Elecon Engineering CoNSE:ELECON -2.55%96 Return-on-Tangible-Equity is 1.05% as of Mar. 2026, which is 93% below its 10-year median of 14.63. GuruFocus rates NSE:ELECON with a GF Score™ of 96/100 and a GF Value™ of ₹646.39 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 2,967 Industrial Products companies, Elecon Engineering Co ranks better than 79.78% 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. Elecon Engineering Co's annualized net income for the quarter that ended in Mar. 2026 was ₹240 Mil. Elecon Engineering Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹22,787 Mil. Therefore, Elecon Engineering Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 1.05%.
The historical rank and industry rank for Elecon Engineering Co's Return-on-Tangible-Equity or its related term are showing as below:
NSE:ELECON'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 1.25 Med: 14.63 Max: 26.93
Current: 16.33
During the past 13 years, Elecon Engineering Co's highest Return-on-Tangible-Equity was 26.93%. The lowest was 1.25%. And the median was 14.63%.
NSE:ELECON's Return-on-Tangible-Equity is ranked better than 79.78% of 2967
companies
in the Industrial Products industry
Industry Median: 6.72
vs NSE:ELECON: 16.33
Elecon Engineering Co (NSE:ELECON) 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.
Elecon Engineering Co Return-on-Tangible-Equity Related Terms
Elecon Engineering Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Elecon Engineering Co'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.
Elecon Engineering Co Return-on-Tangible-Equity Chart
NSE:ELECON vs GEV, ETN, PH: Return-on-Tangible-Equity Comparison
For the Specialty Industrial Machinery subindustry, Elecon Engineering Co'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.
Elecon Engineering Co Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Elecon Engineering Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Elecon Engineering Co'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 1.05% mean?
Elecon Engineering Co (NSE:ELECON) has a Return-on-Tangible-Equity of 1.05% 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 Elecon Engineering Co and its competitors. This is 93% below median its historical median of 14.63. Over the past decade, Elecon Engineering Co's Return-on-Tangible-Equity has ranged from 1.25 to 26.93. According to the industry distribution chart, Elecon Engineering Co ranks #600 out of 2967 companies in the Industrial Products industry, placing it in the top 20.2%.
Is Elecon Engineering Co's Return-on-Tangible-Equity too high?
Elecon Engineering Co's current Return-on-Tangible-Equity of 1.05% is 93% below median its 10-year median of 14.63. Over the past 10 years, this metric has ranged from a low of 1.25 to a high of 26.93. The Industrial Products industry median Return-on-Tangible-Equity is 6.72. Elecon Engineering Co's value of 1.05% is 84.4% below this industry median. Based on the distribution chart, Elecon Engineering Co ranks #600 out of 2967 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Elecon Engineering Co has a GF Score™ of 96/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Elecon Engineering Co's Return-on-Tangible-Equity compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Elecon Engineering Co ranks #600 out of 2967 companies for Return-on-Tangible-Equity. This places Elecon Engineering Co in the top 20% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 6.72. Elecon Engineering Co's value of 1.05% is 84.4% below this benchmark. Historically, Elecon Engineering Co's own Return-on-Tangible-Equity has ranged from 1.25 to 26.93 over the past decade. While the company's 10-year median is 14.63 vs. the industry median of 6.72, Elecon Engineering Co has consistently been below 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 Industrial Products company?
The median Return-on-Tangible-Equity among Industrial Products companies is 6.72, based on 2,967 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. Elecon Engineering Co's current Return-on-Tangible-Equity of 1.05% is 84.4% below 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 Elecon Engineering Co and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Equity is 6.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Elecon Engineering Co's current Return-on-Tangible-Equity is 1.05%, which is 93% below median its own 10-year median of 14.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Elecon Engineering Co stock overvalued right now?
Based on GuruFocus' analysis, Elecon Engineering Co (NSE:ELECON) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹646.39, compared to a current price of ₹526.70 — trading 18.5% below its estimated fair value. The current Return-on-Tangible-Equity is 1.05%, which is 93% below median its 10-year median of 14.63 and 84.4% below the Industrial Products industry median of 6.72. Elecon Engineering Co's overall GF Score™ is 96/100 with 4 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 Elecon Engineering Co (NSE:ELECON), the current Return-on-Tangible-Equity is 1.05% 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 Elecon Engineering Co (NSE:ELECON) Overvalued in 2026?
Based on GuruFocus' analysis, Elecon Engineering Co stock appears to be undervalued.
The current stock price of ₹526.70 is trading 18.5% below its estimated GF Value™ of ₹646.39.
GuruFocus considers Elecon Engineering Co to be Modestly Undervalued.
Key valuation signals for NSE:ELECON:
Return-on-Tangible-Equity: 1.05% (93% below median its 10-year median of 14.63)
GF Value™: ₹646.39 vs. price of ₹526.70 (18.5% below fair value)
Industry Position: 84.4% below the Industrial Products median (#600 of 2967)
No single metric tells the full story. See the NSE:ELECON stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Elecon Engineering Co Ltd is an India-based company engaged in the manufacturing of material handling equipment and industrial gears. It operates through two segments, namely, the Material Handling Equipment segment, which engages in the manufacturing of raw material handling systems, stackers, reclaimers, bagging and weighing machines, wagon and truck loaders, crushers, wagon tipplers, feeders, and port equipment; and Transmission Equipment segment, which manufactures material transmission equipment like gearboxes, couplings, and elevator traction machines. It generates maximum revenue from transmission equipment sales. The group has a business presence in India and Outside India.
96GF Score
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