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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Investment & Precision Castings's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹151 Mil.
Investment & Precision Castings's average Total Assets over the quarter that ended in Mar. 2026 was ₹2,166 Mil. Therefore, Investment & Precision Castings's annualized ROA % for the quarter that ended in Mar. 2026 was 6.96%.
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.
Investment & Precision Castings ROA % Related Terms
Investment & Precision Castings 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 Steel subindustry, Investment & Precision Castings'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.
Investment & Precision Castings ROA % vs Steel Industry
For the Steel industry and Basic Materials sector, Investment & Precision Castings's ROA % distribution charts can be found below:
* The bar in red indicates where Investment & Precision Castings'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.
Investment & Precision Castings (BOM:504786) has a ROA % of 6.96% 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 Investment & Precision Castings and its competitors. This is 103% above median its historical median of 3.43. According to the industry distribution chart, Investment & Precision Castings ranks #150 out of 634 companies in the Steel industry, placing it in the top 23.7%.
Is Investment & Precision Castings' ROA % too high?
Investment & Precision Castings' current ROA % of 6.96% is 103% above median its 10-year median of 3.43. The Steel industry median ROA % is 2.01. Investment & Precision Castings' value of 6.96% is 247.1% above this industry median. Based on the distribution chart, Investment & Precision Castings ranks #150 out of 634 companies in the Steel industry, which is in the top quartile — a strong position relative to peers. Overall, Investment & Precision Castings has a GF Score™ of 57/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Investment & Precision Castings' ROA % compare to NUE and STLD?
According to the Steel industry distribution chart, Investment & Precision Castings ranks #150 out of 634 companies for ROA %. This places Investment & Precision Castings in the top 24% of its industry — outperforming the majority of peers. The industry median ROA % is 2.01. Investment & Precision Castings' value of 6.96% is 247.1% above this benchmark. While the company's 10-year median is 3.43 vs. the industry median of 2.01, Investment & Precision Castings 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 a Steel company?
The median ROA % among Steel companies is 2.01, based on 634 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. Investment & Precision Castings's current ROA % of 6.96% is 247.1% 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 Investment & Precision Castings and its competitors. For the Steel industry, the median ROA % is 2.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Investment & Precision Castings's current ROA % is 6.96%, which is 103% above median its own 10-year median of 3.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Investment & Precision Castings stock overvalued right now?
Based on GuruFocus' analysis, Investment & Precision Castings (BOM:504786) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹464.15, compared to a current price of ₹1,002.50 — trading 116% above its estimated fair value. The current ROA % is 6.96%, which is 103% above median its 10-year median of 3.43 and 247.1% above the Steel industry median of 2.01. Investment & Precision Castings' overall GF Score™ is 57/100 with 6 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 Investment & Precision Castings (BOM:504786), the current ROA % is 6.96% 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 Investment & Precision Castings (BOM:504786) Overvalued in 2026?
Based on GuruFocus' analysis, Investment & Precision Castings stock appears to be overvalued.
The current stock price of ₹1,002.50 is trading 116% above its estimated GF Value™ of ₹464.15.
GuruFocus considers Investment & Precision Castings to be Significantly Overvalued.
Key valuation signals for BOM:504786:
ROA %: 6.96% (103% above median its 10-year median of 3.43)
GF Value™: ₹464.15 vs. price of ₹1,002.50 (116% above fair value)
Industry Position: 247.1% above the Steel median (#150 of 634)
No single metric tells the full story. See the BOM:504786 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Investment & Precision Castings Business Description
Investment & Precision Castings Ltd is engaged in the steel casting business. The company's products portfolio includes two-three-four-wheeler, bus tractor parts; aircraft parts; turbochargers for diesel engines; power plants, pumps and valves, medical implants; electrical and instrumentation; general engineering; electronics; electronics; compressors; artisan castings; and machined components from bar stock. The company also provides its products and services to ancillaries and the wind power generation industry. It operates in two segments Investment Castings and Power Generation. The majority of the company's revenue comes from the Investment Castings segment.
57GF Score
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