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HFCLNSE:HFCL -5.00%56 Return-on-Tangible-Equity is 16.94% as of Mar. 2026, which is 23% above its 10-year median of 13.82. GuruFocus rates NSE:HFCL with a GF Score™ of 56/100 and a GF Value™ of ₹95.38 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 2,383 Hardware companies, HFCL ranks better than 61.73% 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. HFCL's annualized net income for the quarter that ended in Mar. 2026 was ₹7,140 Mil. HFCL's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹42,156 Mil. Therefore, HFCL's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 16.94%.
The historical rank and industry rank for HFCL's Return-on-Tangible-Equity or its related term are showing as below:
NSE:HFCL'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 5.09 Med: 13.82 Max: 17.42
Current: 8.59
During the past 13 years, HFCL's highest Return-on-Tangible-Equity was 17.42%. The lowest was 5.09%. And the median was 13.82%.
NSE:HFCL's Return-on-Tangible-Equity is ranked better than 61.73% of 2383
companies
in the Hardware industry
Industry Median: 5.34
vs NSE:HFCL: 8.59
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.
HFCL Return-on-Tangible-Equity Related Terms
HFCL Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for HFCL'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:HFCL vs CSCO, CIEN, MSI: Return-on-Tangible-Equity Comparison
For the Communication Equipment subindustry, HFCL'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.
HFCL Return-on-Tangible-Equity vs Hardware Industry
For the Hardware industry and Technology sector, HFCL's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where HFCL'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 16.94% mean?
HFCL (NSE:HFCL) has a Return-on-Tangible-Equity of 16.94% 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 HFCL and its competitors. This is 23% above median its historical median of 13.82. Over the past decade, HFCL's Return-on-Tangible-Equity has ranged from 5.09 to 17.42. According to the industry distribution chart, HFCL ranks #912 out of 2383 companies in the Hardware industry, placing it in the top 38.3%.
Is HFCL's Return-on-Tangible-Equity too high?
HFCL's current Return-on-Tangible-Equity of 16.94% is 23% above median its 10-year median of 13.82. Over the past 10 years, this metric has ranged from a low of 5.09 to a high of 17.42. The Hardware industry median Return-on-Tangible-Equity is 5.34. HFCL's value of 16.94% is 217.2% above this industry median. Based on the distribution chart, HFCL ranks #912 out of 2383 companies in the Hardware industry, which is above the industry midpoint. Overall, HFCL has a GF Score™ of 56/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does HFCL's Return-on-Tangible-Equity compare to CSCO and CIEN?
According to the Hardware industry distribution chart, HFCL ranks #912 out of 2383 companies for Return-on-Tangible-Equity. This puts HFCL in the upper half of its industry. The industry median Return-on-Tangible-Equity is 5.34. HFCL's value of 16.94% is 217.2% above this benchmark. Historically, HFCL's own Return-on-Tangible-Equity has ranged from 5.09 to 17.42 over the past decade. While the company's 10-year median is 13.82 vs. the industry median of 5.34, HFCL 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 Hardware company?
The median Return-on-Tangible-Equity among Hardware companies is 5.34, based on 2,383 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. HFCL's current Return-on-Tangible-Equity of 16.94% is 217.2% 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 HFCL and its competitors. For the Hardware industry, the median Return-on-Tangible-Equity is 5.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HFCL's current Return-on-Tangible-Equity is 16.94%, which is 23% above median its own 10-year median of 13.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HFCL stock overvalued right now?
Based on GuruFocus' analysis, HFCL (NSE:HFCL) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹95.38, compared to a current price of ₹213.17 — trading 123.5% above its estimated fair value. The current Return-on-Tangible-Equity is 16.94%, which is 23% above median its 10-year median of 13.82 and 217.2% above the Hardware industry median of 5.34. HFCL's overall GF Score™ is 56/100 with 7 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 HFCL (NSE:HFCL), the current Return-on-Tangible-Equity is 16.94% 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 HFCL (NSE:HFCL) Overvalued in 2026?
Based on GuruFocus' analysis, HFCL stock appears to be overvalued.
The current stock price of ₹213.17 is trading 123.5% above its estimated GF Value™ of ₹95.38.
GuruFocus considers HFCL to be Significantly Overvalued.
Key valuation signals for NSE:HFCL:
Return-on-Tangible-Equity: 16.94% (23% above median its 10-year median of 13.82)
GF Value™: ₹95.38 vs. price of ₹213.17 (123.5% above fair value)
Industry Position: 217.2% above the Hardware median (#912 of 2383)
No single metric tells the full story. See the NSE:HFCL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HFCL Ltd is an Indian manufacturer and exporter of optical fiber cables and broadband equipment for the telecommunication industry. Firm business segments include Telecom Products and Turnkey Contracts Services. The Telecom Product segment produces optical fiber cable, optical fiber, and telecom equipment. The Turnkey Contracts and services segment is engaged in delivering telecom infrastructure and communication network systems for Telecom Operators, Defence Services, Railways, Safe and Smart Cities, etc. The firm's products and solutions include Fiber optics, Telecommunication, Defence, and Passive Networking Components. It generates substantial revenue from the sale of turnkey projects and related activities.
56GF Score
Get the complete analysis for NSE:HFCL
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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