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. Rama Telecom's annualized net income for the quarter that ended in Mar. 2025 was ₹72.1 Mil. Rama Telecom's average shareholder tangible equity for the quarter that ended in Mar. 2025 was ₹139.6 Mil. Therefore, Rama Telecom's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2025 was 51.66%.
The historical rank and industry rank for Rama Telecom's Return-on-Tangible-Equity or its related term are showing as below:
NSE:RTL's Return-on-Tangible-Equity is not ranked *
in the Telecommunication Services industry.
Industry Median: 14.005 * Ranked among companies with meaningful Return-on-Tangible-Equity only.
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.
Rama Telecom Return-on-Tangible-Equity Related Terms
Rama Telecom Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Rama Telecom'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.
Rama Telecom Return-on-Tangible-Equity Chart
Rama Telecom Annual Data
Trend
Mar22
Mar23
Mar24
Mar25
Return-on-Tangible-Equity
17.25
16.98
31.73
42.53
Rama Telecom Semi-Annual Data
Mar22
Mar23
Mar24
Sep24
Mar25
Return-on-Tangible-Equity
0.00
0.00
0.00
36.64
51.66
NSE:RTL vs TMUS, VZ, T: Return-on-Tangible-Equity Comparison
For the Telecom Services subindustry, Rama Telecom'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.
Rama Telecom Return-on-Tangible-Equity vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Rama Telecom's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Rama Telecom'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. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 51.66% mean?
Rama Telecom (NSE:RTL) has a Return-on-Tangible-Equity of 51.66% as of Mar. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Rama Telecom and its competitors.
Is Rama Telecom's Return-on-Tangible-Equity too high?
Rama Telecom's current Return-on-Tangible-Equity is 51.66%. The Telecommunication Services industry median Return-on-Tangible-Equity is 14.01. Rama Telecom's value of 51.66% is 268.9% above this industry median. Overall, Rama Telecom has a GF Score™ of 18/100, reflecting its overall financial health beyond just this single metric.
How does Rama Telecom's Return-on-Tangible-Equity compare to TMUS and VZ?
Rama Telecom's Return-on-Tangible-Equity of 51.66% can be compared against companies in the Telecommunication Services industry. The industry median Return-on-Tangible-Equity is 14.01. Rama Telecom's value of 51.66% is 268.9% above this benchmark. 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 Telecommunication Services company?
The median Return-on-Tangible-Equity among Telecommunication Services companies is 14.01, based on 326 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. Rama Telecom's current Return-on-Tangible-Equity of 51.66% is 268.9% 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 Rama Telecom and its competitors. For the Telecommunication Services industry, the median Return-on-Tangible-Equity is 14.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rama Telecom's current Return-on-Tangible-Equity is 51.66%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rama Telecom stock overvalued right now?
Rama Telecom (NSE:RTL) has a current Return-on-Tangible-Equity of 51.66%. The current Return-on-Tangible-Equity is 51.66% and 268.9% above the Telecommunication Services industry median of 14.01. Rama Telecom's overall GF Score™ is 18/100. 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 Rama Telecom (NSE:RTL), the current Return-on-Tangible-Equity is 51.66% as of Mar. 2025. 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.
Rama Telecom Ltd is a technology-driven engineering company with expertise in optical fiber, providing end to end customized networking solutions in the telecom forefront. The company continuously supports its services to the Railways, Telecom, Petroleum and Airport sector. Its business services are provided to the Railway Sector and Telecom Sector. It operates in a single Business segment, which is the business of Trading & installation works of contractors. The company provides customized E2E networking solutions in the Telecom & Datacom forefront.
18GF Score
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