Aditya Birla CapitalNSE:ABCAPITAL +2.11%75 Return-on-Tangible-Equity is 13.56% as of Mar. 2026, which is 20% above its 10-year median of 11.29. GuruFocus rates NSE:ABCAPITAL with a GF Score™ of 75/100 and a GF Value™ of ₹251.99 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 488 Diversified Financial Services companies, Aditya Birla Capital ranks better than 89.96% 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. Aditya Birla Capital's annualized net income for the quarter that ended in Mar. 2026 was ₹45,166 Mil. Aditya Birla Capital's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹333,021 Mil. Therefore, Aditya Birla Capital's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 13.56%.
The historical rank and industry rank for Aditya Birla Capital's Return-on-Tangible-Equity or its related term are showing as below:
NSE:ABCAPITAL'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 8.97 Med: 11.29 Max: 28.06
Current: 12.04
During the past 12 years, Aditya Birla Capital's highest Return-on-Tangible-Equity was 28.06%. The lowest was 8.97%. And the median was 11.29%.
NSE:ABCAPITAL's Return-on-Tangible-Equity is ranked better than 89.96% of 488
companies
in the Diversified Financial Services industry
Industry Median: 1.65
vs NSE:ABCAPITAL: 12.04
Aditya Birla Capital (NSE:ABCAPITAL) 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.
Aditya Birla Capital Return-on-Tangible-Equity Related Terms
Aditya Birla Capital Return-on-Tangible-Equity Historical Data
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The historical data trend for Aditya Birla Capital'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.
Aditya Birla Capital Return-on-Tangible-Equity Chart
NSE:ABCAPITAL vs VOYA, FRHC: Return-on-Tangible-Equity Comparison
For the Financial Conglomerates subindustry, Aditya Birla Capital'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.
Aditya Birla Capital Return-on-Tangible-Equity vs Diversified Financial Services Industry
For the Diversified Financial Services industry and Financial Services sector, Aditya Birla Capital's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Aditya Birla Capital'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 13.56% mean?
Aditya Birla Capital (NSE:ABCAPITAL) has a Return-on-Tangible-Equity of 13.56% 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 Aditya Birla Capital and its competitors. This is 20% above median its historical median of 11.29. Over the past decade, Aditya Birla Capital's Return-on-Tangible-Equity has ranged from 8.97 to 28.06. According to the industry distribution chart, Aditya Birla Capital ranks #49 out of 488 companies in the Diversified Financial Services industry, placing it in the top 10%.
Is Aditya Birla Capital's Return-on-Tangible-Equity too high?
Aditya Birla Capital's current Return-on-Tangible-Equity of 13.56% is 20% above median its 10-year median of 11.29. Over the past 10 years, this metric has ranged from a low of 8.97 to a high of 28.06. The Diversified Financial Services industry median Return-on-Tangible-Equity is 1.65. Aditya Birla Capital's value of 13.56% is 721.8% above this industry median. Based on the distribution chart, Aditya Birla Capital ranks #49 out of 488 companies in the Diversified Financial Services industry, which is in the top quartile — a strong position relative to peers. Overall, Aditya Birla Capital has a GF Score™ of 75/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Aditya Birla Capital's Return-on-Tangible-Equity compare to VOYA and FRHC?
According to the Diversified Financial Services industry distribution chart, Aditya Birla Capital ranks #49 out of 488 companies for Return-on-Tangible-Equity. This places Aditya Birla Capital in the top 10% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 1.65. Aditya Birla Capital's value of 13.56% is 721.8% above this benchmark. Historically, Aditya Birla Capital's own Return-on-Tangible-Equity has ranged from 8.97 to 28.06 over the past decade. While the company's 10-year median is 11.29 vs. the industry median of 1.65, Aditya Birla Capital 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 Diversified Financial Services company?
The median Return-on-Tangible-Equity among Diversified Financial Services companies is 1.65, based on 488 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. Aditya Birla Capital's current Return-on-Tangible-Equity of 13.56% is 721.8% 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 Aditya Birla Capital and its competitors. For the Diversified Financial Services industry, the median Return-on-Tangible-Equity is 1.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aditya Birla Capital's current Return-on-Tangible-Equity is 13.56%, which is 20% above median its own 10-year median of 11.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aditya Birla Capital stock overvalued right now?
Based on GuruFocus' analysis, Aditya Birla Capital (NSE:ABCAPITAL) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹251.99, compared to a current price of ₹401.25 — trading 59.2% above its estimated fair value. The current Return-on-Tangible-Equity is 13.56%, which is 20% above median its 10-year median of 11.29 and 721.8% above the Diversified Financial Services industry median of 1.65. Aditya Birla Capital's overall GF Score™ is 75/100 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 Aditya Birla Capital (NSE:ABCAPITAL), the current Return-on-Tangible-Equity is 13.56% 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 Aditya Birla Capital (NSE:ABCAPITAL) Overvalued in 2026?
Based on GuruFocus' analysis, Aditya Birla Capital stock appears to be overvalued.
The current stock price of ₹401.25 is trading 59.2% above its estimated GF Value™ of ₹251.99.
GuruFocus considers Aditya Birla Capital to be Significantly Overvalued.
Key valuation signals for NSE:ABCAPITAL:
Return-on-Tangible-Equity: 13.56% (20% above median its 10-year median of 11.29)
GF Value™: ₹251.99 vs. price of ₹401.25 (59.2% above fair value)
Industry Position: 721.8% above the Diversified Financial Services median (#49 of 488)
No single metric tells the full story. See the NSE:ABCAPITAL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aditya Birla Capital Ltd is a financial service provider. The company's products include Non-Bank Financial Services, Housing Finance, Life Insurance, Asset Management, General Insurance Broking, Stock and Securities Broking, Health Insurance and Other Financial Services. Its operating segments consist of Lending, and Investing and Others. The Lending segment consists of Loans (personal, business, etc.), loan against property, structured finance, working capital loans, wealth management, distribution of financial products, etc. The Investing and Others segment includes investments in Group companies Geographically, it derives a majority of its revenue from India.
75GF Score
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