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Royal Arc ElectrodesNSE:ROYALARC +2.07%19 Return-on-Tangible-Equity is 14.98% as of Mar. 2026, which is 5% below its 10-year median of 15.79. GuruFocus rates NSE:ROYALARC with a GF Score™ of 19/100. The stock has 4 warning signs investors should review. Among 2,969 Industrial Products companies, Royal Arc Electrodes ranks better than 53.32% 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. Royal Arc Electrodes's annualized net income for the quarter that ended in Mar. 2026 was ₹114.6 Mil. Royal Arc Electrodes's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹765.2 Mil. Therefore, Royal Arc Electrodes's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 14.98%.
The historical rank and industry rank for Royal Arc Electrodes's Return-on-Tangible-Equity or its related term are showing as below:
NSE:ROYALARC'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 7.49 Med: 15.79 Max: 37.45
Current: 7.49
During the past 5 years, Royal Arc Electrodes's highest Return-on-Tangible-Equity was 37.45%. The lowest was 7.49%. And the median was 15.79%.
NSE:ROYALARC's Return-on-Tangible-Equity is ranked better than 53.32% of 2969
companies
in the Industrial Products industry
Industry Median: 6.76
vs NSE:ROYALARC: 7.49
Royal Arc Electrodes (NSE:ROYALARC) 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.
Royal Arc Electrodes Return-on-Tangible-Equity Related Terms
Royal Arc Electrodes Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Royal Arc Electrodes'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.
Royal Arc Electrodes Return-on-Tangible-Equity Chart
NSE:ROYALARC vs VRT, BE: Return-on-Tangible-Equity Comparison
For the Electrical Equipment & Parts subindustry, Royal Arc Electrodes'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.
Royal Arc Electrodes Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Royal Arc Electrodes's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Royal Arc Electrodes'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 two times the semi-annual (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 14.98% mean?
Royal Arc Electrodes (NSE:ROYALARC) has a Return-on-Tangible-Equity of 14.98% 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 Royal Arc Electrodes and its competitors. This is near median its historical median of 15.79. Over the past decade, Royal Arc Electrodes' Return-on-Tangible-Equity has ranged from 7.49 to 37.45. According to the industry distribution chart, Royal Arc Electrodes ranks #1386 out of 2969 companies in the Industrial Products industry, placing it in the top 46.7%.
Is Royal Arc Electrodes' Return-on-Tangible-Equity too high?
Royal Arc Electrodes' current Return-on-Tangible-Equity of 14.98% is near median its 10-year median of 15.79. Over the past 10 years, this metric has ranged from a low of 7.49 to a high of 37.45. The Industrial Products industry median Return-on-Tangible-Equity is 6.76. Royal Arc Electrodes' value of 14.98% is 121.6% above this industry median. Based on the distribution chart, Royal Arc Electrodes ranks #1386 out of 2969 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Royal Arc Electrodes has a GF Score™ of 19/100, reflecting its overall financial health beyond just this single metric.
How does Royal Arc Electrodes' Return-on-Tangible-Equity compare to VRT and BE?
According to the Industrial Products industry distribution chart, Royal Arc Electrodes ranks #1386 out of 2969 companies for Return-on-Tangible-Equity. This puts Royal Arc Electrodes in the upper half of its industry. The industry median Return-on-Tangible-Equity is 6.76. Royal Arc Electrodes' value of 14.98% is 121.6% above this benchmark. Historically, Royal Arc Electrodes' own Return-on-Tangible-Equity has ranged from 7.49 to 37.45 over the past decade. While the company's 10-year median is 15.79 vs. the industry median of 6.76, Royal Arc Electrodes 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 6.76, 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. Royal Arc Electrodes's current Return-on-Tangible-Equity of 14.98% is 121.6% 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 Royal Arc Electrodes and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Equity is 6.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Royal Arc Electrodes's current Return-on-Tangible-Equity is 14.98%, which is near median its own 10-year median of 15.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Royal Arc Electrodes stock overvalued right now?
Royal Arc Electrodes (NSE:ROYALARC) has a current Return-on-Tangible-Equity of 14.98%. The current Return-on-Tangible-Equity is 14.98%, which is near median its 10-year median of 15.79 and 121.6% above the Industrial Products industry median of 6.76. Royal Arc Electrodes' overall GF Score™ is 19/100 with 4 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 Royal Arc Electrodes (NSE:ROYALARC), the current Return-on-Tangible-Equity is 14.98% 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.
Royal Arc Electrodes Ltd is engaged in the business of manufacturing welding consumables such as welding electrodes, flux cored wire, MIG/TIG wires, which finds its application in the welding of tanks, boilers, heavy structures, beams, pipes, cylinders, pressure vessels, etc. which are used in industries like railways, roadways, airport infrastructure, refineries, shipyards, mines, sugar industries, telecom industries, thermal power stations, PEB sectors, etc. Further, the Company is also engaged in the business of trading ancillary/incidental products like wheels, electro slag, welding flux cored wire, electro slag strip cladding, saw flux, and TIG /MIG wires. It manufactures its products from copper coated wire, MS Strips, MS wire, SS strip, SS wire, nickel wire, ferro alloy powder, etc.
19GF Score
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