ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Southern Magnesium & Chemicals's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹2.35 Mil.
Southern Magnesium & Chemicals's average Total Assets over the quarter that ended in Mar. 2026 was ₹180.01 Mil. Therefore, Southern Magnesium & Chemicals's annualized ROA % for the quarter that ended in Mar. 2026 was 1.30%.
The historical rank and industry rank for Southern Magnesium & Chemicals's ROA % or its related term are showing as below:
BOM:513498'
s ROA % Range Over the Past 10 Years
Min: -22.35 Med: 14.62 Max: 59.08
Current: 0.68
During the past 13 years, Southern Magnesium & Chemicals's highest ROA % was 59.08%. The lowest was -22.35%. And the median was 14.62%.
BOM:513498's ROA % is ranked better than 76.55% of 2657
companies
in the Metals & Mining industry
Industry Median: -16.97
vs BOM:513498: 0.68
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.
Southern Magnesium & Chemicals ROA % Related Terms
Southern Magnesium & Chemicals 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 Other Industrial Metals & Mining subindustry, Southern Magnesium & Chemicals'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.
Southern Magnesium & Chemicals ROA % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Southern Magnesium & Chemicals's ROA % distribution charts can be found below:
* The bar in red indicates where Southern Magnesium & Chemicals'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.
Southern Magnesium & Chemicals (BOM:513498) has a ROA % of 1.30% 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 Southern Magnesium & Chemicals and its competitors. This is 91% below median its historical median of 14.62. According to the industry distribution chart, Southern Magnesium & Chemicals ranks #623 out of 2657 companies in the Metals & Mining industry, placing it in the top 23.4%.
Is Southern Magnesium & Chemicals' ROA % too high?
Southern Magnesium & Chemicals' current ROA % of 1.30% is 91% below median its 10-year median of 14.62. Based on the distribution chart, Southern Magnesium & Chemicals ranks #623 out of 2657 companies in the Metals & Mining industry, which is in the top quartile — a strong position relative to peers. Overall, Southern Magnesium & Chemicals has a GF Score™ of 76/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Southern Magnesium & Chemicals' ROA % compare to competitors?
According to the Metals & Mining industry distribution chart, Southern Magnesium & Chemicals ranks #623 out of 2657 companies for ROA %. This places Southern Magnesium & Chemicals in the top 23% of its industry — outperforming the majority of peers. 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 Metals & Mining company?
A good ROA % depends on the Metals & Mining industry context. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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 Southern Magnesium & Chemicals and its competitors. Southern Magnesium & Chemicals's current ROA % is 1.30%, which is 91% below median its own 10-year median of 14.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Southern Magnesium & Chemicals stock overvalued right now?
Based on GuruFocus' analysis, Southern Magnesium & Chemicals (BOM:513498) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹65.46, compared to a current price of ₹75.10 — trading 14.7% above its estimated fair value. The current ROA % is 1.30%, which is 91% below median its 10-year median of 14.62. Southern Magnesium & Chemicals' overall GF Score™ is 76/100 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 Southern Magnesium & Chemicals (BOM:513498), the current ROA % is 1.30% 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 Southern Magnesium & Chemicals (BOM:513498) Overvalued in 2026?
Based on GuruFocus' analysis, Southern Magnesium & Chemicals stock appears to be overvalued.
The current stock price of ₹75.10 is trading 14.7% above its estimated GF Value™ of ₹65.46.
GuruFocus considers Southern Magnesium & Chemicals to be Modestly Overvalued.
Key valuation signals for BOM:513498:
ROA %: 1.30% (91% below median its 10-year median of 14.62)
GF Value™: ₹65.46 vs. price of ₹75.10 (14.7% above fair value)
No single metric tells the full story. See the BOM:513498 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Southern Magnesium & Chemicals Business Description
Southern Magnesium & Chemicals Ltd is an Indian company engaged in the business of magnesium metal and related goods. The company also produces Magnesium alloy, Turnings, Granules, Powders, and extrusion.
76GF Score
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