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Bharat ElectronicsNSE:BEL +0.58%99 Return-on-Tangible-Equity is 38.53% as of Mar. 2026, which is 69% above its 10-year median of 22.79. GuruFocus rates NSE:BEL with a GF Score™ of 99/100 and a GF Value™ of ₹398.13 (Fairly Valued). Among 335 Aerospace & Defense companies, Bharat Electronics ranks better than 78.51% 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. Bharat Electronics's annualized net income for the quarter that ended in Mar. 2026 was ₹89,009 Mil. Bharat Electronics's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹231,036 Mil. Therefore, Bharat Electronics's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 38.53%.
The historical rank and industry rank for Bharat Electronics's Return-on-Tangible-Equity or its related term are showing as below:
NSE:BEL'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 18.91 Med: 22.79 Max: 30.56
Current: 28.87
During the past 13 years, Bharat Electronics's highest Return-on-Tangible-Equity was 30.56%. The lowest was 18.91%. And the median was 22.79%.
NSE:BEL's Return-on-Tangible-Equity is ranked better than 78.51% of 335
companies
in the Aerospace & Defense industry
Industry Median: 8.1
vs NSE:BEL: 28.87
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.
Bharat Electronics Return-on-Tangible-Equity Related Terms
Bharat Electronics Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Bharat Electronics'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.
NSE:BEL vs SPCX, GE, RTX: Return-on-Tangible-Equity Comparison
For the Aerospace & Defense subindustry, Bharat Electronics'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.
Bharat Electronics Return-on-Tangible-Equity vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Bharat Electronics's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Bharat Electronics'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 38.53% mean?
Bharat Electronics (NSE:BEL) has a Return-on-Tangible-Equity of 38.53% 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 Bharat Electronics and its competitors. This is 69% above median its historical median of 22.79. Over the past decade, Bharat Electronics' Return-on-Tangible-Equity has ranged from 18.91 to 30.56. According to the industry distribution chart, Bharat Electronics ranks #72 out of 335 companies in the Aerospace & Defense industry, placing it in the top 21.5%.
Is Bharat Electronics' Return-on-Tangible-Equity too high?
Bharat Electronics' current Return-on-Tangible-Equity of 38.53% is 69% above median its 10-year median of 22.79. Over the past 10 years, this metric has ranged from a low of 18.91 to a high of 30.56. The Aerospace & Defense industry median Return-on-Tangible-Equity is 8.10. Bharat Electronics' value of 38.53% is 375.7% above this industry median. Based on the distribution chart, Bharat Electronics ranks #72 out of 335 companies in the Aerospace & Defense industry, which is in the top quartile — a strong position relative to peers. Overall, Bharat Electronics has a GF Score™ of 99/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Bharat Electronics' Return-on-Tangible-Equity compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Bharat Electronics ranks #72 out of 335 companies for Return-on-Tangible-Equity. This places Bharat Electronics in the top 22% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.10. Bharat Electronics' value of 38.53% is 375.7% above this benchmark. Historically, Bharat Electronics' own Return-on-Tangible-Equity has ranged from 18.91 to 30.56 over the past decade. While the company's 10-year median is 22.79 vs. the industry median of 8.10, Bharat Electronics 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 Aerospace & Defense company?
The median Return-on-Tangible-Equity among Aerospace & Defense companies is 8.10, based on 335 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. Bharat Electronics's current Return-on-Tangible-Equity of 38.53% is 375.7% 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 Bharat Electronics and its competitors. For the Aerospace & Defense industry, the median Return-on-Tangible-Equity is 8.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bharat Electronics's current Return-on-Tangible-Equity is 38.53%, which is 69% above median its own 10-year median of 22.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bharat Electronics stock overvalued right now?
Based on GuruFocus' analysis, Bharat Electronics (NSE:BEL) is currently considered Fairly Valued. The stock's GF Value™ is ₹398.13, compared to a current price of ₹409.45 — trading 2.8% above its estimated fair value. The current Return-on-Tangible-Equity is 38.53%, which is 69% above median its 10-year median of 22.79 and 375.7% above the Aerospace & Defense industry median of 8.10. Bharat Electronics' overall GF Score™ is 99/100. 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 Bharat Electronics (NSE:BEL), the current Return-on-Tangible-Equity is 38.53% 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 Bharat Electronics (NSE:BEL) Overvalued in 2026?
Based on GuruFocus' analysis, Bharat Electronics stock appears to be overvalued.
The current stock price of ₹409.45 is trading 2.8% above its estimated GF Value™ of ₹398.13.
GuruFocus considers Bharat Electronics to be Fairly Valued.
Key valuation signals for NSE:BEL:
Return-on-Tangible-Equity: 38.53% (69% above median its 10-year median of 22.79)
GF Value™: ₹398.13 vs. price of ₹409.45 (2.8% above fair value)
Industry Position: 375.7% above the Aerospace & Defense median (#72 of 335)
No single metric tells the full story. See the NSE:BEL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bharat Electronics Ltd is an aerospace and defense company predominantly owned by the Indian government. It manufactures a wide range of specialized electronics and equipment for defense and civilian use. Its investments are made in research and development to meet the ever-changing needs of customers and to test products in its pipeline. Its product portfolio includes unmanned systems, land-based radars, batteries, weapon systems, fuzes, simulators, and jammers, among others. It also provides cybersecurity and software products. A majority of the company's revenue is derived from the defense sector. Geographically, the company's key revenue is derived from India, and it also has international customers from countries like the United Kingdom, Israel, and others.
99GF Score
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