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Gautam GemsBOM:540936 -0.33%66 ROA % is 2.19% as of Mar. 2026, which is 143% above its 10-year median of 0.90. GuruFocus rates BOM:540936 with a GF Score™ of 66/100 and a GF Value™ of ₹5.50 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 1,134 Retail - Cyclical companies, Gautam Gems ranks worse than 63.84% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Gautam Gems's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹16.3 Mil.
Gautam Gems's average Total Assets over the quarter that ended in Mar. 2026 was ₹742.5 Mil. Therefore, Gautam Gems's annualized ROA % for the quarter that ended in Mar. 2026 was 2.19%.
The historical rank and industry rank for Gautam Gems's ROA % or its related term are showing as below:
BOM:540936'
s ROA % Range Over the Past 10 Years
Min: 0.02 Med: 0.9 Max: 3.84
Current: 0.95
During the past 13 years, Gautam Gems's highest ROA % was 3.84%. The lowest was 0.02%. And the median was 0.90%.
BOM:540936's ROA % is ranked worse than 63.84% of 1134
companies
in the Retail - Cyclical industry
Industry Median: 2.73
vs BOM:540936: 0.95
Gautam Gems (BOM:540936) 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.
Gautam Gems ROA % Related Terms
Gautam Gems ROA % Historical Data
* Premium members only.
The historical data trend for Gautam Gems'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 Luxury Goods subindustry, Gautam Gems'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.
Gautam Gems ROA % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Gautam Gems's ROA % distribution charts can be found below:
* The bar in red indicates where Gautam Gems'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.
Gautam Gems (BOM:540936) has a ROA % of 2.19% 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 Gautam Gems and its competitors. This is 143% above median its historical median of 0.90. Over the past decade, Gautam Gems' ROA % has ranged from 0.02 to 3.84. According to the industry distribution chart, Gautam Gems ranks #724 out of 1134 companies in the Retail - Cyclical industry, placing it in the top 63.8%.
Is Gautam Gems' ROA % too high?
Gautam Gems' current ROA % of 2.19% is 143% above median its 10-year median of 0.90. Over the past 10 years, this metric has ranged from a low of 0.02 to a high of 3.84. The Retail - Cyclical industry median ROA % is 2.73. Gautam Gems' value of 2.19% is 19.8% below this industry median. Based on the distribution chart, Gautam Gems ranks #724 out of 1134 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Gautam Gems has a GF Score™ of 66/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Gautam Gems' ROA % compare to TPR?
According to the Retail - Cyclical industry distribution chart, Gautam Gems ranks #724 out of 1134 companies for ROA %. This places Gautam Gems in the lower half of its industry. The industry median ROA % is 2.73. Gautam Gems' value of 2.19% is 19.8% below this benchmark. Historically, Gautam Gems' own ROA % has ranged from 0.02 to 3.84 over the past decade. While the company's 10-year median is 0.90 vs. the industry median of 2.73, Gautam Gems 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 Retail - Cyclical company?
The median ROA % among Retail - Cyclical companies is 2.73, based on 1,134 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. Gautam Gems's current ROA % of 2.19% is 19.8% 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 Gautam Gems and its competitors. For the Retail - Cyclical industry, the median ROA % is 2.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gautam Gems's current ROA % is 2.19%, which is 143% above median its own 10-year median of 0.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gautam Gems stock overvalued right now?
Based on GuruFocus' analysis, Gautam Gems (BOM:540936) is currently considered Possible Value Trap. The stock's GF Value™ is ₹5.50, compared to a current price of ₹3.05 — trading 44.5% below its estimated fair value. The current ROA % is 2.19%, which is 143% above median its 10-year median of 0.90 and 19.8% below the Retail - Cyclical industry median of 2.73. Gautam Gems' overall GF Score™ is 66/100 with 5 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 Gautam Gems (BOM:540936), the current ROA % is 2.19% 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 Gautam Gems (BOM:540936) Overvalued in 2026?
Based on GuruFocus' analysis, Gautam Gems stock appears to be undervalued.
The current stock price of ₹3.05 is trading 44.5% below its estimated GF Value™ of ₹5.50.
GuruFocus considers Gautam Gems to be Possible Value Trap.
Key valuation signals for BOM:540936:
ROA %: 2.19% (143% above median its 10-year median of 0.90)
GF Value™: ₹5.50 vs. price of ₹3.05 (44.5% below fair value)
Industry Position: 19.8% below the Retail - Cyclical median (#724 of 1134)
No single metric tells the full story. See the BOM:540936 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gautam Gems Ltd is an India-based company engaged in the trading of rough and polished diamonds. It offers a broad and diverse range of diamonds in various shapes, cuts, sizes, and colors, ranging from 0.18 carats to over 15 carats, with grading precision tailored to client specifications. The company's operation spans the full lifecycle of the diamond supply chain, from the procurement of rough diamonds to the processing, grading, and sale of finished polished stones. Its client portfolio includes wholesalers, manufacturers, and design studios located globally. Operations are conducted through both owned and contract-based units. Additionally, the company also offers gold jewelry.
66GF Score
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