Nishat PowerKAR:NPL -0.46%59 Return-on-Tangible-Equity is 9.44% as of Mar. 2026, which is 51% below its 10-year median of 19.23. GuruFocus rates KAR:NPL with a GF Score™ of 59/100 and a GF Value™ of ₨13.05 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 425 Utilities - Independent Power Producers companies, Nishat Power ranks better than 68% 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. Nishat Power's annualized net income for the quarter that ended in Mar. 2026 was ₨2,764 Mil. Nishat Power's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₨29,289 Mil. Therefore, Nishat Power's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 9.44%.
The historical rank and industry rank for Nishat Power's Return-on-Tangible-Equity or its related term are showing as below:
KAR:NPL'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -2.46 Med: 19.23 Max: 23.9
Current: 10.62
During the past 13 years, Nishat Power's highest Return-on-Tangible-Equity was 23.90%. The lowest was -2.46%. And the median was 19.23%.
KAR:NPL's Return-on-Tangible-Equity is ranked better than 68% of 425
companies
in the Utilities - Independent Power Producers industry
Industry Median: 4.71
vs KAR:NPL: 10.62
Nishat Power (KAR:NPL) 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.
Nishat Power Return-on-Tangible-Equity Related Terms
Nishat Power Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Nishat Power'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.
KAR:NPL vs CEG, VST, NRG: Return-on-Tangible-Equity Comparison
For the Utilities - Independent Power Producers subindustry, Nishat Power'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.
Nishat Power Return-on-Tangible-Equity vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Nishat Power's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Nishat Power'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 9.44% mean?
Nishat Power (KAR:NPL) has a Return-on-Tangible-Equity of 9.44% 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 Nishat Power and its competitors. This is 51% below median its historical median of 19.23. According to the industry distribution chart, Nishat Power ranks #136 out of 425 companies in the Utilities - Independent Power Producers industry, placing it in the top 32%.
Is Nishat Power's Return-on-Tangible-Equity too high?
Nishat Power's current Return-on-Tangible-Equity of 9.44% is 51% below median its 10-year median of 19.23. The Utilities - Independent Power Producers industry median Return-on-Tangible-Equity is 4.71. Nishat Power's value of 9.44% is 100.4% above this industry median. Based on the distribution chart, Nishat Power ranks #136 out of 425 companies in the Utilities - Independent Power Producers industry, which is above the industry midpoint. Overall, Nishat Power has a GF Score™ of 59/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nishat Power's Return-on-Tangible-Equity compare to CEG and VST?
According to the Utilities - Independent Power Producers industry distribution chart, Nishat Power ranks #136 out of 425 companies for Return-on-Tangible-Equity. This puts Nishat Power in the upper half of its industry. The industry median Return-on-Tangible-Equity is 4.71. Nishat Power's value of 9.44% is 100.4% above this benchmark. While the company's 10-year median is 19.23 vs. the industry median of 4.71, Nishat Power 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 an Utilities - Independent Power Producers company?
The median Return-on-Tangible-Equity among Utilities - Independent Power Producers companies is 4.71, based on 425 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. Nishat Power's current Return-on-Tangible-Equity of 9.44% is 100.4% 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 Nishat Power and its competitors. For the Utilities - Independent Power Producers industry, the median Return-on-Tangible-Equity is 4.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nishat Power's current Return-on-Tangible-Equity is 9.44%, which is 51% below median its own 10-year median of 19.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nishat Power stock overvalued right now?
Based on GuruFocus' analysis, Nishat Power (KAR:NPL) is currently considered Significantly Overvalued. The stock's GF Value™ is ₨13.05, compared to a current price of ₨73.38 — trading 462.3% above its estimated fair value. The current Return-on-Tangible-Equity is 9.44%, which is 51% below median its 10-year median of 19.23 and 100.4% above the Utilities - Independent Power Producers industry median of 4.71. Nishat Power's overall GF Score™ is 59/100 with 7 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 Nishat Power (KAR:NPL), the current Return-on-Tangible-Equity is 9.44% 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 Nishat Power (KAR:NPL) Overvalued in 2026?
Based on GuruFocus' analysis, Nishat Power stock appears to be overvalued.
The current stock price of ₨73.38 is trading 462.3% above its estimated GF Value™ of ₨13.05.
GuruFocus considers Nishat Power to be Significantly Overvalued.
Key valuation signals for KAR:NPL:
Return-on-Tangible-Equity: 9.44% (51% below median its 10-year median of 19.23)
GF Value™: ₨13.05 vs. price of ₨73.38 (462.3% above fair value)
Industry Position: 100.4% above the Utilities - Independent Power Producers median (#136 of 425)
No single metric tells the full story. See the KAR:NPL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nishat Power Ltd is a company whose principal activity is to build, own, operate and maintain a fuel-fired power plant based on Reciprocating Engine Technology having a gross capacity of 200MW in Jamber Kalan, Tehsil Pattoki, District Kasur, Punjab, Pakistan. It operates in single operating segment being: Revenue from sale of electricity relates to CPPA-G.
59GF Score
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