Ushanti Colour Chem (NSE:UCL) Return-on-Tangible-Equity: 8.35% (As of Mar. 2026) — 25% Above Median

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NSE:UCL Ushanti Colour Chem Ltd NSE:UCL
55 GF Score
Price ₹183.00
GF Value ₹90.73
Valuation Significantly Overvalued
! 7 Warning Signs
View Full Analysis

What is Ushanti Colour Chem Return-on-Tangible-Equity?

Ushanti Colour Chem NSE:UCL +1.98% 55 Return-on-Tangible-Equity is 8.35% as of Mar. 2026, which is 25% above its 10-year median of 6.70. GuruFocus rates NSE:UCL with a GF Score™ of 55/100 and a GF Value™ of ₹90.73 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,568 Chemicals companies, Ushanti Colour Chem ranks worse than 75.32% 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. Ushanti Colour Chem's annualized net income for the quarter that ended in Mar. 2026 was ₹38 Mil. Ushanti Colour Chem's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹458 Mil. Therefore, Ushanti Colour Chem's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 8.35%.

The historical rank and industry rank for Ushanti Colour Chem's Return-on-Tangible-Equity or its related term are showing as below:

NSE:UCL' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -6.06   Med: 6.7   Max: 32.32
Current: -0.45

During the past 13 years, Ushanti Colour Chem's highest Return-on-Tangible-Equity was 32.32%. The lowest was -6.06%. And the median was 6.70%.

NSE:UCL's Return-on-Tangible-Equity is ranked worse than
75.32% of 1568 companies
in the Chemicals industry
Industry Median: 5.785 vs NSE:UCL: -0.45

Ushanti Colour Chem  (NSE:UCL) 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.


Ushanti Colour Chem Return-on-Tangible-Equity Related Terms


Ushanti Colour Chem Return-on-Tangible-Equity Historical Data

* Premium members only.

The historical data trend for Ushanti Colour Chem'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.

Ushanti Colour Chem Return-on-Tangible-Equity Chart

Ushanti Colour Chem 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 3.97 2.52 -5.78 -6.06 -0.44

Ushanti Colour Chem Semi-Annual Data
Mar16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 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 -6.22 -5.15 -2.38 -9.83 8.35

NSE:UCL vs LIN, SHW, ECL: Return-on-Tangible-Equity Comparison

For the Specialty Chemicals subindustry, Ushanti Colour Chem'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.


Ushanti Colour Chem Return-on-Tangible-Equity vs Chemicals Industry

For the Chemicals industry and Basic Materials sector, Ushanti Colour Chem's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Ushanti Colour Chem's Return-on-Tangible-Equity falls into.


NSE:UCL
55GF Score
Ushanti Colour Chem Ltd NSE:UCL
Return-on-Tangible-Equity is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Ushanti Colour Chem Return-on-Tangible-Equity Calculation

Ushanti Colour Chem'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 )
=-2.044/( (440.57+495.684 )/ 2 )
=-2.044/468.127
=-0.44 %

Ushanti Colour Chem'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: Sep. 2025 )(Q: Mar. 2026 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2026 )  (Q: Sep. 2025 )(Q: Mar. 2026 )
=38.22/( (419.843+495.684)/ 2 )
=38.22/457.7635
=8.35 %

* 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 two times the semi-annual (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 8.35% mean?
Ushanti Colour Chem (NSE:UCL) has a Return-on-Tangible-Equity of 8.35% 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 Ushanti Colour Chem and its competitors. This is 25% above median its historical median of 6.70. According to the industry distribution chart, Ushanti Colour Chem ranks #1181 out of 1568 companies in the Chemicals industry, placing it in the top 75.3%.
Is Ushanti Colour Chem's Return-on-Tangible-Equity too high?
Ushanti Colour Chem's current Return-on-Tangible-Equity of 8.35% is 25% above median its 10-year median of 6.70. The Chemicals industry median Return-on-Tangible-Equity is 5.79. Ushanti Colour Chem's value of 8.35% is 44.3% above this industry median. Based on the distribution chart, Ushanti Colour Chem ranks #1181 out of 1568 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Ushanti Colour Chem has a GF Score™ of 55/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ushanti Colour Chem's Return-on-Tangible-Equity compare to LIN and SHW?
According to the Chemicals industry distribution chart, Ushanti Colour Chem ranks #1181 out of 1568 companies for Return-on-Tangible-Equity. This places Ushanti Colour Chem in the lower half of its industry. The industry median Return-on-Tangible-Equity is 5.79. Ushanti Colour Chem's value of 8.35% is 44.3% above this benchmark. While the company's 10-year median is 6.70 vs. the industry median of 5.79, Ushanti Colour Chem 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 Chemicals company?
The median Return-on-Tangible-Equity among Chemicals companies is 5.79, based on 1,568 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. Ushanti Colour Chem's current Return-on-Tangible-Equity of 8.35% is 44.3% 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 Ushanti Colour Chem and its competitors. For the Chemicals industry, the median Return-on-Tangible-Equity is 5.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ushanti Colour Chem's current Return-on-Tangible-Equity is 8.35%, which is 25% above median its own 10-year median of 6.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ushanti Colour Chem stock overvalued right now?
Based on GuruFocus' analysis, Ushanti Colour Chem (NSE:UCL) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹90.73, compared to a current price of ₹183.00 — trading 101.7% above its estimated fair value. The current Return-on-Tangible-Equity is 8.35%, which is 25% above median its 10-year median of 6.70 and 44.3% above the Chemicals industry median of 5.79. Ushanti Colour Chem's overall GF Score™ is 55/100 with 7 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 Ushanti Colour Chem (NSE:UCL), the current Return-on-Tangible-Equity is 8.35% 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 Ushanti Colour Chem (NSE:UCL) Overvalued in 2026?

Based on GuruFocus' analysis, Ushanti Colour Chem stock appears to be overvalued. The current stock price of ₹183.00 is trading 101.7% above its estimated GF Value™ of ₹90.73. GuruFocus considers Ushanti Colour Chem to be Significantly Overvalued.

Key valuation signals for NSE:UCL:

  • Return-on-Tangible-Equity: 8.35% (25% above median its 10-year median of 6.70)
  • GF Value™: ₹90.73 vs. price of ₹183.00 (101.7% above fair value)
  • GF Score™: 55/100 with 7 warning signs
  • Industry Position: 44.3% above the Chemicals median (#1181 of 1568)

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


Ushanti Colour Chem Business Description

Address 88/8, Phase - 1, GIDC, Vatva, Ahmedabad, GJ, IND, 382445
Ushanti Colour Chem Ltd is engaged in the business of manufacturing and trading of dyestuffs. It manufactures reactive and direct dyestuffs. It also manufactures copper phthalocyamine, blue crude used for manufacturing dyestuffs. The company caters to textile, garment, cotton, leather, nylon, paper, wool, ink, wood, plastic and paint industries.
55GF Score

Get the complete analysis for NSE:UCL

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

₹183.00
Price
₹90.73
GF Value