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Industrial & Prudential Investment Co (BOM:501298) ROA % Explanation
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.
Industrial & Prudential Investment Co ROA % Related Terms
Industrial & Prudential Investment Co ROA % Historical 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.
For the Asset Management subindustry, Industrial & Prudential Investment Co'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.
Industrial & Prudential Investment Co ROA % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Industrial & Prudential Investment Co's ROA % distribution charts can be found below:
* The bar in red indicates where Industrial & Prudential Investment Co'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.
Industrial & Prudential Investment Co (BOM:501298) has a ROA % of 7.95% 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 Industrial & Prudential Investment Co and its competitors. This is 15% above median its historical median of 6.92. Over the past decade, Industrial & Prudential Investment Co's ROA % has ranged from 4.79 to 11.77. According to the industry distribution chart, Industrial & Prudential Investment Co ranks #578 out of 1637 companies in the Asset Management industry, placing it in the top 35.3%.
Is Industrial & Prudential Investment Co's ROA % too high?
Industrial & Prudential Investment Co's current ROA % of 7.95% is 15% above median its 10-year median of 6.92. Over the past 10 years, this metric has ranged from a low of 4.79 to a high of 11.77. The Asset Management industry median ROA % is 4.20. Industrial & Prudential Investment Co's value of 7.95% is 89.3% above this industry median. Based on the distribution chart, Industrial & Prudential Investment Co ranks #578 out of 1637 companies in the Asset Management industry, which is above the industry midpoint. Overall, Industrial & Prudential Investment Co has a GF Score™ of 66/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Industrial & Prudential Investment Co's ROA % compare to BLK and BX?
According to the Asset Management industry distribution chart, Industrial & Prudential Investment Co ranks #578 out of 1637 companies for ROA %. This puts Industrial & Prudential Investment Co in the upper half of its industry. The industry median ROA % is 4.20. Industrial & Prudential Investment Co's value of 7.95% is 89.3% above this benchmark. Historically, Industrial & Prudential Investment Co's own ROA % has ranged from 4.79 to 11.77 over the past decade. While the company's 10-year median is 6.92 vs. the industry median of 4.20, Industrial & Prudential Investment Co 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 ROA % for an Asset Management company?
The median ROA % among Asset Management companies is 4.20, based on 1,637 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. Industrial & Prudential Investment Co's current ROA % of 7.95% is 89.3% 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 Industrial & Prudential Investment Co and its competitors. For the Asset Management industry, the median ROA % is 4.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Industrial & Prudential Investment Co's current ROA % is 7.95%, which is 15% above median its own 10-year median of 6.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Industrial & Prudential Investment Co stock overvalued right now?
Based on GuruFocus' analysis, Industrial & Prudential Investment Co (BOM:501298) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹5,378.09, compared to a current price of ₹6,595.00 — trading 22.6% above its estimated fair value. The current ROA % is 7.95%, which is 15% above median its 10-year median of 6.92 and 89.3% above the Asset Management industry median of 4.20. Industrial & Prudential Investment Co's overall GF Score™ is 66/100 with 7 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 Industrial & Prudential Investment Co (BOM:501298), the current ROA % is 7.95% 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 Industrial & Prudential Investment Co (BOM:501298) Overvalued in 2026?
Based on GuruFocus' analysis, Industrial & Prudential Investment Co stock appears to be overvalued.
The current stock price of ₹6,595.00 is trading 22.6% above its estimated GF Value™ of ₹5,378.09.
GuruFocus considers Industrial & Prudential Investment Co to be Modestly Overvalued.
Key valuation signals for BOM:501298:
ROA %: 7.95% (15% above median its 10-year median of 6.92)
GF Value™: ₹5,378.09 vs. price of ₹6,595.00 (22.6% above fair value)
Industry Position: 89.3% above the Asset Management median (#578 of 1637)
No single metric tells the full story. See the BOM:501298 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Industrial & Prudential Investment Co Ltd is a Non-Banking Finance Company. The activities of the company comprise of acquiring, selling, and maintaining investments and also engages in the lending business. Geographically, the company serves Indian market customers.
66GF Score
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