Cochin ShipyardBOM:540678 +0.30%90 ROA % is 7.61% as of Mar. 2026, which is 4% below its 10-year median of 7.92. GuruFocus rates BOM:540678 with a GF Score™ of 90/100 and a GF Value™ of ₹1,698.46 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 357 Aerospace & Defense companies, Cochin Shipyard ranks better than 68.63% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Cochin Shipyard's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹11,059 Mil.
Cochin Shipyard's average Total Assets over the quarter that ended in Mar. 2026 was ₹145,307 Mil. Therefore, Cochin Shipyard's annualized ROA % for the quarter that ended in Mar. 2026 was 7.61%.
The historical rank and industry rank for Cochin Shipyard's ROA % or its related term are showing as below:
BOM:540678'
s ROA % Range Over the Past 10 Years
Min: 3.31 Med: 7.92 Max: 10.85
Current: 5.1
During the past 13 years, Cochin Shipyard's highest ROA % was 10.85%. The lowest was 3.31%. And the median was 7.92%.
BOM:540678's ROA % is ranked better than 68.63% of 357
companies
in the Aerospace & Defense industry
Industry Median: 2.47
vs BOM:540678: 5.10
Cochin Shipyard (BOM:540678) 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.
Cochin Shipyard ROA % Related Terms
Cochin Shipyard ROA % Historical Data
* Premium members only.
The historical data trend for Cochin Shipyard'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 Aerospace & Defense subindustry, Cochin Shipyard'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.
Cochin Shipyard ROA % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Cochin Shipyard's ROA % distribution charts can be found below:
* The bar in red indicates where Cochin Shipyard'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.
Cochin Shipyard (BOM:540678) has a ROA % of 7.61% 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 Cochin Shipyard and its competitors. This is near median its historical median of 7.92. Over the past decade, Cochin Shipyard's ROA % has ranged from 3.31 to 10.85. According to the industry distribution chart, Cochin Shipyard ranks #112 out of 357 companies in the Aerospace & Defense industry, placing it in the top 31.4%.
Is Cochin Shipyard's ROA % too high?
Cochin Shipyard's current ROA % of 7.61% is near median its 10-year median of 7.92. Over the past 10 years, this metric has ranged from a low of 3.31 to a high of 10.85. The Aerospace & Defense industry median ROA % is 2.47. Cochin Shipyard's value of 7.61% is 208.1% above this industry median. Based on the distribution chart, Cochin Shipyard ranks #112 out of 357 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, Cochin Shipyard has a GF Score™ of 90/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cochin Shipyard's ROA % compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Cochin Shipyard ranks #112 out of 357 companies for ROA %. This puts Cochin Shipyard in the upper half of its industry. The industry median ROA % is 2.47. Cochin Shipyard's value of 7.61% is 208.1% above this benchmark. Historically, Cochin Shipyard's own ROA % has ranged from 3.31 to 10.85 over the past decade. While the company's 10-year median is 7.92 vs. the industry median of 2.47, Cochin Shipyard 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 Aerospace & Defense company?
The median ROA % among Aerospace & Defense companies is 2.47, based on 357 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. Cochin Shipyard's current ROA % of 7.61% is 208.1% 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 Cochin Shipyard and its competitors. For the Aerospace & Defense industry, the median ROA % is 2.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cochin Shipyard's current ROA % is 7.61%, which is near median its own 10-year median of 7.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cochin Shipyard stock overvalued right now?
Based on GuruFocus' analysis, Cochin Shipyard (BOM:540678) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹1,698.46, compared to a current price of ₹1,523.75 — trading 10.3% below its estimated fair value. The current ROA % is 7.61%, which is near median its 10-year median of 7.92 and 208.1% above the Aerospace & Defense industry median of 2.47. Cochin Shipyard's overall GF Score™ is 90/100 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 Cochin Shipyard (BOM:540678), the current ROA % is 7.61% 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 Cochin Shipyard (BOM:540678) Overvalued in 2026?
Based on GuruFocus' analysis, Cochin Shipyard stock appears to be undervalued.
The current stock price of ₹1,523.75 is trading 10.3% below its estimated GF Value™ of ₹1,698.46.
GuruFocus considers Cochin Shipyard to be Modestly Undervalued.
Key valuation signals for BOM:540678:
ROA %: 7.61% (near median its 10-year median of 7.92)
GF Value™: ₹1,698.46 vs. price of ₹1,523.75 (10.3% below fair value)
Industry Position: 208.1% above the Aerospace & Defense median (#112 of 357)
No single metric tells the full story. See the BOM:540678 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cochin Shipyard Ltd is an Indian-based company engaged in the business activities of Shipbuilding and Ship repair. The company has two operating segments, namely, Shipbuilding and Repair of Ships/Offshore Structures. It generates maximum revenue from the Shipbuilding segment. The Shipbuilding segment offers products such as Oil Tankers, Bulk Carriers, Electric Passenger Ferries, Pax Vessels, Tugs, Aircraft Carriers, Pollution Control Vessels, and many more. The Ship repair segment includes maintenance and repair of all types of vessels including Tankers, Bulk Carriers, Aircraft Carriers, Defense Vessels, and all kinds of Commercial and Specialized vessels.
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