Bharat GearsBOM:505688 +0.15%67 ROA % is 5.06% as of Mar. 2026, which is 264% above its 10-year median of 1.39. GuruFocus rates BOM:505688 with a GF Score™ of 67/100 and a GF Value™ of ₹126.65 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,333 Vehicles & Parts companies, Bharat Gears ranks better than 60.02% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Bharat Gears's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹203 Mil.
Bharat Gears's average Total Assets over the quarter that ended in Mar. 2026 was ₹4,008 Mil. Therefore, Bharat Gears's annualized ROA % for the quarter that ended in Mar. 2026 was 5.06%.
The historical rank and industry rank for Bharat Gears's ROA % or its related term are showing as below:
BOM:505688'
s ROA % Range Over the Past 10 Years
Min: -4.73 Med: 1.39 Max: 6.57
Current: 4.23
During the past 13 years, Bharat Gears's highest ROA % was 6.57%. The lowest was -4.73%. And the median was 1.39%.
BOM:505688's ROA % is ranked better than 60.02% of 1333
companies
in the Vehicles & Parts industry
Industry Median: 2.95
vs BOM:505688: 4.23
Bharat Gears (BOM:505688) 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.
Bharat Gears ROA % Related Terms
Bharat Gears ROA % Historical Data
* Premium members only.
The historical data trend for Bharat Gears'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 Parts subindustry, Bharat Gears'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.
Bharat Gears ROA % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Bharat Gears's ROA % distribution charts can be found below:
* The bar in red indicates where Bharat Gears'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.
Bharat Gears (BOM:505688) has a ROA % of 5.06% 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 Bharat Gears and its competitors. This is 264% above median its historical median of 1.39. According to the industry distribution chart, Bharat Gears ranks #533 out of 1333 companies in the Vehicles & Parts industry, placing it in the top 40%.
Is Bharat Gears' ROA % too high?
Bharat Gears' current ROA % of 5.06% is 264% above median its 10-year median of 1.39. The Vehicles & Parts industry median ROA % is 2.95. Bharat Gears' value of 5.06% is 71.5% above this industry median. Based on the distribution chart, Bharat Gears ranks #533 out of 1333 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Bharat Gears has a GF Score™ of 67/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Bharat Gears' ROA % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Bharat Gears ranks #533 out of 1333 companies for ROA %. This puts Bharat Gears in the upper half of its industry. The industry median ROA % is 2.95. Bharat Gears' value of 5.06% is 71.5% above this benchmark. While the company's 10-year median is 1.39 vs. the industry median of 2.95, Bharat Gears 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. Bharat Gears's current ROA % of 5.06% is 71.5% 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 Bharat Gears 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. Bharat Gears's current ROA % is 5.06%, which is 264% above median its own 10-year median of 1.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bharat Gears stock overvalued right now?
Based on GuruFocus' analysis, Bharat Gears (BOM:505688) is currently considered Fairly Valued. The stock's GF Value™ is ₹126.65, compared to a current price of ₹133.35 — trading 5.3% above its estimated fair value. The current ROA % is 5.06%, which is 264% above median its 10-year median of 1.39 and 71.5% above the Vehicles & Parts industry median of 2.95. Bharat Gears' overall GF Score™ is 67/100 with 5 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 Bharat Gears (BOM:505688), the current ROA % is 5.06% 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 Bharat Gears (BOM:505688) Overvalued in 2026?
Based on GuruFocus' analysis, Bharat Gears stock appears to be overvalued.
The current stock price of ₹133.35 is trading 5.3% above its estimated GF Value™ of ₹126.65.
GuruFocus considers Bharat Gears to be Fairly Valued.
Key valuation signals for BOM:505688:
ROA %: 5.06% (264% above median its 10-year median of 1.39)
GF Value™: ₹126.65 vs. price of ₹133.35 (5.3% above fair value)
Industry Position: 71.5% above the Vehicles & Parts median (#533 of 1333)
No single metric tells the full story. See the BOM:505688 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bharat Gears Ltd is engaged in the automotive gears business. The company offers a wide range of gear products such as ring gears and pinions, transmission gears and shafts, differential gears, gearboxes, and heat treatment furnaces. The company caters to the commercial vehicle, agricultural machinery, construction equipment segments, and others. The company has a presence in India, and USA, Mexico, Spain, and Other countries.
67GF Score
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