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Sahana SystemNSE:SAHANA +7.76%70 Return-on-Tangible-Equity is 40.93% as of Mar. 2025, which is 43% below its 10-year median of 71.89. GuruFocus rates NSE:SAHANA with a GF Score™ of 70/100. The stock has 4 warning signs investors should review. Among 2,487 Software companies, Sahana System ranks better than 80.62% 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. Sahana System's annualized net income for the quarter that ended in Mar. 2025 was ₹392 Mil. Sahana System's average shareholder tangible equity for the quarter that ended in Mar. 2025 was ₹958 Mil. Therefore, Sahana System's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2025 was 40.93%.
The historical rank and industry rank for Sahana System's Return-on-Tangible-Equity or its related term are showing as below:
NSE:SAHANA'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 40.93 Med: 71.89 Max: 629
Current: 40.93
During the past 6 years, Sahana System's highest Return-on-Tangible-Equity was 629.00%. The lowest was 40.93%. And the median was 71.89%.
NSE:SAHANA's Return-on-Tangible-Equity is ranked better than 80.62% of 2487
companies
in the Software industry
Industry Median: 9.03
vs NSE:SAHANA: 40.93
Sahana System (NSE:SAHANA) 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.
Sahana System Return-on-Tangible-Equity Related Terms
Sahana System Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Sahana System'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:SAHANA vs IBM, ACN, FISV: Return-on-Tangible-Equity Comparison
For the Information Technology Services subindustry, Sahana System'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.
Sahana System Return-on-Tangible-Equity vs Software Industry
For the Software industry and Technology sector, Sahana System's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Sahana System'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 one times the 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 40.93% mean?
Sahana System (NSE:SAHANA) has a Return-on-Tangible-Equity of 40.93% 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 Sahana System and its competitors. This is 43% below median its historical median of 71.89. Over the past decade, Sahana System's Return-on-Tangible-Equity has ranged from 40.93 to 629.00. According to the industry distribution chart, Sahana System ranks #482 out of 2487 companies in the Software industry, placing it in the top 19.4%.
Is Sahana System's Return-on-Tangible-Equity too high?
Sahana System's current Return-on-Tangible-Equity of 40.93% is 43% below median its 10-year median of 71.89. Over the past 10 years, this metric has ranged from a low of 40.93 to a high of 629.00. The Software industry median Return-on-Tangible-Equity is 9.03. Sahana System's value of 40.93% is 353.3% above this industry median. Based on the distribution chart, Sahana System ranks #482 out of 2487 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Sahana System has a GF Score™ of 70/100, reflecting its overall financial health beyond just this single metric.
How does Sahana System's Return-on-Tangible-Equity compare to IBM and ACN?
According to the Software industry distribution chart, Sahana System ranks #482 out of 2487 companies for Return-on-Tangible-Equity. This places Sahana System in the top 19% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 9.03. Sahana System's value of 40.93% is 353.3% above this benchmark. Historically, Sahana System's own Return-on-Tangible-Equity has ranged from 40.93 to 629.00 over the past decade. While the company's 10-year median is 71.89 vs. the industry median of 9.03, Sahana System 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 Software company?
The median Return-on-Tangible-Equity among Software companies is 9.03, based on 2,487 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. Sahana System's current Return-on-Tangible-Equity of 40.93% is 353.3% 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 Sahana System and its competitors. For the Software industry, the median Return-on-Tangible-Equity is 9.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sahana System's current Return-on-Tangible-Equity is 40.93%, which is 43% below median its own 10-year median of 71.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sahana System stock overvalued right now?
Sahana System (NSE:SAHANA) has a current Return-on-Tangible-Equity of 40.93%. The current Return-on-Tangible-Equity is 40.93%, which is 43% below median its 10-year median of 71.89 and 353.3% above the Software industry median of 9.03. Sahana System's overall GF Score™ is 70/100 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 Sahana System (NSE:SAHANA), the current Return-on-Tangible-Equity is 40.93% 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.
Sahana System Ltd is engaged in the business of offering IT-related services including web app development, mobile application development, AI & ML development, ChatBot development, product prototyping, graphics designing, UI-UX design, SEO & ASO, digital marketing, website & application migration, cyber security and outsourcing of IT services. The company is also engaged in the trading of hardware instruments related to Franking Machines, Computers, LEDs, Laptops, and others. The segments of the company are IT Services and Hardware Trading.
70GF Score
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