Grasim IndustriesNSE:GRASIM +0.68%88 Return-on-Tangible-Equity is 11.35% as of Mar. 2026, which is 5% below its 10-year median of 11.95. GuruFocus rates NSE:GRASIM with a GF Score™ of 88/100 and a GF Value™ of ₹2,957.72 (Fairly Valued). The stock has 8 warning signs investors should review. Among 397 Building Materials companies, Grasim Industries ranks better than 59.19% 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. Grasim Industries's annualized net income for the quarter that ended in Mar. 2026 was ₹78,310 Mil. Grasim Industries's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹689,731 Mil. Therefore, Grasim Industries's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 11.35%.
The historical rank and industry rank for Grasim Industries's Return-on-Tangible-Equity or its related term are showing as below:
NSE:GRASIM'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 5.64 Med: 11.95 Max: 18.22
Current: 7.53
During the past 13 years, Grasim Industries's highest Return-on-Tangible-Equity was 18.22%. The lowest was 5.64%. And the median was 11.95%.
NSE:GRASIM's Return-on-Tangible-Equity is ranked better than 59.19% of 397
companies
in the Building Materials industry
Industry Median: 5.08
vs NSE:GRASIM: 7.53
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.
Grasim Industries Return-on-Tangible-Equity Related Terms
Grasim Industries Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Grasim Industries'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:GRASIM vs CRH, VMC, MLM: Return-on-Tangible-Equity Comparison
For the Building Materials subindustry, Grasim Industries'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.
Grasim Industries Return-on-Tangible-Equity vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Grasim Industries's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Grasim Industries'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 11.35% mean?
Grasim Industries (NSE:GRASIM) has a Return-on-Tangible-Equity of 11.35% 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 Grasim Industries and its competitors. This is near median its historical median of 11.95. Over the past decade, Grasim Industries' Return-on-Tangible-Equity has ranged from 5.64 to 18.22. According to the industry distribution chart, Grasim Industries ranks #162 out of 397 companies in the Building Materials industry, placing it in the top 40.8%.
Is Grasim Industries' Return-on-Tangible-Equity too high?
Grasim Industries' current Return-on-Tangible-Equity of 11.35% is near median its 10-year median of 11.95. Over the past 10 years, this metric has ranged from a low of 5.64 to a high of 18.22. The Building Materials industry median Return-on-Tangible-Equity is 5.08. Grasim Industries' value of 11.35% is 123.4% above this industry median. Based on the distribution chart, Grasim Industries ranks #162 out of 397 companies in the Building Materials industry, which is above the industry midpoint. Overall, Grasim Industries has a GF Score™ of 88/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Grasim Industries' Return-on-Tangible-Equity compare to CRH and VMC?
According to the Building Materials industry distribution chart, Grasim Industries ranks #162 out of 397 companies for Return-on-Tangible-Equity. This puts Grasim Industries in the upper half of its industry. The industry median Return-on-Tangible-Equity is 5.08. Grasim Industries' value of 11.35% is 123.4% above this benchmark. Historically, Grasim Industries' own Return-on-Tangible-Equity has ranged from 5.64 to 18.22 over the past decade. While the company's 10-year median is 11.95 vs. the industry median of 5.08, Grasim Industries 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 Building Materials company?
The median Return-on-Tangible-Equity among Building Materials companies is 5.08, based on 397 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. Grasim Industries's current Return-on-Tangible-Equity of 11.35% is 123.4% 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 Grasim Industries and its competitors. For the Building Materials industry, the median Return-on-Tangible-Equity is 5.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Grasim Industries's current Return-on-Tangible-Equity is 11.35%, which is near median its own 10-year median of 11.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Grasim Industries stock overvalued right now?
Based on GuruFocus' analysis, Grasim Industries (NSE:GRASIM) is currently considered Fairly Valued. The stock's GF Value™ is ₹2,957.72, compared to a current price of ₹3,213.60 — trading 8.7% above its estimated fair value. The current Return-on-Tangible-Equity is 11.35%, which is near median its 10-year median of 11.95 and 123.4% above the Building Materials industry median of 5.08. Grasim Industries' overall GF Score™ is 88/100 with 8 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 Grasim Industries (NSE:GRASIM), the current Return-on-Tangible-Equity is 11.35% 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 Grasim Industries (NSE:GRASIM) Overvalued in 2026?
Based on GuruFocus' analysis, Grasim Industries stock appears to be overvalued.
The current stock price of ₹3,213.60 is trading 8.7% above its estimated GF Value™ of ₹2,957.72.
GuruFocus considers Grasim Industries to be Fairly Valued.
Key valuation signals for NSE:GRASIM:
Return-on-Tangible-Equity: 11.35% (near median its 10-year median of 11.95)
GF Value™: ₹2,957.72 vs. price of ₹3,213.60 (8.7% above fair value)
Industry Position: 123.4% above the Building Materials median (#162 of 397)
No single metric tells the full story. See the NSE:GRASIM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Grasim Industries Ltd is a cement and viscose staple fibre (VSF) manufacturing firm based in India. The activities of the group fall under the operating segments of Cellulosic Fibres, Chemicals, Building materials, Financial Services, and Others. It derives key revenue from the Building materials segment which covers products like grey cement, paints, white cement, and allied products. Geographically, the company derives a majority of its revenue from the domestic market and the rest from other countries through exports.
88GF Score
Get the complete analysis for NSE:GRASIM
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NSE:GRASIM has been successfully added to your 
