Amba Autoles and Services (NSE:AMBAAUTO) Return-on-Tangible-Equity: 69.09% (As of Mar. 2025) — 42% Above Median

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NSE:AMBAAUTO Amba Auto Sales and Services Ltd NSE:AMBAAUTO
16 GF Score
Price ₹103.30
! 2 Warning Signs
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What is Amba Autoles and Services Return-on-Tangible-Equity?

Amba Autoles and Services NSE:AMBAAUTO +1.77% 16 Return-on-Tangible-Equity is 69.09% as of Mar. 2025, which is 42% above its 10-year median of 48.74. GuruFocus rates NSE:AMBAAUTO with a GF Score™ of 16/100. The stock has 2 warning signs investors should review. Among 1,280 Vehicles & Parts companies, Amba Autoles and Services ranks better than 95.62% 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. Amba Autoles and Services's annualized net income for the quarter that ended in Mar. 2025 was ₹78 Mil. Amba Autoles and Services's average shareholder tangible equity for the quarter that ended in Mar. 2025 was ₹113 Mil. Therefore, Amba Autoles and Services's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2025 was 69.09%.

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

NSE:AMBAAUTO' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 14.25   Med: 48.74   Max: 69.09
Current: 69.09

During the past 3 years, Amba Autoles and Services's highest Return-on-Tangible-Equity was 69.09%. The lowest was 14.25%. And the median was 48.74%.

NSE:AMBAAUTO's Return-on-Tangible-Equity is ranked better than
95.62% of 1280 companies
in the Vehicles & Parts industry
Industry Median: 7.65 vs NSE:AMBAAUTO: 69.09

Amba Autoles and Services  (NSE:AMBAAUTO) 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.


Amba Autoles and Services Return-on-Tangible-Equity Related Terms


Amba Autoles and Services Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for Amba Autoles and Services'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.

Amba Autoles and Services Return-on-Tangible-Equity Chart

Amba Autoles and Services Annual Data
Trend Mar23 Mar24 Mar25
Return-on-Tangible-Equity
14.25 48.74 69.09

Amba Autoles and Services Semi-Annual Data
Mar23 Mar24 Mar25
Return-on-Tangible-Equity 14.25 48.74 69.09

NSE:AMBAAUTO vs CVNA, PAG, KMX: Return-on-Tangible-Equity Comparison

For the Auto & Truck Dealerships subindustry, Amba Autoles and Services'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.


Amba Autoles and Services Return-on-Tangible-Equity vs Vehicles & Parts Industry

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

* The bar in red indicates where Amba Autoles and Services's Return-on-Tangible-Equity falls into.


NSE:AMBAAUTO
16GF Score
Amba Auto Sales and Services Ltd NSE:AMBAAUTO
Return-on-Tangible-Equity is just one metric. See GF Score™, valuation, warning signs, and more.
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Amba Autoles and Services Return-on-Tangible-Equity Calculation

Amba Autoles and Services's annualized Return-on-Tangible-Equity for the fiscal year that ended in Mar. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Mar. 2025 )  (A: Mar. 2024 )(A: Mar. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Mar. 2025 )  (A: Mar. 2024 )(A: Mar. 2025 )
=77.76/( (73.664+151.424 )/ 2 )
=77.76/112.544
=69.09 %

Amba Autoles and Services's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2025 )  (Q: Mar. 2024 )(Q: Mar. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2025 )  (Q: Mar. 2024 )(Q: Mar. 2025 )
=77.76/( (73.664+151.424)/ 2 )
=77.76/112.544
=69.09 %

* 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 one times the annual (Mar. 2025) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.

What does a Return-on-Tangible-Equity of 69.09% mean?
Amba Autoles and Services (NSE:AMBAAUTO) has a Return-on-Tangible-Equity of 69.09% as of Mar. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Amba Autoles and Services and its competitors. This is 42% above median its historical median of 48.74. Over the past decade, Amba Autoles and Services' Return-on-Tangible-Equity has ranged from 14.25 to 69.09. According to the industry distribution chart, Amba Autoles and Services ranks #56 out of 1280 companies in the Vehicles & Parts industry, placing it in the top 4.4%.
Is Amba Autoles and Services' Return-on-Tangible-Equity too high?
Amba Autoles and Services' current Return-on-Tangible-Equity of 69.09% is 42% above median its 10-year median of 48.74. Over the past 10 years, this metric has ranged from a low of 14.25 to a high of 69.09. The Vehicles & Parts industry median Return-on-Tangible-Equity is 7.65. Amba Autoles and Services' value of 69.09% is 803.1% above this industry median. Based on the distribution chart, Amba Autoles and Services ranks #56 out of 1280 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Amba Autoles and Services has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Amba Autoles and Services' Return-on-Tangible-Equity compare to CVNA and PAG?
According to the Vehicles & Parts industry distribution chart, Amba Autoles and Services ranks #56 out of 1280 companies for Return-on-Tangible-Equity. This places Amba Autoles and Services in the top 4% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.65. Amba Autoles and Services' value of 69.09% is 803.1% above this benchmark. Historically, Amba Autoles and Services' own Return-on-Tangible-Equity has ranged from 14.25 to 69.09 over the past decade. While the company's 10-year median is 48.74 vs. the industry median of 7.65, Amba Autoles and Services 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 7.65, based on 1,280 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. Amba Autoles and Services's current Return-on-Tangible-Equity of 69.09% is 803.1% 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 Amba Autoles and Services and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Equity is 7.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Amba Autoles and Services's current Return-on-Tangible-Equity is 69.09%, which is 42% above median its own 10-year median of 48.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Amba Autoles and Services stock overvalued right now?
Amba Autoles and Services (NSE:AMBAAUTO) has a current Return-on-Tangible-Equity of 69.09%. The current Return-on-Tangible-Equity is 69.09%, which is 42% above median its 10-year median of 48.74 and 803.1% above the Vehicles & Parts industry median of 7.65. Amba Autoles and Services' overall GF Score™ is 16/100 with 2 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 Amba Autoles and Services (NSE:AMBAAUTO), the current Return-on-Tangible-Equity is 69.09% as of Mar. 2025. 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.

Amba Autoles and Services Business Description

Address 7, Hongasandra, Survey No. 442/2A, 443/2B, Bangalore, KA, IND, 560068
Amba Auto Sales and Services Ltd operates as an authorised dealer of Bajaj Auto Limited and LG Electronics India Limited under the brand names Amba Bajaj and Amba LG Best Shop, respectively. It is engaged in the retail sale of automobiles and consumer electronics, along with related services such as after-sales service, repairs, spare parts sales, and facilitation of financial and insurance products. Additionally, in consumer electronics, its product offerings include air conditioners, televisions, washing machines, refrigerators and small appliances. The majority of the company's revenue is derived from the sale of vehicles, mainly three-wheelers.
16GF Score

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

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