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Esab IndiaNSE:ESABINDIA -0.22%95 Return-on-Tangible-Equity is 40.70% as of Mar. 2026, which is 42% above its 10-year median of 28.68. GuruFocus rates NSE:ESABINDIA with a GF Score™ of 95/100 and a GF Value™ of ₹6,546.00 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 2,969 Industrial Products companies, Esab India ranks better than 95.08% 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. Esab India's annualized net income for the quarter that ended in Mar. 2026 was ₹1,742 Mil. Esab India's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹4,280 Mil. Therefore, Esab India's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 40.70%.
The historical rank and industry rank for Esab India's Return-on-Tangible-Equity or its related term are showing as below:
NSE:ESABINDIA'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 8.16 Med: 28.68 Max: 58.01
Current: 51.6
During the past 13 years, Esab India's highest Return-on-Tangible-Equity was 58.01%. The lowest was 8.16%. And the median was 28.68%.
NSE:ESABINDIA's Return-on-Tangible-Equity is ranked better than 95.08% of 2969
companies
in the Industrial Products industry
Industry Median: 6.72
vs NSE:ESABINDIA: 51.60
Esab India (NSE:ESABINDIA) 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.
Esab India Return-on-Tangible-Equity Related Terms
Esab India Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Esab India'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:ESABINDIA vs SNA, RBC, LECO: Return-on-Tangible-Equity Comparison
For the Tools & Accessories subindustry, Esab India'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.
Esab India Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Esab India's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Esab India'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 40.70% mean?
Esab India (NSE:ESABINDIA) has a Return-on-Tangible-Equity of 40.70% 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 Esab India and its competitors. This is 42% above median its historical median of 28.68. Over the past decade, Esab India's Return-on-Tangible-Equity has ranged from 8.16 to 58.01. According to the industry distribution chart, Esab India ranks #146 out of 2969 companies in the Industrial Products industry, placing it in the top 4.9%.
Is Esab India's Return-on-Tangible-Equity too high?
Esab India's current Return-on-Tangible-Equity of 40.70% is 42% above median its 10-year median of 28.68. Over the past 10 years, this metric has ranged from a low of 8.16 to a high of 58.01. The Industrial Products industry median Return-on-Tangible-Equity is 6.72. Esab India's value of 40.70% is 505.7% above this industry median. Based on the distribution chart, Esab India ranks #146 out of 2969 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Esab India has a GF Score™ of 95/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Esab India's Return-on-Tangible-Equity compare to SNA and RBC?
According to the Industrial Products industry distribution chart, Esab India ranks #146 out of 2969 companies for Return-on-Tangible-Equity. This places Esab India in the top 5% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 6.72. Esab India's value of 40.70% is 505.7% above this benchmark. Historically, Esab India's own Return-on-Tangible-Equity has ranged from 8.16 to 58.01 over the past decade. While the company's 10-year median is 28.68 vs. the industry median of 6.72, Esab India 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 Industrial Products company?
The median Return-on-Tangible-Equity among Industrial Products companies is 6.72, based on 2,969 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. Esab India's current Return-on-Tangible-Equity of 40.70% is 505.7% 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 Esab India 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. Esab India's current Return-on-Tangible-Equity is 40.70%, which is 42% above median its own 10-year median of 28.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Esab India stock overvalued right now?
Based on GuruFocus' analysis, Esab India (NSE:ESABINDIA) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹6,546.00, compared to a current price of ₹5,653.00 — trading 13.6% below its estimated fair value. The current Return-on-Tangible-Equity is 40.70%, which is 42% above median its 10-year median of 28.68 and 505.7% above the Industrial Products industry median of 6.72. Esab India's overall GF Score™ is 95/100 with 1 warning sign 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 Esab India (NSE:ESABINDIA), the current Return-on-Tangible-Equity is 40.70% 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 Esab India (NSE:ESABINDIA) Overvalued in 2026?
Based on GuruFocus' analysis, Esab India stock appears to be undervalued.
The current stock price of ₹5,653.00 is trading 13.6% below its estimated GF Value™ of ₹6,546.00.
GuruFocus considers Esab India to be Modestly Undervalued.
Key valuation signals for NSE:ESABINDIA:
Return-on-Tangible-Equity: 40.70% (42% above median its 10-year median of 28.68)
GF Value™: ₹6,546.00 vs. price of ₹5,653.00 (13.6% below fair value)
Industry Position: 505.7% above the Industrial Products median (#146 of 2969)
No single metric tells the full story. See the NSE:ESABINDIA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Esab India Ltd is engaged in the production of welding and cutting equipment and consumables. The company focuses on areas such as Manual welding and cutting equipment, Welding Consumables, Welding automation, Mechanized cutting systems, and others. It operates in the segment of fabrication technology. This includes manufacturing and selling of welding, cutting and allied products and also provides engineering, support, and consulting services. The company's brands include ESAB, Exaton, Gasarc, Victor, and Tweco among others. Geographically, the company derives its key revenue from the domestic market and the rest from overseas markets.
95GF Score
Get the complete analysis for NSE:ESABINDIA
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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