Corporate Merchant BankersBOM:540199 +0.76%51 ROA % is 0.85% as of Mar. 2026, which is 8400% above its 10-year median of 0.01. GuruFocus rates BOM:540199 with a GF Score™ of 51/100 and a GF Value™ of ₹17.02 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 543 Credit Services companies, Corporate Merchant Bankers ranks better than 52.85% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Corporate Merchant Bankers's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹13.26 Mil.
Corporate Merchant Bankers's average Total Assets over the quarter that ended in Mar. 2026 was ₹1,556.46 Mil. Therefore, Corporate Merchant Bankers's annualized ROA % for the quarter that ended in Mar. 2026 was 0.85%.
The historical rank and industry rank for Corporate Merchant Bankers's ROA % or its related term are showing as below:
BOM:540199'
s ROA % Range Over the Past 10 Years
Min: -2.04 Med: 0.01 Max: 3.74
Current: 2.08
During the past 13 years, Corporate Merchant Bankers's highest ROA % was 3.74%. The lowest was -2.04%. And the median was 0.01%.
BOM:540199's ROA % is ranked better than 52.85% of 543
companies
in the Credit Services industry
Industry Median: 1.94
vs BOM:540199: 2.08
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.
* 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 Credit Services subindustry, Corporate Merchant Bankers'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.
Corporate Merchant Bankers ROA % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Corporate Merchant Bankers's ROA % distribution charts can be found below:
* The bar in red indicates where Corporate Merchant Bankers'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.
Corporate Merchant Bankers (BOM:540199) has a ROA % of 0.85% 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 Corporate Merchant Bankers and its competitors. This is 8400% above median its historical median of 0.01. According to the industry distribution chart, Corporate Merchant Bankers ranks #256 out of 543 companies in the Credit Services industry, placing it in the top 47.1%.
Is Corporate Merchant Bankers' ROA % too high?
Corporate Merchant Bankers' current ROA % of 0.85% is 8400% above median its 10-year median of 0.01. The Credit Services industry median ROA % is 1.94. Corporate Merchant Bankers' value of 0.85% is 56.2% below this industry median. Based on the distribution chart, Corporate Merchant Bankers ranks #256 out of 543 companies in the Credit Services industry, which is above the industry midpoint. Overall, Corporate Merchant Bankers has a GF Score™ of 51/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Corporate Merchant Bankers' ROA % compare to V and MA?
According to the Credit Services industry distribution chart, Corporate Merchant Bankers ranks #256 out of 543 companies for ROA %. This puts Corporate Merchant Bankers in the upper half of its industry. The industry median ROA % is 1.94. Corporate Merchant Bankers' value of 0.85% is 56.2% below this benchmark. While the company's 10-year median is 0.01 vs. the industry median of 1.94, Corporate Merchant Bankers has consistently been below 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 Credit Services company?
The median ROA % among Credit Services companies is 1.94, based on 543 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. Corporate Merchant Bankers's current ROA % of 0.85% is 56.2% below 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 Corporate Merchant Bankers and its competitors. For the Credit Services industry, the median ROA % is 1.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Corporate Merchant Bankers's current ROA % is 0.85%, which is 8400% above median its own 10-year median of 0.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Corporate Merchant Bankers stock overvalued right now?
Based on GuruFocus' analysis, Corporate Merchant Bankers (BOM:540199) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹17.02, compared to a current price of ₹53.00 — trading 211.4% above its estimated fair value. The current ROA % is 0.85%, which is 8400% above median its 10-year median of 0.01 and 56.2% below the Credit Services industry median of 1.94. Corporate Merchant Bankers' overall GF Score™ is 51/100 with 2 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 Corporate Merchant Bankers (BOM:540199), the current ROA % is 0.85% 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 Corporate Merchant Bankers (BOM:540199) Overvalued in 2026?
Based on GuruFocus' analysis, Corporate Merchant Bankers stock appears to be overvalued.
The current stock price of ₹53.00 is trading 211.4% above its estimated GF Value™ of ₹17.02.
GuruFocus considers Corporate Merchant Bankers to be Significantly Overvalued.
Key valuation signals for BOM:540199:
ROA %: 0.85% (8400% above median its 10-year median of 0.01)
GF Value™: ₹17.02 vs. price of ₹53.00 (211.4% above fair value)
Industry Position: 56.2% below the Credit Services median (#256 of 543)
No single metric tells the full story. See the BOM:540199 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Corporate Merchant Bankers Ltd is a Non-Banking Financial Company. The company is engaged in providing loans and advances to various Corporates. It also provides consultancy services. The company has one business segment, which is providing financial services.
51GF Score
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