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Sarthak MetalsNSE:SMLT -1.62%63 Return-on-Tangible-Equity is 4.84% as of Mar. 2026, which is 65% below its 10-year median of 13.94. GuruFocus rates NSE:SMLT with a GF Score™ of 63/100 and a GF Value™ of ₹119.79 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 2,970 Industrial Products companies, Sarthak Metals ranks worse than 61.95% 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. Sarthak Metals's annualized net income for the quarter that ended in Mar. 2026 was ₹60 Mil. Sarthak Metals's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹1,235 Mil. Therefore, Sarthak Metals's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 4.84%.
The historical rank and industry rank for Sarthak Metals's Return-on-Tangible-Equity or its related term are showing as below:
NSE:SMLT'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 3.49 Med: 13.94 Max: 41.97
Current: 3.78
During the past 13 years, Sarthak Metals's highest Return-on-Tangible-Equity was 41.97%. The lowest was 3.49%. And the median was 13.94%.
NSE:SMLT's Return-on-Tangible-Equity is ranked worse than 61.95% of 2970
companies
in the Industrial Products industry
Industry Median: 6.725
vs NSE:SMLT: 3.78
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.
Sarthak Metals Return-on-Tangible-Equity Related Terms
Sarthak Metals Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Sarthak Metals'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:SMLT vs CRS, ATI, MLI: Return-on-Tangible-Equity Comparison
For the Metal Fabrication subindustry, Sarthak Metals'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.
Sarthak Metals Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Sarthak Metals's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Sarthak Metals'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 (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 4.84% mean?
Sarthak Metals (NSE:SMLT) has a Return-on-Tangible-Equity of 4.84% 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 Sarthak Metals and its competitors. This is 65% below median its historical median of 13.94. Over the past decade, Sarthak Metals' Return-on-Tangible-Equity has ranged from 3.49 to 41.97. According to the industry distribution chart, Sarthak Metals ranks #1840 out of 2970 companies in the Industrial Products industry, placing it in the top 62%.
Is Sarthak Metals' Return-on-Tangible-Equity too high?
Sarthak Metals' current Return-on-Tangible-Equity of 4.84% is 65% below median its 10-year median of 13.94. Over the past 10 years, this metric has ranged from a low of 3.49 to a high of 41.97. The Industrial Products industry median Return-on-Tangible-Equity is 6.73. Sarthak Metals' value of 4.84% is 28% below this industry median. Based on the distribution chart, Sarthak Metals ranks #1840 out of 2970 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Sarthak Metals has a GF Score™ of 63/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Sarthak Metals' Return-on-Tangible-Equity compare to CRS and ATI?
According to the Industrial Products industry distribution chart, Sarthak Metals ranks #1840 out of 2970 companies for Return-on-Tangible-Equity. This places Sarthak Metals in the lower half of its industry. The industry median Return-on-Tangible-Equity is 6.73. Sarthak Metals' value of 4.84% is 28% below this benchmark. Historically, Sarthak Metals' own Return-on-Tangible-Equity has ranged from 3.49 to 41.97 over the past decade. While the company's 10-year median is 13.94 vs. the industry median of 6.73, Sarthak Metals has consistently been below 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 6.73, based on 2,970 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. Sarthak Metals's current Return-on-Tangible-Equity of 4.84% is 28% below 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 Sarthak Metals and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Equity is 6.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sarthak Metals's current Return-on-Tangible-Equity is 4.84%, which is 65% below median its own 10-year median of 13.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sarthak Metals stock overvalued right now?
Based on GuruFocus' analysis, Sarthak Metals (NSE:SMLT) is currently considered Possible Value Trap. The stock's GF Value™ is ₹119.79, compared to a current price of ₹67.47 — trading 43.7% below its estimated fair value. The current Return-on-Tangible-Equity is 4.84%, which is 65% below median its 10-year median of 13.94 and 28% below the Industrial Products industry median of 6.73. Sarthak Metals' overall GF Score™ is 63/100 with 6 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 Sarthak Metals (NSE:SMLT), the current Return-on-Tangible-Equity is 4.84% 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 Sarthak Metals (NSE:SMLT) Overvalued in 2026?
Based on GuruFocus' analysis, Sarthak Metals stock appears to be undervalued.
The current stock price of ₹67.47 is trading 43.7% below its estimated GF Value™ of ₹119.79.
GuruFocus considers Sarthak Metals to be Possible Value Trap.
Key valuation signals for NSE:SMLT:
Return-on-Tangible-Equity: 4.84% (65% below median its 10-year median of 13.94)
GF Value™: ₹119.79 vs. price of ₹67.47 (43.7% below fair value)
Industry Position: 28% below the Industrial Products median (#1840 of 2970)
No single metric tells the full story. See the NSE:SMLT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sarthak Metals Ltd focuses on precision metallurgy, enhancing steel manufacturing processes, and providing industrial welding consumables. The company is engaged in the manufacturing and selling of a wide variety of cored wires, ferroalloys, and aluminum flipping coils, providing products and solutions that are targeted to attaining precision in metallurgy and fine-tuning of steel manufacturing. The company generates the majority of its revenue from the sale of products within India.
63GF Score
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