Eicher MotorsBOM:505200 +1.21%96 ROA % is 18.90% as of Mar. 2026, which is 1% above its 10-year median of 18.71. GuruFocus rates BOM:505200 with a GF Score™ of 96/100 and a GF Value™ of ₹7,010.17 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,333 Vehicles & Parts companies, Eicher Motors ranks better than 98.2% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Eicher Motors's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹60,798 Mil.
Eicher Motors's average Total Assets over the quarter that ended in Mar. 2026 was ₹321,636 Mil. Therefore, Eicher Motors's annualized ROA % for the quarter that ended in Mar. 2026 was 18.90%.
The historical rank and industry rank for Eicher Motors's ROA % or its related term are showing as below:
BOM:505200'
s ROA % Range Over the Past 10 Years
Min: 9.97 Med: 18.71 Max: 31.42
Current: 18.74
During the past 13 years, Eicher Motors's highest ROA % was 31.42%. The lowest was 9.97%. And the median was 18.71%.
BOM:505200's ROA % is ranked better than 98.2% of 1333
companies
in the Vehicles & Parts industry
Industry Median: 2.95
vs BOM:505200: 18.74
Eicher Motors (BOM:505200) 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.
Eicher Motors ROA % Related Terms
Eicher Motors ROA % Historical Data
* Premium members only.
The historical data trend for Eicher Motors'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 Auto Manufacturers subindustry, Eicher Motors'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.
Eicher Motors ROA % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Eicher Motors's ROA % distribution charts can be found below:
* The bar in red indicates where Eicher Motors'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.
Eicher Motors (BOM:505200) has a ROA % of 18.90% 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 Eicher Motors and its competitors. This is near median its historical median of 18.71. Over the past decade, Eicher Motors' ROA % has ranged from 9.97 to 31.42. According to the industry distribution chart, Eicher Motors ranks #24 out of 1333 companies in the Vehicles & Parts industry, placing it in the top 1.8%.
Is Eicher Motors' ROA % too high?
Eicher Motors' current ROA % of 18.90% is near median its 10-year median of 18.71. Over the past 10 years, this metric has ranged from a low of 9.97 to a high of 31.42. The Vehicles & Parts industry median ROA % is 2.95. Eicher Motors' value of 18.90% is 540.7% above this industry median. Based on the distribution chart, Eicher Motors ranks #24 out of 1333 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Eicher Motors has a GF Score™ of 96/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Eicher Motors' ROA % compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Eicher Motors ranks #24 out of 1333 companies for ROA %. This places Eicher Motors in the top 2% of its industry — outperforming the majority of peers. The industry median ROA % is 2.95. Eicher Motors' value of 18.90% is 540.7% above this benchmark. Historically, Eicher Motors' own ROA % has ranged from 9.97 to 31.42 over the past decade. While the company's 10-year median is 18.71 vs. the industry median of 2.95, Eicher Motors 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 Vehicles & Parts company?
The median ROA % among Vehicles & Parts companies is 2.95, based on 1,333 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. Eicher Motors's current ROA % of 18.90% is 540.7% 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 Eicher Motors and its competitors. For the Vehicles & Parts industry, the median ROA % is 2.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Eicher Motors's current ROA % is 18.90%, which is near median its own 10-year median of 18.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Eicher Motors stock overvalued right now?
Based on GuruFocus' analysis, Eicher Motors (BOM:505200) is currently considered Fairly Valued. The stock's GF Value™ is ₹7,010.17, compared to a current price of ₹7,340.10 — trading 4.7% above its estimated fair value. The current ROA % is 18.90%, which is near median its 10-year median of 18.71 and 540.7% above the Vehicles & Parts industry median of 2.95. Eicher Motors' overall GF Score™ is 96/100 with 2 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 Eicher Motors (BOM:505200), the current ROA % is 18.90% 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 Eicher Motors (BOM:505200) Overvalued in 2026?
Based on GuruFocus' analysis, Eicher Motors stock appears to be overvalued.
The current stock price of ₹7,340.10 is trading 4.7% above its estimated GF Value™ of ₹7,010.17.
GuruFocus considers Eicher Motors to be Fairly Valued.
Key valuation signals for BOM:505200:
ROA %: 18.90% (near median its 10-year median of 18.71)
GF Value™: ₹7,010.17 vs. price of ₹7,340.10 (4.7% above fair value)
Industry Position: 540.7% above the Vehicles & Parts median (#24 of 1333)
No single metric tells the full story. See the BOM:505200 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Eicher Motors Ltd is an Indian automobile manufacturer and is also engaged in the retail of related components and accessories. The company manufactures two-wheeler motorcycles and commercial vehicles. The Motorcycles division, which derives its key revenue, produces motorcycles through the Royal Enfield brand. The Commercial Vehicles division, through a joint venture with Volvo, produces trucks and buses for sale in India and other developing markets. The company derives the vast majority of its revenue within India and also has a presence in overseas markets.
96GF Score
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