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.
Bhatia Communications & Retail (India) ROA % Related Terms
Bhatia Communications & Retail (India) ROA % Historical 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.
For the Electronics & Computer Distribution subindustry, Bhatia Communications & Retail (India)'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.
Bhatia Communications & Retail (India) ROA % vs Hardware Industry
* 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.
Bhatia Communications & Retail (India) (BOM:540956) has a ROA % of 9.16% 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 Bhatia Communications & Retail (India) and its competitors. This is near median its historical median of 9.84. Over the past decade, Bhatia Communications & Retail (India)'s ROA % has ranged from 2.46 to 11.15. According to the industry distribution chart, Bhatia Communications & Retail (India) ranks #308 out of 2501 companies in the Hardware industry, placing it in the top 12.3%.
Is Bhatia Communications & Retail (India)'s ROA % too high?
Bhatia Communications & Retail (India)'s current ROA % of 9.16% is near median its 10-year median of 9.84. Over the past 10 years, this metric has ranged from a low of 2.46 to a high of 11.15. The Hardware industry median ROA % is 2.27. Bhatia Communications & Retail (India)'s value of 9.16% is 303.5% above this industry median. Based on the distribution chart, Bhatia Communications & Retail (India) ranks #308 out of 2501 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Bhatia Communications & Retail (India) has a GF Score™ of 91/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Bhatia Communications & Retail (India)'s ROA % compare to SNX and ARW?
According to the Hardware industry distribution chart, Bhatia Communications & Retail (India) ranks #308 out of 2501 companies for ROA %. This places Bhatia Communications & Retail (India) in the top 12% of its industry — outperforming the majority of peers. The industry median ROA % is 2.27. Bhatia Communications & Retail (India)'s value of 9.16% is 303.5% above this benchmark. Historically, Bhatia Communications & Retail (India)'s own ROA % has ranged from 2.46 to 11.15 over the past decade. While the company's 10-year median is 9.84 vs. the industry median of 2.27, Bhatia Communications & Retail (India) 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 Hardware company?
The median ROA % among Hardware companies is 2.27, based on 2,501 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. Bhatia Communications & Retail (India)'s current ROA % of 9.16% is 303.5% 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 Bhatia Communications & Retail (India) and its competitors. For the Hardware industry, the median ROA % is 2.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bhatia Communications & Retail (India)'s current ROA % is 9.16%, which is near median its own 10-year median of 9.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bhatia Communications & Retail (India) stock overvalued right now?
Based on GuruFocus' analysis, Bhatia Communications & Retail (India) (BOM:540956) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹34.90, compared to a current price of ₹25.78 — trading 26.1% below its estimated fair value. The current ROA % is 9.16%, which is near median its 10-year median of 9.84 and 303.5% above the Hardware industry median of 2.27. Bhatia Communications & Retail (India)'s overall GF Score™ is 91/100 with 1 warning sign 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 Bhatia Communications & Retail (India) (BOM:540956), the current ROA % is 9.16% 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 Bhatia Communications & Retail (India) (BOM:540956) Overvalued in 2026?
Based on GuruFocus' analysis, Bhatia Communications & Retail (India) stock appears to be undervalued.
The current stock price of ₹25.78 is trading 26.1% below its estimated GF Value™ of ₹34.90.
GuruFocus considers Bhatia Communications & Retail (India) to be Modestly Undervalued.
Key valuation signals for BOM:540956:
ROA %: 9.16% (near median its 10-year median of 9.84)
GF Value™: ₹34.90 vs. price of ₹25.78 (26.1% below fair value)
Industry Position: 303.5% above the Hardware median (#308 of 2501)
No single metric tells the full story. See the BOM:540956 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bhatia Communications & Retail (India) Business Description
Bhatia Communications & Retail (India) Ltd is the distributor of mobile handsets and accessories. The firm is engaged in the retail and wholesale distribution of mobile handsets, tablets, data cards and mobile accessories through retail and franchised stores. It is a growth-oriented company selling multi-product brands that also operates under stores and sells electronic appliances such as television, refrigerators, air conditioners, coolers, washing machines, and microwaves. Bhatia Communications markets and sells its product under the brands: Apple iPhone, Samsung, OPPO, VIVO, etc. Substantial revenue accrues from owned retail stores. It also offers technical expertise and guide to customers to buy the right product as per their needs.
91GF Score
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