Arabian Petroleum (NSE:ARABIAN) Return-on-Tangible-Equity: 15.87% (As of Mar. 2026) — 27% Below Median

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NSE:ARABIAN Arabian Petroleum Ltd NSE:ARABIAN
66 GF Score
Price ₹85.50
GF Value ₹121.48
Valuation Possible Value Trap
! 2 Warning Signs
View Full Analysis

What is Arabian Petroleum Return-on-Tangible-Equity?

Arabian Petroleum NSE:ARABIAN +4.27% 66 Return-on-Tangible-Equity is 15.87% as of Mar. 2026, which is 27% below its 10-year median of 21.66. GuruFocus rates NSE:ARABIAN with a GF Score™ of 66/100 and a GF Value™ of ₹121.48 (Possible Value Trap). The stock has 2 warning signs investors should review. Among 952 Oil & Gas companies, Arabian Petroleum ranks better than 70.9% 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. Arabian Petroleum's annualized net income for the quarter that ended in Mar. 2026 was ₹105 Mil. Arabian Petroleum's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹0 Mil. Therefore, Arabian Petroleum's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was N/A%.

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

NSE:ARABIAN' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 16.96   Med: 21.66   Max: 32.23
Current: 17.63

During the past 7 years, Arabian Petroleum's highest Return-on-Tangible-Equity was 32.23%. The lowest was 16.96%. And the median was 21.66%.

NSE:ARABIAN's Return-on-Tangible-Equity is ranked better than
70.9% of 952 companies
in the Oil & Gas industry
Industry Median: 8.275 vs NSE:ARABIAN: 17.63

Arabian Petroleum  (NSE:ARABIAN) 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.


Arabian Petroleum Return-on-Tangible-Equity Related Terms


Arabian Petroleum Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for Arabian Petroleum'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.

Arabian Petroleum Return-on-Tangible-Equity Chart

Arabian Petroleum Annual Data
Trend Mar19 Mar20 Mar21 Mar23 Mar24 Mar25 Mar26
Return-on-Tangible-Equity
Get a 7-Day Free Trial 24.87 26.99 19.18 16.96 17.69

Arabian Petroleum Semi-Annual Data
Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
Return-on-Tangible-Equity Get a 7-Day Free Trial 17.95 18.06 15.92 19.48 15.87

NSE:ARABIAN vs MPC, VLO, PSX: Return-on-Tangible-Equity Comparison

For the Oil & Gas Refining & Marketing subindustry, Arabian Petroleum'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.


Arabian Petroleum Return-on-Tangible-Equity vs Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Arabian Petroleum's Return-on-Tangible-Equity distribution charts can be found below:

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


NSE:ARABIAN
66GF Score
Arabian Petroleum Ltd NSE:ARABIAN
Return-on-Tangible-Equity is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Arabian Petroleum Return-on-Tangible-Equity Calculation

Arabian Petroleum's annualized Return-on-Tangible-Equity for the fiscal year that ended in Mar. 2026 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Mar. 2026 )  (A: Mar. 2025 )(A: Mar. 2026 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Mar. 2026 )  (A: Mar. 2025 )(A: Mar. 2026 )
=112.235/( (+ )/ 1 )
=112.235/0
=N/A %

Arabian Petroleum'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: Sep. 2025 )(Q: Mar. 2026 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2026 )  (Q: Sep. 2025 )(Q: Mar. 2026 )
=105.452/( (+)/ 1 )
=105.452/0
=N/A %

* 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 two times the semi-annual (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 15.87% mean?
Arabian Petroleum (NSE:ARABIAN) has a Return-on-Tangible-Equity of 15.87% 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 Arabian Petroleum and its competitors. This is 27% below median its historical median of 21.66. Over the past decade, Arabian Petroleum's Return-on-Tangible-Equity has ranged from 16.96 to 32.23. According to the industry distribution chart, Arabian Petroleum ranks #277 out of 952 companies in the Oil & Gas industry, placing it in the top 29.1%.
Is Arabian Petroleum's Return-on-Tangible-Equity too high?
Arabian Petroleum's current Return-on-Tangible-Equity of 15.87% is 27% below median its 10-year median of 21.66. Over the past 10 years, this metric has ranged from a low of 16.96 to a high of 32.23. The Oil & Gas industry median Return-on-Tangible-Equity is 8.28. Arabian Petroleum's value of 15.87% is 91.8% above this industry median. Based on the distribution chart, Arabian Petroleum ranks #277 out of 952 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, Arabian Petroleum has a GF Score™ of 66/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Arabian Petroleum's Return-on-Tangible-Equity compare to MPC and VLO?
According to the Oil & Gas industry distribution chart, Arabian Petroleum ranks #277 out of 952 companies for Return-on-Tangible-Equity. This puts Arabian Petroleum in the upper half of its industry. The industry median Return-on-Tangible-Equity is 8.28. Arabian Petroleum's value of 15.87% is 91.8% above this benchmark. Historically, Arabian Petroleum's own Return-on-Tangible-Equity has ranged from 16.96 to 32.23 over the past decade. While the company's 10-year median is 21.66 vs. the industry median of 8.28, Arabian Petroleum 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 Oil & Gas company?
The median Return-on-Tangible-Equity among Oil & Gas companies is 8.28, based on 952 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. Arabian Petroleum's current Return-on-Tangible-Equity of 15.87% is 91.8% 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 Arabian Petroleum and its competitors. For the Oil & Gas industry, the median Return-on-Tangible-Equity is 8.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arabian Petroleum's current Return-on-Tangible-Equity is 15.87%, which is 27% below median its own 10-year median of 21.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arabian Petroleum stock overvalued right now?
Based on GuruFocus' analysis, Arabian Petroleum (NSE:ARABIAN) is currently considered Possible Value Trap. The stock's GF Value™ is ₹121.48, compared to a current price of ₹85.50 — trading 29.6% below its estimated fair value. The current Return-on-Tangible-Equity is 15.87%, which is 27% below median its 10-year median of 21.66 and 91.8% above the Oil & Gas industry median of 8.28. Arabian Petroleum's overall GF Score™ is 66/100 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 Arabian Petroleum (NSE:ARABIAN), the current Return-on-Tangible-Equity is 15.87% 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 Arabian Petroleum (NSE:ARABIAN) Overvalued in 2026?

Based on GuruFocus' analysis, Arabian Petroleum stock appears to be undervalued. The current stock price of ₹85.50 is trading 29.6% below its estimated GF Value™ of ₹121.48. GuruFocus considers Arabian Petroleum to be Possible Value Trap.

Key valuation signals for NSE:ARABIAN:

  • Return-on-Tangible-Equity: 15.87% (27% below median its 10-year median of 21.66)
  • GF Value™: ₹121.48 vs. price of ₹85.50 (29.6% below fair value)
  • GF Score™: 66/100 with 2 warning signs
  • Industry Position: 91.8% above the Oil & Gas median (#277 of 952)

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


Arabian Petroleum Business Description

Industry EnergyOil & Gas
Address Avior Corporate Park, Office No. 629/ 630, LBS Marg, Nirmal Galaxy, Mulund West, Mumbai, MH, IND, 400080
Arabian Petroleum Ltd is a company engaged in the business of manufacturing a wide range of Lubricants, including Specialty Oils, Coolants etc , used for Industrial and Automotive applications. The business is categorized into two distinctive product divisions, which include Automotive Lubricants - Arzol and Industrial Lubricants-SPL. Geographically, the company generates the majority of its revenue from India.
66GF Score

Get the complete analysis for NSE:ARABIAN

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

₹85.50
Price
₹121.48
GF Value