Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Kennametal IndiaBOM:505890 -0.20%90 ROA % is 19.96% as of Mar. 2026, which is 96% above its 10-year median of 10.19. GuruFocus rates BOM:505890 with a GF Score™ of 90/100 and a GF Value™ of ₹2,873.59 (Fairly Valued). The stock has 1 warning sign investors should review. Among 3,078 Industrial Products companies, Kennametal India ranks better than 94.28% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Kennametal India's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹2,056 Mil.
Kennametal India's average Total Assets over the quarter that ended in Mar. 2026 was ₹10,303 Mil. Therefore, Kennametal India's annualized ROA % for the quarter that ended in Mar. 2026 was 19.96%.
The historical rank and industry rank for Kennametal India's ROA % or its related term are showing as below:
BOM:505890'
s ROA % Range Over the Past 10 Years
Min: 4.22 Med: 10.19 Max: 14.2
Current: 13.96
During the past 13 years, Kennametal India's highest ROA % was 14.20%. The lowest was 4.22%. And the median was 10.19%.
BOM:505890's ROA % is ranked better than 94.28% of 3078
companies
in the Industrial Products industry
Industry Median: 3.065
vs BOM:505890: 13.96
Kennametal India (BOM:505890) 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.
Kennametal India ROA % Related Terms
Kennametal India ROA % Historical Data
* Premium members only.
The historical data trend for Kennametal India'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 Tools & Accessories subindustry, Kennametal India'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.
Kennametal India ROA % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Kennametal India's ROA % distribution charts can be found below:
* The bar in red indicates where Kennametal India'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.
Kennametal India (BOM:505890) has a ROA % of 19.96% 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 Kennametal India and its competitors. This is 96% above median its historical median of 10.19. Over the past decade, Kennametal India's ROA % has ranged from 4.22 to 14.20. According to the industry distribution chart, Kennametal India ranks #176 out of 3078 companies in the Industrial Products industry, placing it in the top 5.7%.
Is Kennametal India's ROA % too high?
Kennametal India's current ROA % of 19.96% is 96% above median its 10-year median of 10.19. Over the past 10 years, this metric has ranged from a low of 4.22 to a high of 14.20. The Industrial Products industry median ROA % is 3.07. Kennametal India's value of 19.96% is 551.2% above this industry median. Based on the distribution chart, Kennametal India ranks #176 out of 3078 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Kennametal India has a GF Score™ of 90/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Kennametal India's ROA % compare to SNA and RBC?
According to the Industrial Products industry distribution chart, Kennametal India ranks #176 out of 3078 companies for ROA %. This places Kennametal India in the top 6% of its industry — outperforming the majority of peers. The industry median ROA % is 3.07. Kennametal India's value of 19.96% is 551.2% above this benchmark. Historically, Kennametal India's own ROA % has ranged from 4.22 to 14.20 over the past decade. While the company's 10-year median is 10.19 vs. the industry median of 3.07, Kennametal India 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 Industrial Products company?
The median ROA % among Industrial Products companies is 3.07, based on 3,078 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. Kennametal India's current ROA % of 19.96% is 551.2% 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 Kennametal India and its competitors. For the Industrial Products industry, the median ROA % is 3.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kennametal India's current ROA % is 19.96%, which is 96% above median its own 10-year median of 10.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kennametal India stock overvalued right now?
Based on GuruFocus' analysis, Kennametal India (BOM:505890) is currently considered Fairly Valued. The stock's GF Value™ is ₹2,873.59, compared to a current price of ₹2,880.10 — trading 0.2% above its estimated fair value. The current ROA % is 19.96%, which is 96% above median its 10-year median of 10.19 and 551.2% above the Industrial Products industry median of 3.07. Kennametal India's overall GF Score™ is 90/100 with 1 warning sign 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 Kennametal India (BOM:505890), the current ROA % is 19.96% 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 Kennametal India (BOM:505890) Overvalued in 2026?
Based on GuruFocus' analysis, Kennametal India stock appears to be overvalued.
The current stock price of ₹2,880.10 is trading 0.2% above its estimated GF Value™ of ₹2,873.59.
GuruFocus considers Kennametal India to be Fairly Valued.
Key valuation signals for BOM:505890:
ROA %: 19.96% (96% above median its 10-year median of 10.19)
GF Value™: ₹2,873.59 vs. price of ₹2,880.10 (0.2% above fair value)
Industry Position: 551.2% above the Industrial Products median (#176 of 3078)
No single metric tells the full story. See the BOM:505890 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kennametal India Ltd is engaged in the manufacturing and trading of hard metal products and machine tools, also known as machining solutions, serving both domestic and international markets. It operates through two main segments, the Machining Solutions Group and Hard Metal Products. The Machining Solutions Group's sales include machines, fixtures, spare parts, and after-sales services. The Hard Metal Products segment is the key revenue driver, offering metal cutting tools, tooling systems, and wear-resistant components for various industries such as automotive, aerospace, energy, and engineering. The company's operations are mainly based in India, with a presence in Germany, the USA, and China, and the majority of its revenue comes from India.
90GF Score
Get the complete analysis for BOM:505890
ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
BOM:505890 has been successfully added to your 
