R M Drip & Sprinklers SystemsNSE:RMDRIP -1.47%80 Return-on-Tangible-Equity is 36.07% as of Mar. 2026, which is 101% above its 10-year median of 17.98. GuruFocus rates NSE:RMDRIP with a GF Score™ of 80/100 and a GF Value™ of ₹31.90 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 198 Farm & Heavy Construction Machinery companies, R M Drip & Sprinklers Systems ranks better than 88.89% 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. R M Drip & Sprinklers Systems's annualized net income for the quarter that ended in Mar. 2026 was ₹400 Mil. R M Drip & Sprinklers Systems's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹1,109 Mil. Therefore, R M Drip & Sprinklers Systems's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 36.07%.
The historical rank and industry rank for R M Drip & Sprinklers Systems's Return-on-Tangible-Equity or its related term are showing as below:
NSE:RMDRIP'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -40.44 Med: 17.98 Max: 42.96
Current: 37.92
During the past 13 years, R M Drip & Sprinklers Systems's highest Return-on-Tangible-Equity was 42.96%. The lowest was -40.44%. And the median was 17.98%.
NSE:RMDRIP's Return-on-Tangible-Equity is ranked better than 88.89% of 198
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 9.355
vs NSE:RMDRIP: 37.92
R M Drip & Sprinklers Systems (NSE:RMDRIP) 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.
R M Drip & Sprinklers Systems Return-on-Tangible-Equity Related Terms
R M Drip & Sprinklers Systems Return-on-Tangible-Equity Historical Data
* 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.
R M Drip & Sprinklers Systems Return-on-Tangible-Equity Chart
NSE:RMDRIP vs CAT, DE, PCAR: Return-on-Tangible-Equity Comparison
For the Farm & Heavy Construction Machinery subindustry, R M Drip & Sprinklers Systems'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.
R M Drip & Sprinklers Systems Return-on-Tangible-Equity vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, R M Drip & Sprinklers Systems's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where R M Drip & Sprinklers Systems'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 36.07% mean?
R M Drip & Sprinklers Systems (NSE:RMDRIP) has a Return-on-Tangible-Equity of 36.07% 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 R M Drip & Sprinklers Systems and its competitors. This is 101% above median its historical median of 17.98. According to the industry distribution chart, R M Drip & Sprinklers Systems ranks #22 out of 198 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 11.1%.
Is R M Drip & Sprinklers Systems' Return-on-Tangible-Equity too high?
R M Drip & Sprinklers Systems' current Return-on-Tangible-Equity of 36.07% is 101% above median its 10-year median of 17.98. The Farm & Heavy Construction Machinery industry median Return-on-Tangible-Equity is 9.36. R M Drip & Sprinklers Systems' value of 36.07% is 285.6% above this industry median. Based on the distribution chart, R M Drip & Sprinklers Systems ranks #22 out of 198 companies in the Farm & Heavy Construction Machinery industry, which is in the top quartile — a strong position relative to peers. Overall, R M Drip & Sprinklers Systems has a GF Score™ of 80/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does R M Drip & Sprinklers Systems' Return-on-Tangible-Equity compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, R M Drip & Sprinklers Systems ranks #22 out of 198 companies for Return-on-Tangible-Equity. This places R M Drip & Sprinklers Systems in the top 11% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 9.36. R M Drip & Sprinklers Systems' value of 36.07% is 285.6% above this benchmark. While the company's 10-year median is 17.98 vs. the industry median of 9.36, R M Drip & Sprinklers Systems 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 Farm & Heavy Construction Machinery company?
The median Return-on-Tangible-Equity among Farm & Heavy Construction Machinery companies is 9.36, based on 198 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. R M Drip & Sprinklers Systems's current Return-on-Tangible-Equity of 36.07% is 285.6% 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 R M Drip & Sprinklers Systems and its competitors. For the Farm & Heavy Construction Machinery industry, the median Return-on-Tangible-Equity is 9.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. R M Drip & Sprinklers Systems's current Return-on-Tangible-Equity is 36.07%, which is 101% above median its own 10-year median of 17.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is R M Drip & Sprinklers Systems stock overvalued right now?
Based on GuruFocus' analysis, R M Drip & Sprinklers Systems (NSE:RMDRIP) is currently considered Possible Value Trap. The stock's GF Value™ is ₹31.90, compared to a current price of ₹18.82 — trading 41% below its estimated fair value. The current Return-on-Tangible-Equity is 36.07%, which is 101% above median its 10-year median of 17.98 and 285.6% above the Farm & Heavy Construction Machinery industry median of 9.36. R M Drip & Sprinklers Systems' overall GF Score™ is 80/100 with 5 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 R M Drip & Sprinklers Systems (NSE:RMDRIP), the current Return-on-Tangible-Equity is 36.07% 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 R M Drip & Sprinklers Systems (NSE:RMDRIP) Overvalued in 2026?
Based on GuruFocus' analysis, R M Drip & Sprinklers Systems stock appears to be undervalued.
The current stock price of ₹18.82 is trading 41% below its estimated GF Value™ of ₹31.90.
GuruFocus considers R M Drip & Sprinklers Systems to be Possible Value Trap.
Key valuation signals for NSE:RMDRIP:
Return-on-Tangible-Equity: 36.07% (101% above median its 10-year median of 17.98)
GF Value™: ₹31.90 vs. price of ₹18.82 (41% below fair value)
Industry Position: 285.6% above the Farm & Heavy Construction Machinery median (#22 of 198)
No single metric tells the full story. See the NSE:RMDRIP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
R M Drip & Sprinklers Systems Business Description
R M Drip & Sprinklers Systems Ltd designs, manufactures, and sells micro-irrigation equipment. The company's products are Drip Irrigation, Sprinkler Irrigation, and Filters, among others. The Company also assists the farmers in designing and installing its Sprinkler and Drip Irrigation systems according to their needs. The Company is operating only in one segment, i.e., Micro Irrigation Systems. The dealer network expands from Maharashtra, Madhya Pradesh, Gujarat, Karnataka, and has extended its market to Uttar Pradesh, Bihar, and Jharkhand.
80GF Score
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