PPAP AutomotiveNSE:PPAP +16.90%73 Return-on-Tangible-Equity is 55.77% as of Mar. 2026, which is 1165% above its 10-year median of 4.41. GuruFocus rates NSE:PPAP with a GF Score™ of 73/100 and a GF Value™ of ₹229.14 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,282 Vehicles & Parts companies, PPAP Automotive ranks better than 74.1% 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. PPAP Automotive's annualized net income for the quarter that ended in Mar. 2026 was ₹1,818 Mil. PPAP Automotive's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹3,259 Mil. Therefore, PPAP Automotive's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 55.77%.
The historical rank and industry rank for PPAP Automotive's Return-on-Tangible-Equity or its related term are showing as below:
NSE:PPAP'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -4.82 Med: 4.41 Max: 15.92
Current: 14.84
During the past 13 years, PPAP Automotive's highest Return-on-Tangible-Equity was 15.92%. The lowest was -4.82%. And the median was 4.41%.
NSE:PPAP's Return-on-Tangible-Equity is ranked better than 74.1% of 1282
companies
in the Vehicles & Parts industry
Industry Median: 7.5
vs NSE:PPAP: 14.84
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.
PPAP Automotive Return-on-Tangible-Equity Related Terms
PPAP Automotive Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for PPAP Automotive'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:PPAP vs ORLY, AZO: Return-on-Tangible-Equity Comparison
For the Auto Parts subindustry, PPAP Automotive'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.
PPAP Automotive Return-on-Tangible-Equity vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, PPAP Automotive's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where PPAP Automotive'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 55.77% mean?
PPAP Automotive (NSE:PPAP) has a Return-on-Tangible-Equity of 55.77% 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 PPAP Automotive and its competitors. This is 1165% above median its historical median of 4.41. According to the industry distribution chart, PPAP Automotive ranks #332 out of 1282 companies in the Vehicles & Parts industry, placing it in the top 25.9%.
Is PPAP Automotive's Return-on-Tangible-Equity too high?
PPAP Automotive's current Return-on-Tangible-Equity of 55.77% is 1165% above median its 10-year median of 4.41. The Vehicles & Parts industry median Return-on-Tangible-Equity is 7.50. PPAP Automotive's value of 55.77% is 643.6% above this industry median. Based on the distribution chart, PPAP Automotive ranks #332 out of 1282 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, PPAP Automotive has a GF Score™ of 73/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does PPAP Automotive's Return-on-Tangible-Equity compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, PPAP Automotive ranks #332 out of 1282 companies for Return-on-Tangible-Equity. This puts PPAP Automotive in the upper half of its industry. The industry median Return-on-Tangible-Equity is 7.50. PPAP Automotive's value of 55.77% is 643.6% above this benchmark. While the company's 10-year median is 4.41 vs. the industry median of 7.50, PPAP Automotive 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 Vehicles & Parts company?
The median Return-on-Tangible-Equity among Vehicles & Parts companies is 7.50, based on 1,282 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. PPAP Automotive's current Return-on-Tangible-Equity of 55.77% is 643.6% 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 PPAP Automotive and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Equity is 7.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PPAP Automotive's current Return-on-Tangible-Equity is 55.77%, which is 1165% above median its own 10-year median of 4.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PPAP Automotive stock overvalued right now?
Based on GuruFocus' analysis, PPAP Automotive (NSE:PPAP) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹229.14, compared to a current price of ₹323.37 — trading 41.1% above its estimated fair value. The current Return-on-Tangible-Equity is 55.77%, which is 1165% above median its 10-year median of 4.41 and 643.6% above the Vehicles & Parts industry median of 7.50. PPAP Automotive's overall GF Score™ is 73/100 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 PPAP Automotive (NSE:PPAP), the current Return-on-Tangible-Equity is 55.77% 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 PPAP Automotive (NSE:PPAP) Overvalued in 2026?
Based on GuruFocus' analysis, PPAP Automotive stock appears to be overvalued.
The current stock price of ₹323.37 is trading 41.1% above its estimated GF Value™ of ₹229.14.
GuruFocus considers PPAP Automotive to be Significantly Overvalued.
Key valuation signals for NSE:PPAP:
Return-on-Tangible-Equity: 55.77% (1165% above median its 10-year median of 4.41)
GF Value™: ₹229.14 vs. price of ₹323.37 (41.1% above fair value)
Industry Position: 643.6% above the Vehicles & Parts median (#332 of 1282)
No single metric tells the full story. See the NSE:PPAP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PPAP Automotive Ltd is an Indian company specializing in the manufacturing of automotive sealing systems, interior and exterior automotive parts using plastic and rubber extrusion and plastic injection molding technologies. It serves many automotive OEMs in passenger vehicles, two-wheelers, and commercial vehicle segments. The company operates manufacturing facilities across key automotive hubs in India, including Noida, Surajpur, Chennai, Pathredi, and Viramgam. PPAP also develops high-precision plastic injection toolings and has expanded into lithium-ion battery pack solutions for electric two-wheelers and three-wheelers.
73GF Score
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