Smart FinsecBOM:539494 +1.00%75 ROA % is 4.02% as of Mar. 2026, which is 50% below its 10-year median of 8.03. GuruFocus rates BOM:539494 with a GF Score™ of 75/100 and a GF Value™ of ₹6.81 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 815 Capital Markets companies, Smart Finsec ranks better than 77.55% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Smart Finsec's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹6.76 Mil.
Smart Finsec's average Total Assets over the quarter that ended in Mar. 2026 was ₹168.14 Mil. Therefore, Smart Finsec's annualized ROA % for the quarter that ended in Mar. 2026 was 4.02%.
The historical rank and industry rank for Smart Finsec's ROA % or its related term are showing as below:
BOM:539494'
s ROA % Range Over the Past 10 Years
Min: 2.8 Med: 8.03 Max: 23.21
Current: 5.94
During the past 12 years, Smart Finsec's highest ROA % was 23.21%. The lowest was 2.80%. And the median was 8.03%.
BOM:539494's ROA % is ranked better than 77.55% of 815
companies
in the Capital Markets industry
Industry Median: 1.51
vs BOM:539494: 5.94
Smart Finsec (BOM:539494) 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.
Smart Finsec ROA % Related Terms
Smart Finsec ROA % Historical Data
* Premium members only.
The historical data trend for Smart Finsec'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 Capital Markets subindustry, Smart Finsec'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.
Smart Finsec ROA % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Smart Finsec's ROA % distribution charts can be found below:
* The bar in red indicates where Smart Finsec'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.
Smart Finsec (BOM:539494) has a ROA % of 4.02% 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 Smart Finsec and its competitors. This is 50% below median its historical median of 8.03. Over the past decade, Smart Finsec's ROA % has ranged from 2.80 to 23.21. According to the industry distribution chart, Smart Finsec ranks #183 out of 815 companies in the Capital Markets industry, placing it in the top 22.5%.
Is Smart Finsec's ROA % too high?
Smart Finsec's current ROA % of 4.02% is 50% below median its 10-year median of 8.03. Over the past 10 years, this metric has ranged from a low of 2.80 to a high of 23.21. The Capital Markets industry median ROA % is 1.51. Smart Finsec's value of 4.02% is 166.2% above this industry median. Based on the distribution chart, Smart Finsec ranks #183 out of 815 companies in the Capital Markets industry, which is in the top quartile — a strong position relative to peers. Overall, Smart Finsec has a GF Score™ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Smart Finsec's ROA % compare to MS and GS?
According to the Capital Markets industry distribution chart, Smart Finsec ranks #183 out of 815 companies for ROA %. This places Smart Finsec in the top 23% of its industry — outperforming the majority of peers. The industry median ROA % is 1.51. Smart Finsec's value of 4.02% is 166.2% above this benchmark. Historically, Smart Finsec's own ROA % has ranged from 2.80 to 23.21 over the past decade. While the company's 10-year median is 8.03 vs. the industry median of 1.51, Smart Finsec 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 Capital Markets company?
The median ROA % among Capital Markets companies is 1.51, based on 815 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. Smart Finsec's current ROA % of 4.02% is 166.2% 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 Smart Finsec and its competitors. For the Capital Markets industry, the median ROA % is 1.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Smart Finsec's current ROA % is 4.02%, which is 50% below median its own 10-year median of 8.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Smart Finsec stock overvalued right now?
Based on GuruFocus' analysis, Smart Finsec (BOM:539494) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹6.81, compared to a current price of ₹8.12 — trading 19.2% above its estimated fair value. The current ROA % is 4.02%, which is 50% below median its 10-year median of 8.03 and 166.2% above the Capital Markets industry median of 1.51. Smart Finsec's overall GF Score™ is 75/100 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 Smart Finsec (BOM:539494), the current ROA % is 4.02% 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 Smart Finsec (BOM:539494) Overvalued in 2026?
Based on GuruFocus' analysis, Smart Finsec stock appears to be overvalued.
The current stock price of ₹8.12 is trading 19.2% above its estimated GF Value™ of ₹6.81.
GuruFocus considers Smart Finsec to be Modestly Overvalued.
Key valuation signals for BOM:539494:
ROA %: 4.02% (50% below median its 10-year median of 8.03)
GF Value™: ₹6.81 vs. price of ₹8.12 (19.2% above fair value)
Industry Position: 166.2% above the Capital Markets median (#183 of 815)
No single metric tells the full story. See the BOM:539494 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Smart Finsec Ltd is mainly engaged in the business of lending small loans and investments in stocks, securities and bonds. The Company is a non-deposit taking Non-Banking Finance Company (NBFC) and registered with Reserve Bank of India.
75GF Score
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