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SRM ContractorsNSE:SRM -0.56%51 Return-on-Tangible-Equity is 62.07% as of Mar. 2026, which is 89% above its 10-year median of 32.81. GuruFocus rates NSE:SRM with a GF Score™ of 51/100. The stock has 1 warning sign investors should review. Among 1,712 Construction companies, SRM Contractors ranks better than 86.1% 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. SRM Contractors's annualized net income for the quarter that ended in Mar. 2026 was ₹2,164 Mil. SRM Contractors's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹3,486 Mil. Therefore, SRM Contractors's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 62.07%.
The historical rank and industry rank for SRM Contractors's Return-on-Tangible-Equity or its related term are showing as below:
NSE:SRM'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 27.17 Med: 32.81 Max: 49.31
Current: 36.07
During the past 6 years, SRM Contractors's highest Return-on-Tangible-Equity was 49.31%. The lowest was 27.17%. And the median was 32.81%.
NSE:SRM's Return-on-Tangible-Equity is ranked better than 86.1% of 1712
companies
in the Construction industry
Industry Median: 8.21
vs NSE:SRM: 36.07
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.
SRM Contractors Return-on-Tangible-Equity Related Terms
SRM Contractors Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for SRM Contractors'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:SRM vs PWR, FIX, EME: Return-on-Tangible-Equity Comparison
For the Engineering & Construction subindustry, SRM Contractors'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.
SRM Contractors Return-on-Tangible-Equity vs Construction Industry
For the Construction industry and Industrials sector, SRM Contractors's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where SRM Contractors'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 62.07% mean?
SRM Contractors (NSE:SRM) has a Return-on-Tangible-Equity of 62.07% 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 SRM Contractors and its competitors. This is 89% above median its historical median of 32.81. Over the past decade, SRM Contractors' Return-on-Tangible-Equity has ranged from 27.17 to 49.31. According to the industry distribution chart, SRM Contractors ranks #238 out of 1712 companies in the Construction industry, placing it in the top 13.9%.
Is SRM Contractors' Return-on-Tangible-Equity too high?
SRM Contractors' current Return-on-Tangible-Equity of 62.07% is 89% above median its 10-year median of 32.81. Over the past 10 years, this metric has ranged from a low of 27.17 to a high of 49.31. The Construction industry median Return-on-Tangible-Equity is 8.21. SRM Contractors' value of 62.07% is 656% above this industry median. Based on the distribution chart, SRM Contractors ranks #238 out of 1712 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, SRM Contractors has a GF Score™ of 51/100, reflecting its overall financial health beyond just this single metric.
How does SRM Contractors' Return-on-Tangible-Equity compare to PWR and FIX?
According to the Construction industry distribution chart, SRM Contractors ranks #238 out of 1712 companies for Return-on-Tangible-Equity. This places SRM Contractors in the top 14% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.21. SRM Contractors' value of 62.07% is 656% above this benchmark. Historically, SRM Contractors' own Return-on-Tangible-Equity has ranged from 27.17 to 49.31 over the past decade. While the company's 10-year median is 32.81 vs. the industry median of 8.21, SRM Contractors 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 Construction company?
The median Return-on-Tangible-Equity among Construction companies is 8.21, based on 1,712 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. SRM Contractors's current Return-on-Tangible-Equity of 62.07% is 656% 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 SRM Contractors and its competitors. For the Construction industry, the median Return-on-Tangible-Equity is 8.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SRM Contractors's current Return-on-Tangible-Equity is 62.07%, which is 89% above median its own 10-year median of 32.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SRM Contractors stock overvalued right now?
SRM Contractors (NSE:SRM) has a current Return-on-Tangible-Equity of 62.07%. The current Return-on-Tangible-Equity is 62.07%, which is 89% above median its 10-year median of 32.81 and 656% above the Construction industry median of 8.21. SRM Contractors' overall GF Score™ is 51/100 with 1 warning sign 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 SRM Contractors (NSE:SRM), the current Return-on-Tangible-Equity is 62.07% 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.
SRM Contractors Ltd is an engineering, construction, and development company. It is engaged in the construction of roads (including bridges), tunnels, drainage systems, irrigation projects, food control infrastructure, slope stabilisation works, and other miscellaneous civil construction activities in Jammu and Kashmir and Ladakh. The business of the company is segregated into the following core service verticals: Road Projects, Tunnel Projects, Slope Stabilization, and Miscellaneous Civil Construction. It undertakes construction works both as an EPC contractor and on an item rate basis for infrastructure projects.
51GF Score
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