Welcast SteelsBOM:504988 +3.03%57 ROA % is 15.52% as of Mar. 2026, which is 1094% above its 10-year median of 1.30. GuruFocus rates BOM:504988 with a GF Score™ of 57/100 and a GF Value™ of ₹586.81 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 633 Steel companies, Welcast Steels ranks worse than 94.31% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Welcast Steels's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹55.2 Mil.
Welcast Steels's average Total Assets over the quarter that ended in Mar. 2026 was ₹356.0 Mil. Therefore, Welcast Steels's annualized ROA % for the quarter that ended in Mar. 2026 was 15.52%.
The historical rank and industry rank for Welcast Steels's ROA % or its related term are showing as below:
BOM:504988'
s ROA % Range Over the Past 10 Years
Min: -12.73 Med: 1.3 Max: 10.93
Current: -12.19
During the past 13 years, Welcast Steels's highest ROA % was 10.93%. The lowest was -12.73%. And the median was 1.30%.
BOM:504988's ROA % is ranked worse than 94.31% of 633
companies
in the Steel industry
Industry Median: 1.92
vs BOM:504988: -12.19
Welcast Steels (BOM:504988) 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.
Welcast Steels ROA % Related Terms
Welcast Steels ROA % Historical Data
* Premium members only.
The historical data trend for Welcast Steels's ROA % 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.
For the Steel subindustry, Welcast Steels'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.
Welcast Steels ROA % vs Steel Industry
For the Steel industry and Basic Materials sector, Welcast Steels's ROA % distribution charts can be found below:
* The bar in red indicates where Welcast Steels'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.
Welcast Steels (BOM:504988) has a ROA % of 15.52% 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 Welcast Steels and its competitors. This is 1094% above median its historical median of 1.30. According to the industry distribution chart, Welcast Steels ranks #597 out of 633 companies in the Steel industry, placing it in the top 94.3%.
Is Welcast Steels' ROA % too high?
Welcast Steels' current ROA % of 15.52% is 1094% above median its 10-year median of 1.30. The Steel industry median ROA % is 1.92. Welcast Steels' value of 15.52% is 708.3% above this industry median. Based on the distribution chart, Welcast Steels ranks #597 out of 633 companies in the Steel industry, which is in the bottom quartile relative to peers. Overall, Welcast Steels has a GF Score™ of 57/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Welcast Steels' ROA % compare to NUE and STLD?
According to the Steel industry distribution chart, Welcast Steels ranks #597 out of 633 companies for ROA %. This places Welcast Steels in the lower half of its industry. The industry median ROA % is 1.92. Welcast Steels' value of 15.52% is 708.3% above this benchmark. While the company's 10-year median is 1.30 vs. the industry median of 1.92, Welcast Steels 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 1.92, based on 633 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. Welcast Steels's current ROA % of 15.52% is 708.3% 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 Welcast Steels and its competitors. For the Steel industry, the median ROA % is 1.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Welcast Steels's current ROA % is 15.52%, which is 1094% above median its own 10-year median of 1.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Welcast Steels stock overvalued right now?
Based on GuruFocus' analysis, Welcast Steels (BOM:504988) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹586.81, compared to a current price of ₹711.00 — trading 21.2% above its estimated fair value. The current ROA % is 15.52%, which is 1094% above median its 10-year median of 1.30 and 708.3% above the Steel industry median of 1.92. Welcast Steels' overall GF Score™ is 57/100 with 4 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 Welcast Steels (BOM:504988), the current ROA % is 15.52% 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 Welcast Steels (BOM:504988) Overvalued in 2026?
Based on GuruFocus' analysis, Welcast Steels stock appears to be overvalued.
The current stock price of ₹711.00 is trading 21.2% above its estimated GF Value™ of ₹586.81.
GuruFocus considers Welcast Steels to be Modestly Overvalued.
Key valuation signals for BOM:504988:
ROA %: 15.52% (1094% above median its 10-year median of 1.30)
GF Value™: ₹586.81 vs. price of ₹711.00 (21.2% above fair value)
Industry Position: 708.3% above the Steel median (#597 of 633)
No single metric tells the full story. See the BOM:504988 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Welcast Steels Ltd is engaged in the manufacturing and marketing of chrome grinding media balls. The company products are used in the Cement and Mining Industry. It exports its products to other countries like the USA, U.A.E., Japan, Australia, Thailand, Sri Lanka, UK, Bangladesh, Indonesia, Oman, Qatar, Philippines, Slovakia, Hong Kong, Canada, Bulgaria, and Vietnam. The company mainly operates in only one segment namely the manufacturing of High Chrome Grinding Media Balls and generates revenue from the same.
57GF Score
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