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RMC SwitchgearsBOM:540358 -3.41%72 ROA % is 1.90% as of Mar. 2026, which is 50% below its 10-year median of 3.81. GuruFocus rates BOM:540358 with a GF Score™ of 72/100 and a GF Value™ of ₹1,366.62 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 3,073 Industrial Products companies, RMC Switchgears ranks better than 75.85% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. RMC Switchgears's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹65 Mil.
RMC Switchgears's average Total Assets over the quarter that ended in Mar. 2026 was ₹3,437 Mil. Therefore, RMC Switchgears's annualized ROA % for the quarter that ended in Mar. 2026 was 1.90%.
The historical rank and industry rank for RMC Switchgears's ROA % or its related term are showing as below:
BOM:540358'
s ROA % Range Over the Past 10 Years
Min: 0.3 Med: 3.81 Max: 14.45
Current: 7.03
During the past 13 years, RMC Switchgears's highest ROA % was 14.45%. The lowest was 0.30%. And the median was 3.81%.
BOM:540358's ROA % is ranked better than 75.85% of 3073
companies
in the Industrial Products industry
Industry Median: 3.06
vs BOM:540358: 7.03
RMC Switchgears (BOM:540358) 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 two times the semi-annual (Mar. 2026) net income data. The Revenue data used here is two times the semi-annual (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.
RMC Switchgears ROA % Related Terms
RMC Switchgears ROA % Historical Data
* Premium members only.
The historical data trend for RMC Switchgears'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 Electrical Equipment & Parts subindustry, RMC Switchgears'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.
RMC Switchgears ROA % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, RMC Switchgears's ROA % distribution charts can be found below:
* The bar in red indicates where RMC Switchgears'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 two times the semi-annual (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
RMC Switchgears (BOM:540358) has a ROA % of 1.90% 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 RMC Switchgears and its competitors. This is 50% below median its historical median of 3.81. Over the past decade, RMC Switchgears' ROA % has ranged from 0.30 to 14.45. According to the industry distribution chart, RMC Switchgears ranks #742 out of 3073 companies in the Industrial Products industry, placing it in the top 24.1%.
Is RMC Switchgears' ROA % too high?
RMC Switchgears' current ROA % of 1.90% is 50% below median its 10-year median of 3.81. Over the past 10 years, this metric has ranged from a low of 0.30 to a high of 14.45. The Industrial Products industry median ROA % is 3.06. RMC Switchgears' value of 1.90% is 37.9% below this industry median. Based on the distribution chart, RMC Switchgears ranks #742 out of 3073 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, RMC Switchgears has a GF Score™ of 72/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does RMC Switchgears' ROA % compare to VRT and BE?
According to the Industrial Products industry distribution chart, RMC Switchgears ranks #742 out of 3073 companies for ROA %. This places RMC Switchgears in the top 24% of its industry — outperforming the majority of peers. The industry median ROA % is 3.06. RMC Switchgears' value of 1.90% is 37.9% below this benchmark. Historically, RMC Switchgears' own ROA % has ranged from 0.30 to 14.45 over the past decade. While the company's 10-year median is 3.81 vs. the industry median of 3.06, RMC Switchgears 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 an Industrial Products company?
The median ROA % among Industrial Products companies is 3.06, based on 3,073 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. RMC Switchgears's current ROA % of 1.90% is 37.9% 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 RMC Switchgears and its competitors. For the Industrial Products industry, the median ROA % is 3.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. RMC Switchgears's current ROA % is 1.90%, which is 50% below median its own 10-year median of 3.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is RMC Switchgears stock overvalued right now?
Based on GuruFocus' analysis, RMC Switchgears (BOM:540358) is currently considered Possible Value Trap. The stock's GF Value™ is ₹1,366.62, compared to a current price of ₹269.50 — trading 80.3% below its estimated fair value. The current ROA % is 1.90%, which is 50% below median its 10-year median of 3.81 and 37.9% below the Industrial Products industry median of 3.06. RMC Switchgears' overall GF Score™ is 72/100 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 RMC Switchgears (BOM:540358), the current ROA % is 1.90% 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 RMC Switchgears (BOM:540358) Overvalued in 2026?
Based on GuruFocus' analysis, RMC Switchgears stock appears to be undervalued.
The current stock price of ₹269.50 is trading 80.3% below its estimated GF Value™ of ₹1,366.62.
GuruFocus considers RMC Switchgears to be Possible Value Trap.
Key valuation signals for BOM:540358:
ROA %: 1.90% (50% below median its 10-year median of 3.81)
GF Value™: ₹1,366.62 vs. price of ₹269.50 (80.3% below fair value)
Industry Position: 37.9% below the Industrial Products median (#742 of 3073)
No single metric tells the full story. See the BOM:540358 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
RMC Switchgears Ltd designs and manufactures electronic energy meters, enclosures for energy metering, distribution boxes, panels, sheet moulding compounds, bulk moulding compounds, and solar power equipment, and provides turnkey contracts. The company operates in two segments: primary and secondary. The primary segment is engaged in "Switch Gear Engineering" and "Construction contracts for the power distribution/transmission sector." The secondary segment operates mainly within the geographical limits of India.
72GF Score
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