Elgi EquipmentsBOM:522074 -2.65%95 ROA % is 14.44% as of Mar. 2026, which is 64% above its 10-year median of 8.79. GuruFocus rates BOM:522074 with a GF Score™ of 95/100 and a GF Value™ of ₹670.48 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 3,071 Industrial Products companies, Elgi Equipments ranks better than 93.55% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Elgi Equipments's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹5,120 Mil.
Elgi Equipments's average Total Assets over the quarter that ended in Mar. 2026 was ₹35,455 Mil. Therefore, Elgi Equipments's annualized ROA % for the quarter that ended in Mar. 2026 was 14.44%.
The historical rank and industry rank for Elgi Equipments's ROA % or its related term are showing as below:
BOM:522074'
s ROA % Range Over the Past 10 Years
Min: 2.9 Med: 8.79 Max: 16.6
Current: 13.22
During the past 13 years, Elgi Equipments's highest ROA % was 16.60%. The lowest was 2.90%. And the median was 8.79%.
BOM:522074's ROA % is ranked better than 93.55% of 3071
companies
in the Industrial Products industry
Industry Median: 3.04
vs BOM:522074: 13.22
Elgi Equipments (BOM:522074) 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.
Elgi Equipments ROA % Related Terms
Elgi Equipments ROA % Historical Data
* Premium members only.
The historical data trend for Elgi Equipments'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 Specialty Industrial Machinery subindustry, Elgi Equipments'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.
Elgi Equipments ROA % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Elgi Equipments's ROA % distribution charts can be found below:
* The bar in red indicates where Elgi Equipments'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.
Elgi Equipments (BOM:522074) has a ROA % of 14.44% 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 Elgi Equipments and its competitors. This is 64% above median its historical median of 8.79. Over the past decade, Elgi Equipments' ROA % has ranged from 2.90 to 16.60. According to the industry distribution chart, Elgi Equipments ranks #198 out of 3071 companies in the Industrial Products industry, placing it in the top 6.4%.
Is Elgi Equipments' ROA % too high?
Elgi Equipments' current ROA % of 14.44% is 64% above median its 10-year median of 8.79. Over the past 10 years, this metric has ranged from a low of 2.90 to a high of 16.60. The Industrial Products industry median ROA % is 3.04. Elgi Equipments' value of 14.44% is 375% above this industry median. Based on the distribution chart, Elgi Equipments ranks #198 out of 3071 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Elgi Equipments has a GF Score™ of 95/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Elgi Equipments' ROA % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Elgi Equipments ranks #198 out of 3071 companies for ROA %. This places Elgi Equipments in the top 6% of its industry — outperforming the majority of peers. The industry median ROA % is 3.04. Elgi Equipments' value of 14.44% is 375% above this benchmark. Historically, Elgi Equipments' own ROA % has ranged from 2.90 to 16.60 over the past decade. While the company's 10-year median is 8.79 vs. the industry median of 3.04, Elgi Equipments 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 3.04, based on 3,071 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. Elgi Equipments's current ROA % of 14.44% is 375% 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 Elgi Equipments and its competitors. For the Industrial Products industry, the median ROA % is 3.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Elgi Equipments's current ROA % is 14.44%, which is 64% above median its own 10-year median of 8.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Elgi Equipments stock overvalued right now?
Based on GuruFocus' analysis, Elgi Equipments (BOM:522074) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹670.48, compared to a current price of ₹578.35 — trading 13.7% below its estimated fair value. The current ROA % is 14.44%, which is 64% above median its 10-year median of 8.79 and 375% above the Industrial Products industry median of 3.04. Elgi Equipments' overall GF Score™ is 95/100 with 3 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 Elgi Equipments (BOM:522074), the current ROA % is 14.44% 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 Elgi Equipments (BOM:522074) Overvalued in 2026?
Based on GuruFocus' analysis, Elgi Equipments stock appears to be undervalued.
The current stock price of ₹578.35 is trading 13.7% below its estimated GF Value™ of ₹670.48.
GuruFocus considers Elgi Equipments to be Modestly Undervalued.
Key valuation signals for BOM:522074:
ROA %: 14.44% (64% above median its 10-year median of 8.79)
GF Value™: ₹670.48 vs. price of ₹578.35 (13.7% below fair value)
Industry Position: 375% above the Industrial Products median (#198 of 3071)
No single metric tells the full story. See the BOM:522074 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Elgi Equipments Ltd manufactures air compressors and compressed air systems. The segment in which the group operates includes Air Compressors and Automotive Equipment. Its products include piston compressors, electric lubricated screw compressors, electric oil-free screw compressors, portable compressors, railway compressors, and air accessories. Geographically, it derives a majority of its revenue from India and also has a presence in the United States of America, Italy, Australia, and other countries. It serves the Textile; Manufacturing; Automotive; Agriculture and Construction industries.
95GF Score
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