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SML MahindraNSE:SMLMAH -2.98%65 Return-on-Tangible-Equity is 55.63% as of Jun. 2026, which is 404% above its 10-year median of 11.04. GuruFocus rates NSE:SMLMAH with a GF Score™ of 65/100 and a GF Value™ of ₹2,726.82 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 1,281 Vehicles & Parts companies, SML Mahindra ranks better than 93.68% 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. SML Mahindra's annualized net income for the quarter that ended in Jun. 2026 was ₹2,545 Mil. SML Mahindra's average shareholder tangible equity for the quarter that ended in Jun. 2026 was ₹4,575 Mil. Therefore, SML Mahindra's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 55.63%.
The historical rank and industry rank for SML Mahindra's Return-on-Tangible-Equity or its related term are showing as below:
NSE:SMLMAH'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -68.19 Med: 11.04 Max: 71.37
Current: 41.72
During the past 13 years, SML Mahindra's highest Return-on-Tangible-Equity was 71.37%. The lowest was -68.19%. And the median was 11.04%.
NSE:SMLMAH's Return-on-Tangible-Equity is ranked better than 93.68% of 1281
companies
in the Vehicles & Parts industry
Industry Median: 7.58
vs NSE:SMLMAH: 41.72
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.
SML Mahindra Return-on-Tangible-Equity Related Terms
SML Mahindra Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for SML Mahindra'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:SMLMAH vs TSLA, GM, F: Return-on-Tangible-Equity Comparison
For the Auto Manufacturers subindustry, SML Mahindra'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.
SML Mahindra Return-on-Tangible-Equity vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, SML Mahindra's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where SML Mahindra'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 (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 55.63% mean?
SML Mahindra (NSE:SMLMAH) has a Return-on-Tangible-Equity of 55.63% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on SML Mahindra and its competitors. This is 404% above median its historical median of 11.04. According to the industry distribution chart, SML Mahindra ranks #81 out of 1281 companies in the Vehicles & Parts industry, placing it in the top 6.3%.
Is SML Mahindra's Return-on-Tangible-Equity too high?
SML Mahindra's current Return-on-Tangible-Equity of 55.63% is 404% above median its 10-year median of 11.04. The Vehicles & Parts industry median Return-on-Tangible-Equity is 7.58. SML Mahindra's value of 55.63% is 633.9% above this industry median. Based on the distribution chart, SML Mahindra ranks #81 out of 1281 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, SML Mahindra has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SML Mahindra's Return-on-Tangible-Equity compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, SML Mahindra ranks #81 out of 1281 companies for Return-on-Tangible-Equity. This places SML Mahindra in the top 6% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.58. SML Mahindra's value of 55.63% is 633.9% above this benchmark. While the company's 10-year median is 11.04 vs. the industry median of 7.58, SML Mahindra 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 1,281 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. SML Mahindra's current Return-on-Tangible-Equity of 55.63% is 633.9% 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 SML Mahindra 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. SML Mahindra's current Return-on-Tangible-Equity is 55.63%, which is 404% above median its own 10-year median of 11.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SML Mahindra stock overvalued right now?
Based on GuruFocus' analysis, SML Mahindra (NSE:SMLMAH) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹2,726.82, compared to a current price of ₹3,961.70 — trading 45.3% above its estimated fair value. The current Return-on-Tangible-Equity is 55.63%, which is 404% above median its 10-year median of 11.04 and 633.9% above the Vehicles & Parts industry median of 7.58. SML Mahindra's overall GF Score™ is 65/100 with 2 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 SML Mahindra (NSE:SMLMAH), the current Return-on-Tangible-Equity is 55.63% as of Jun. 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 SML Mahindra (NSE:SMLMAH) Overvalued in 2026?
Based on GuruFocus' analysis, SML Mahindra stock appears to be overvalued.
The current stock price of ₹3,961.70 is trading 45.3% above its estimated GF Value™ of ₹2,726.82.
GuruFocus considers SML Mahindra to be Significantly Overvalued.
Key valuation signals for NSE:SMLMAH:
Return-on-Tangible-Equity: 55.63% (404% above median its 10-year median of 11.04)
GF Value™: ₹2,726.82 vs. price of ₹3,961.70 (45.3% above fair value)
Industry Position: 633.9% above the Vehicles & Parts median (#81 of 1281)
No single metric tells the full story. See the NSE:SMLMAH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SML Mahindra Ltd, formerly SML Isuzu Ltd is engaged in the business of manufacturing and selling of commercial vehicles including light and medium-duty trucks, buses, ambulances, and specialized vehicles. The company integrates Japanese technology with local manufacturing to offer reliable and cost-effective transportation solutions. Its product portfolio spans cargo trucks and passenger buses with variants that support different industries such as education, tourism, and corporate transport. Revenue is majorly generated through the sale of vehicles and after-sales services including telematics support. The company operates predominantly in India and exports to several countries across Africa and Asia.
65GF Score
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