ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Hindustan Organic Chemicals's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹628 Mil.
Hindustan Organic Chemicals's average Total Assets over the quarter that ended in Mar. 2026 was ₹15,420 Mil. Therefore, Hindustan Organic Chemicals's annualized ROA % for the quarter that ended in Mar. 2026 was 4.07%.
The historical rank and industry rank for Hindustan Organic Chemicals's ROA % or its related term are showing as below:
BOM:500449'
s ROA % Range Over the Past 10 Years
Min: -14.19 Med: -2.82 Max: 24.98
Current: -0.82
During the past 13 years, Hindustan Organic Chemicals's highest ROA % was 24.98%. The lowest was -14.19%. And the median was -2.82%.
BOM:500449's ROA % is ranked worse than 75.7% of 1613
companies
in the Chemicals industry
Industry Median: 2.9
vs BOM:500449: -0.82
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
* 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.
For the Chemicals subindustry, Hindustan Organic Chemicals's ROA %, along with its competitors' market caps and ROA % 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.
Hindustan Organic Chemicals ROA % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Hindustan Organic Chemicals's ROA % distribution charts can be found below:
* The bar in red indicates where Hindustan Organic Chemicals's ROA % 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 ROA %, the net income of the last fiscal year and the average total assets 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.
ROA % is displayed in the 30-year financial page.
Hindustan Organic Chemicals (BOM:500449) has a ROA % of 4.07% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Hindustan Organic Chemicals and its competitors. According to the industry distribution chart, Hindustan Organic Chemicals ranks #1221 out of 1613 companies in the Chemicals industry, placing it in the top 75.7%.
Is Hindustan Organic Chemicals' ROA % too high?
Hindustan Organic Chemicals' current ROA % is 4.07%. The Chemicals industry median ROA % is 2.90. Hindustan Organic Chemicals' value of 4.07% is 40.3% above this industry median. Based on the distribution chart, Hindustan Organic Chemicals ranks #1221 out of 1613 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Hindustan Organic Chemicals has a GF Score™ of 57/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hindustan Organic Chemicals' ROA % compare to DOW?
According to the Chemicals industry distribution chart, Hindustan Organic Chemicals ranks #1221 out of 1613 companies for ROA %. This places Hindustan Organic Chemicals in the lower half of its industry. The industry median ROA % is 2.90. Hindustan Organic Chemicals' value of 4.07% is 40.3% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for a Chemicals company?
The median ROA % among Chemicals companies is 2.90, based on 1,613 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hindustan Organic Chemicals's current ROA % of 4.07% is 40.3% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Hindustan Organic Chemicals and its competitors. For the Chemicals industry, the median ROA % is 2.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hindustan Organic Chemicals's current ROA % is 4.07%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hindustan Organic Chemicals stock overvalued right now?
Based on GuruFocus' analysis, Hindustan Organic Chemicals (BOM:500449) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹33.38, compared to a current price of ₹38.09 — trading 14.1% above its estimated fair value. The current ROA % is 4.07% and 40.3% above the Chemicals industry median of 2.90. Hindustan Organic Chemicals' overall GF Score™ is 57/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Hindustan Organic Chemicals (BOM:500449), the current ROA % is 4.07% 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.
Is Hindustan Organic Chemicals (BOM:500449) Overvalued in 2026?
Based on GuruFocus' analysis, Hindustan Organic Chemicals stock appears to be overvalued.
The current stock price of ₹38.09 is trading 14.1% above its estimated GF Value™ of ₹33.38.
GuruFocus considers Hindustan Organic Chemicals to be Modestly Overvalued.
Key valuation signals for BOM:500449:
ROA %: 4.07%
GF Value™: ₹33.38 vs. price of ₹38.09 (14.1% above fair value)
Industry Position: 40.3% above the Chemicals median (#1221 of 1613)
No single metric tells the full story. See the BOM:500449 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hindustan Organic Chemicals Ltd is engaged in the manufacturing of bulk industrial chemicals and chemical intermediates. It has manufacturing units in Kochi, Kerala. The company produces Phenol, Acetone, and Hydrogen Peroxide using Benzene and LPG from petroleum refineries. These chemicals are essential for industries such as resins, pharmaceuticals, dyes, rubber chemicals, paints, and pesticides. Phenol is used in resins, plasticizers, and pharmaceuticals; Acetone serves as a solvent and chemical intermediate in explosives and lacquers; Hydrogen Peroxide is an eco-friendly bleaching agent used in textiles, paper, electronics, and environmental applications. The company also produces polytetrafluoroethylene (PTFE) plastic through its subsidiary and focuses on quality and safety.
57GF Score
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