Servotech Renewable Power System (NSE:SERVOTECH) Return-on-Tangible-Equity: 17.07% (As of Mar. 2026) — 46% Above Median

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NSE:SERVOTECH Servotech Renewable Power System Ltd NSE:SERVOTECH
89 GF Score
Price ₹99.80
GF Value ₹151.17
Valuation Possible Value Trap
! 3 Warning Signs
View Full Analysis

What is Servotech Renewable Power System Return-on-Tangible-Equity?

Servotech Renewable Power System NSE:SERVOTECH +2.95% 89 Return-on-Tangible-Equity is 17.07% as of Mar. 2026, which is 46% above its 10-year median of 11.69. GuruFocus rates NSE:SERVOTECH with a GF Score™ of 89/100 and a GF Value™ of ₹151.17 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 2,969 Industrial Products companies, Servotech Renewable Power System ranks better than 72.11% 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. Servotech Renewable Power System's annualized net income for the quarter that ended in Mar. 2026 was ₹491 Mil. Servotech Renewable Power System's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹2,877 Mil. Therefore, Servotech Renewable Power System's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 17.07%.

The historical rank and industry rank for Servotech Renewable Power System's Return-on-Tangible-Equity or its related term are showing as below:

NSE:SERVOTECH' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 2.23   Med: 11.69   Max: 46.55
Current: 12.7

During the past 13 years, Servotech Renewable Power System's highest Return-on-Tangible-Equity was 46.55%. The lowest was 2.23%. And the median was 11.69%.

NSE:SERVOTECH's Return-on-Tangible-Equity is ranked better than
72.11% of 2969 companies
in the Industrial Products industry
Industry Median: 6.76 vs NSE:SERVOTECH: 12.70

Servotech Renewable Power System  (NSE:SERVOTECH) 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.


Servotech Renewable Power System Return-on-Tangible-Equity Related Terms


Servotech Renewable Power System Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for Servotech Renewable Power 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.

Servotech Renewable Power System Return-on-Tangible-Equity Chart

Servotech Renewable Power System Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.46 17.34 10.56 17.33 12.81

Servotech Renewable Power System Quarterly Data
Mar21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Return-on-Tangible-Equity Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.19 8.87 1.98 21.90 17.07

NSE:SERVOTECH vs VRT, BE: Return-on-Tangible-Equity Comparison

For the Electrical Equipment & Parts subindustry, Servotech Renewable Power 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.


Servotech Renewable Power System Return-on-Tangible-Equity vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Servotech Renewable Power System's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Servotech Renewable Power System's Return-on-Tangible-Equity falls into.


NSE:SERVOTECH
89GF Score
Servotech Renewable Power System Ltd NSE:SERVOTECH
Return-on-Tangible-Equity is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Servotech Renewable Power System Return-on-Tangible-Equity Calculation

Servotech Renewable Power System's annualized Return-on-Tangible-Equity for the fiscal year that ended in Mar. 2026 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Mar. 2026 )  (A: Mar. 2025 )(A: Mar. 2026 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Mar. 2026 )  (A: Mar. 2025 )(A: Mar. 2026 )
=335.549/( (2362.736+2877.322 )/ 2 )
=335.549/2620.029
=12.81 %

Servotech Renewable Power System's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=491.236/( (0+2877.322)/ 1 )
=491.236/2877.322
=17.07 %

