Ghandhara Automobiles (KAR:GAL) Return-on-Tangible-Equity: 42.67% (As of Mar. 2026) — 1822% Above Median


KAR:GAL Ghandhara Automobiles Ltd KAR:GAL
84 GF Score
Price ₨607.97
GF Value ₨641.64
Valuation Fairly Valued
! 3 Warning Signs
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What is Ghandhara Automobiles Return-on-Tangible-Equity?

Ghandhara Automobiles KAR:GAL +2.10% 84 Return-on-Tangible-Equity is 42.67% as of Mar. 2026, which is 1822% above its 10-year median of 2.22. GuruFocus rates KAR:GAL with a GF Score™ of 84/100 and a GF Value™ of ₨641.64 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,283 Vehicles & Parts companies, Ghandhara Automobiles ranks better than 93.45% 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. Ghandhara Automobiles's annualized net income for the quarter that ended in Mar. 2026 was ₨7,760 Mil. Ghandhara Automobiles's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₨18,186 Mil. Therefore, Ghandhara Automobiles's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 42.67%.

The historical rank and industry rank for Ghandhara Automobiles's Return-on-Tangible-Equity or its related term are showing as below:

KAR:GAL' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -6.52   Med: 2.22   Max: 41.34
Current: 41.34

During the past 7 years, Ghandhara Automobiles's highest Return-on-Tangible-Equity was 41.34%. The lowest was -6.52%. And the median was 2.22%.

KAR:GAL's Return-on-Tangible-Equity is ranked better than
93.45% of 1283 companies
in the Vehicles & Parts industry
Industry Median: 7.47 vs KAR:GAL: 41.34

Ghandhara Automobiles  (KAR:GAL) 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.


Ghandhara Automobiles Return-on-Tangible-Equity Related Terms


Ghandhara Automobiles Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for Ghandhara Automobiles'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.

Ghandhara Automobiles Return-on-Tangible-Equity Chart

Ghandhara Automobiles Annual Data
Trend Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Return-on-Tangible-Equity
Get a 7-Day Free Trial 1.75 3.69 2.22 3.90 31.93

Ghandhara Automobiles Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Return-on-Tangible-Equity Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 38.67 52.19 42.59 29.61 42.67

KAR:GAL vs TSLA, GM, F: Return-on-Tangible-Equity Comparison

For the Auto Manufacturers subindustry, Ghandhara Automobiles'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.


Ghandhara Automobiles Return-on-Tangible-Equity vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Ghandhara Automobiles's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Ghandhara Automobiles's Return-on-Tangible-Equity falls into.


KAR:GAL
84GF Score
Ghandhara Automobiles Ltd KAR:GAL
Return-on-Tangible-Equity is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Ghandhara Automobiles Return-on-Tangible-Equity Calculation

Ghandhara Automobiles's annualized Return-on-Tangible-Equity for the fiscal year that ended in Jun. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Jun. 2025 )  (A: Jun. 2024 )(A: Jun. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Jun. 2025 )  (A: Jun. 2024 )(A: Jun. 2025 )
=4095.59/( (10785.913+14869.582 )/ 2 )
=4095.59/12827.7475
=31.93 %

Ghandhara Automobiles's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=7759.932/( (17215.561+19155.951)/ 2 )
=7759.932/18185.756
=42.67 %

* 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 42.67% mean?
Ghandhara Automobiles (KAR:GAL) has a Return-on-Tangible-Equity of 42.67% 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 Ghandhara Automobiles and its competitors. This is 1822% above median its historical median of 2.22. According to the industry distribution chart, Ghandhara Automobiles ranks #84 out of 1283 companies in the Vehicles & Parts industry, placing it in the top 6.5%.
Is Ghandhara Automobiles' Return-on-Tangible-Equity too high?
Ghandhara Automobiles' current Return-on-Tangible-Equity of 42.67% is 1822% above median its 10-year median of 2.22. The Vehicles & Parts industry median Return-on-Tangible-Equity is 7.47. Ghandhara Automobiles' value of 42.67% is 471.2% above this industry median. Based on the distribution chart, Ghandhara Automobiles ranks #84 out of 1283 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Ghandhara Automobiles has a GF Score™ of 84/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Ghandhara Automobiles' Return-on-Tangible-Equity compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Ghandhara Automobiles ranks #84 out of 1283 companies for Return-on-Tangible-Equity. This places Ghandhara Automobiles in the top 7% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.47. Ghandhara Automobiles' value of 42.67% is 471.2% above this benchmark. While the company's 10-year median is 2.22 vs. the industry median of 7.47, Ghandhara Automobiles 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 Vehicles & Parts company?
The median Return-on-Tangible-Equity among Vehicles & Parts companies is 7.47, based on 1,283 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. Ghandhara Automobiles's current Return-on-Tangible-Equity of 42.67% is 471.2% 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 Ghandhara Automobiles and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Equity is 7.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ghandhara Automobiles's current Return-on-Tangible-Equity is 42.67%, which is 1822% above median its own 10-year median of 2.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ghandhara Automobiles stock overvalued right now?
Based on GuruFocus' analysis, Ghandhara Automobiles (KAR:GAL) is currently considered Fairly Valued. The stock's GF Value™ is ₨641.64, compared to a current price of ₨607.97 — trading 5.2% below its estimated fair value. The current Return-on-Tangible-Equity is 42.67%, which is 1822% above median its 10-year median of 2.22 and 471.2% above the Vehicles & Parts industry median of 7.47. Ghandhara Automobiles' overall GF Score™ is 84/100 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 Ghandhara Automobiles (KAR:GAL), the current Return-on-Tangible-Equity is 42.67% 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 Ghandhara Automobiles (KAR:GAL) Overvalued in 2026?

Based on GuruFocus' analysis, Ghandhara Automobiles stock appears to be undervalued. The current stock price of ₨607.97 is trading 5.2% below its estimated GF Value™ of ₨641.64. GuruFocus considers Ghandhara Automobiles to be Fairly Valued.

Key valuation signals for KAR:GAL:

  • Return-on-Tangible-Equity: 42.67% (1822% above median its 10-year median of 2.22)
  • GF Value™: ₨641.64 vs. price of ₨607.97 (5.2% below fair value)
  • GF Score™: 84/100 with 3 warning signs
  • Industry Position: 471.2% above the Vehicles & Parts median (#84 of 1283)

No single metric tells the full story. See the KAR:GAL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Ghandhara Automobiles Business Description

Address F-3, Hub Chowki Road, S.I.T.E., Karachi, SD, PAK, 75730
Ghandhara Automobiles Ltd is a company whose principal business is the assembly or progressive manufacturing of vehicles, including JAC Trucks & Pickup, import and sale of Dongfeng and Renault vehicles in Completely Built-up condition, sale of spare parts, and assembly of various other vehicles under contractual arrangements.
84GF Score

Get the complete analysis for KAR:GAL

Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₨607.97
Price
₨641.64
GF Value