
