* 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 17.07% mean?
Servotech Renewable Power System (NSE:SERVOTECH) has a Return-on-Tangible-Equity of 17.07% 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 Servotech Renewable Power System and its competitors. This is 46% above median its historical median of 11.69. Over the past decade, Servotech Renewable Power System's Return-on-Tangible-Equity has ranged from 2.23 to 46.55. According to the industry distribution chart, Servotech Renewable Power System ranks #828 out of 2969 companies in the Industrial Products industry, placing it in the top 27.9%.
Is Servotech Renewable Power System's Return-on-Tangible-Equity too high?
Servotech Renewable Power System's current Return-on-Tangible-Equity of 17.07% is 46% above median its 10-year median of 11.69. Over the past 10 years, this metric has ranged from a low of 2.23 to a high of 46.55. The Industrial Products industry median Return-on-Tangible-Equity is 6.76. Servotech Renewable Power System's value of 17.07% is 152.5% above this industry median. Based on the distribution chart, Servotech Renewable Power System ranks #828 out of 2969 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Servotech Renewable Power System has a GF Score™ of 89/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Servotech Renewable Power System's Return-on-Tangible-Equity compare to VRT and BE?
According to the Industrial Products industry distribution chart, Servotech Renewable Power System ranks #828 out of 2969 companies for Return-on-Tangible-Equity. This puts Servotech Renewable Power System in the upper half of its industry. The industry median Return-on-Tangible-Equity is 6.76. Servotech Renewable Power System's value of 17.07% is 152.5% above this benchmark. Historically, Servotech Renewable Power System's own Return-on-Tangible-Equity has ranged from 2.23 to 46.55 over the past decade. While the company's 10-year median is 11.69 vs. the industry median of 6.76, Servotech Renewable Power 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 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. Servotech Renewable Power System's current Return-on-Tangible-Equity of 17.07% is 152.5% 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 Servotech Renewable Power System 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. Servotech Renewable Power System's current Return-on-Tangible-Equity is 17.07%, which is 46% above median its own 10-year median of 11.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Servotech Renewable Power System stock overvalued right now?
Based on GuruFocus' analysis, Servotech Renewable Power System (NSE:SERVOTECH) is currently considered Possible Value Trap. The stock's GF Value™ is ₹151.17, compared to a current price of ₹99.80 — trading 34% below its estimated fair value. The current Return-on-Tangible-Equity is 17.07%, which is 46% above median its 10-year median of 11.69 and 152.5% above the Industrial Products industry median of 6.76. Servotech Renewable Power System's overall GF Score™ is 89/100 with 3 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 Servotech Renewable Power System (NSE:SERVOTECH), the current Return-on-Tangible-Equity is 17.07% 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 Servotech Renewable Power System (NSE:SERVOTECH) Overvalued in 2026?

Based on GuruFocus' analysis, Servotech Renewable Power System stock appears to be undervalued. The current stock price of ₹99.80 is trading 34% below its estimated GF Value™ of ₹151.17. GuruFocus considers Servotech Renewable Power System to be Possible Value Trap.

Key valuation signals for NSE:SERVOTECH:

  • Return-on-Tangible-Equity: 17.07% (46% above median its 10-year median of 11.69)
  • GF Value™: ₹151.17 vs. price of ₹99.80 (34% below fair value)
  • GF Score™: 89/100 with 3 warning signs
  • Industry Position: 152.5% above the Industrial Products median (#828 of 2969)

No single metric tells the full story. See the NSE:SERVOTECH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Servotech Renewable Power System Business Description

Address 806, 8th Floor, Crown Heights, Sector 10, Rohini, Hotel Crowne Plaza, New Delhi, IND, 110085
Servotech Renewable Power System Ltd is an Indian company in manufacturing, trading, and exporting LED, UPS, Solar Products & Flameproof LED Lights. The firm is engaged in the production, development, and marketing of both indoor and outdoor LED lighting products, solar products, and Ultraviolet C products. The product portfolio of the company includes LED tube lights and bulbs, street lights, floodlights, canopy lights, yard lights, FLP tubes, hoarding lights, system controllers, UPS, solar charge controllers, solar rooftops, UV Disinfection Lamp, UV Disinfection Handheld, UV Disinfection Truck, Sterilization Box, UVC RoboTruk, and UVLEN based on far UVC technology and others. Substantial revenue is derived from domestic sales.
89GF Score

Get the complete analysis for NSE:SERVOTECH

Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹99.80
Price
₹151.17
GF Value