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Sharda Motor IndustriesNSE:SHARDAMOTR +0.22%91 Return-on-Tangible-Equity is 28.64% as of Dec. 2025, which is 18% above its 10-year median of 24.31. GuruFocus rates NSE:SHARDAMOTR with a GF Score™ of 91/100 and a GF Value™ of ₹931.69 (Fairly Valued). Among 1,283 Vehicles & Parts companies, Sharda Motor Industries ranks better than 92.36% 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. Sharda Motor Industries's annualized net income for the quarter that ended in Dec. 2025 was ₹3,254 Mil. Sharda Motor Industries's average shareholder tangible equity for the quarter that ended in Dec. 2025 was ₹11,360 Mil. Therefore, Sharda Motor Industries's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 28.64%.
The historical rank and industry rank for Sharda Motor Industries's Return-on-Tangible-Equity or its related term are showing as below:
NSE:SHARDAMOTR'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 12.52 Med: 24.31 Max: 34.41
Current: 33.07
During the past 13 years, Sharda Motor Industries's highest Return-on-Tangible-Equity was 34.41%. The lowest was 12.52%. And the median was 24.31%.
NSE:SHARDAMOTR's Return-on-Tangible-Equity is ranked better than 92.36% of 1283
companies
in the Vehicles & Parts industry
Industry Median: 7.58
vs NSE:SHARDAMOTR: 33.07
Sharda Motor Industries (NSE:SHARDAMOTR) 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.
Sharda Motor Industries Return-on-Tangible-Equity Related Terms
Sharda Motor Industries Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Sharda Motor Industries'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.
Sharda Motor Industries Return-on-Tangible-Equity Chart
NSE:SHARDAMOTR vs ORLY, AZO: Return-on-Tangible-Equity Comparison
For the Auto Parts subindustry, Sharda Motor Industries'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.
Sharda Motor Industries Return-on-Tangible-Equity vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Sharda Motor Industries's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Sharda Motor Industries'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 (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 28.64% mean?
Sharda Motor Industries (NSE:SHARDAMOTR) has a Return-on-Tangible-Equity of 28.64% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Sharda Motor Industries and its competitors. This is 18% above median its historical median of 24.31. Over the past decade, Sharda Motor Industries' Return-on-Tangible-Equity has ranged from 12.52 to 34.41. According to the industry distribution chart, Sharda Motor Industries ranks #98 out of 1283 companies in the Vehicles & Parts industry, placing it in the top 7.6%.
Is Sharda Motor Industries' Return-on-Tangible-Equity too high?
Sharda Motor Industries' current Return-on-Tangible-Equity of 28.64% is 18% above median its 10-year median of 24.31. Over the past 10 years, this metric has ranged from a low of 12.52 to a high of 34.41. The Vehicles & Parts industry median Return-on-Tangible-Equity is 7.58. Sharda Motor Industries' value of 28.64% is 277.8% above this industry median. Based on the distribution chart, Sharda Motor Industries ranks #98 out of 1283 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Sharda Motor Industries has a GF Score™ of 91/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Sharda Motor Industries' Return-on-Tangible-Equity compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Sharda Motor Industries ranks #98 out of 1283 companies for Return-on-Tangible-Equity. This places Sharda Motor Industries in the top 8% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.58. Sharda Motor Industries' value of 28.64% is 277.8% above this benchmark. Historically, Sharda Motor Industries' own Return-on-Tangible-Equity has ranged from 12.52 to 34.41 over the past decade. While the company's 10-year median is 24.31 vs. the industry median of 7.58, Sharda Motor Industries 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 Vehicles & Parts company?
The median Return-on-Tangible-Equity among Vehicles & Parts companies is 7.58, based on 1,283 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. Sharda Motor Industries's current Return-on-Tangible-Equity of 28.64% is 277.8% 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 Sharda Motor Industries and its competitors. For the Vehicles & Parts industry, the median Return-on-Tangible-Equity is 7.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sharda Motor Industries's current Return-on-Tangible-Equity is 28.64%, which is 18% above median its own 10-year median of 24.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sharda Motor Industries stock overvalued right now?
Based on GuruFocus' analysis, Sharda Motor Industries (NSE:SHARDAMOTR) is currently considered Fairly Valued. The stock's GF Value™ is ₹931.69, compared to a current price of ₹870.55 — trading 6.6% below its estimated fair value. The current Return-on-Tangible-Equity is 28.64%, which is 18% above median its 10-year median of 24.31 and 277.8% above the Vehicles & Parts industry median of 7.58. Sharda Motor Industries' overall GF Score™ is 91/100. 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 Sharda Motor Industries (NSE:SHARDAMOTR), the current Return-on-Tangible-Equity is 28.64% as of Dec. 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.
Is Sharda Motor Industries (NSE:SHARDAMOTR) Overvalued in 2026?
Based on GuruFocus' analysis, Sharda Motor Industries stock appears to be undervalued.
The current stock price of ₹870.55 is trading 6.6% below its estimated GF Value™ of ₹931.69.
GuruFocus considers Sharda Motor Industries to be Fairly Valued.
Key valuation signals for NSE:SHARDAMOTR:
Return-on-Tangible-Equity: 28.64% (18% above median its 10-year median of 24.31)
GF Value™: ₹931.69 vs. price of ₹870.55 (6.6% below fair value)
Industry Position: 277.8% above the Vehicles & Parts median (#98 of 1283)
No single metric tells the full story. See the NSE:SHARDAMOTR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sharda Motor Industries Ltd is engaged in the manufacturing and assembly of auto components and white goods components. Its product portfolio includes exhaust systems, catalytic converters, suspension systems, sheet metal components, and plastic parts for the automotive and white goods industries. It operates in a single segment which is manufacturing and trading of auto component parts. Geographically, the company caters to both Indian and international markets and derives a majority of its revenue from its business in India.
91GF Score
Get the complete analysis for NSE:SHARDAMOTR
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