Fairchem OrganicsBOM:543252 71 ROA % is 3.78% as of Mar. 2026, which is 71% below its 10-year median of 13.05. GuruFocus rates BOM:543252 with a GF Score™ of 71/100 and a GF Value™ of ₹822.67 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 1,609 Chemicals companies, Fairchem Organics ranks worse than 62.34% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Fairchem Organics's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹148 Mil.
Fairchem Organics's average Total Assets over the quarter that ended in Mar. 2026 was ₹3,910 Mil. Therefore, Fairchem Organics's annualized ROA % for the quarter that ended in Mar. 2026 was 3.78%.
The historical rank and industry rank for Fairchem Organics's ROA % or its related term are showing as below:
BOM:543252'
s ROA % Range Over the Past 10 Years
Min: 1.4 Med: 13.05 Max: 23.31
Current: 1.41
During the past 7 years, Fairchem Organics's highest ROA % was 23.31%. The lowest was 1.40%. And the median was 13.05%.
BOM:543252's ROA % is ranked worse than 62.34% of 1609
companies
in the Chemicals industry
Industry Median: 2.91
vs BOM:543252: 1.41
Fairchem Organics (BOM:543252) 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.
Fairchem Organics ROA % Related Terms
Fairchem Organics ROA % Historical Data
* Premium members only.
The historical data trend for Fairchem Organics'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 Specialty Chemicals subindustry, Fairchem Organics'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.
Fairchem Organics ROA % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Fairchem Organics's ROA % distribution charts can be found below:
* The bar in red indicates where Fairchem Organics'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.
Fairchem Organics (BOM:543252) has a ROA % of 3.78% 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 Fairchem Organics and its competitors. This is 71% below median its historical median of 13.05. Over the past decade, Fairchem Organics' ROA % has ranged from 1.40 to 23.31. According to the industry distribution chart, Fairchem Organics ranks #1003 out of 1609 companies in the Chemicals industry, placing it in the top 62.3%.
Is Fairchem Organics' ROA % too high?
Fairchem Organics' current ROA % of 3.78% is 71% below median its 10-year median of 13.05. Over the past 10 years, this metric has ranged from a low of 1.40 to a high of 23.31. The Chemicals industry median ROA % is 2.91. Fairchem Organics' value of 3.78% is 29.9% above this industry median. Based on the distribution chart, Fairchem Organics ranks #1003 out of 1609 companies in the Chemicals industry, which is below the industry midpoint. Overall, Fairchem Organics has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Fairchem Organics' ROA % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Fairchem Organics ranks #1003 out of 1609 companies for ROA %. This places Fairchem Organics in the lower half of its industry. The industry median ROA % is 2.91. Fairchem Organics' value of 3.78% is 29.9% above this benchmark. Historically, Fairchem Organics' own ROA % has ranged from 1.40 to 23.31 over the past decade. While the company's 10-year median is 13.05 vs. the industry median of 2.91, Fairchem Organics 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 Chemicals company?
The median ROA % among Chemicals companies is 2.91, based on 1,609 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. Fairchem Organics's current ROA % of 3.78% is 29.9% 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 Fairchem Organics and its competitors. For the Chemicals industry, the median ROA % is 2.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fairchem Organics's current ROA % is 3.78%, which is 71% below median its own 10-year median of 13.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fairchem Organics stock overvalued right now?
Based on GuruFocus' analysis, Fairchem Organics (BOM:543252) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹822.67, compared to a current price of ₹710.00 — trading 13.7% below its estimated fair value. The current ROA % is 3.78%, which is 71% below median its 10-year median of 13.05 and 29.9% above the Chemicals industry median of 2.91. Fairchem Organics' overall GF Score™ is 71/100 with 7 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 Fairchem Organics (BOM:543252), the current ROA % is 3.78% 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 Fairchem Organics (BOM:543252) Overvalued in 2026?
Based on GuruFocus' analysis, Fairchem Organics stock appears to be undervalued.
The current stock price of ₹710.00 is trading 13.7% below its estimated GF Value™ of ₹822.67.
GuruFocus considers Fairchem Organics to be Modestly Undervalued.
Key valuation signals for BOM:543252:
ROA %: 3.78% (71% below median its 10-year median of 13.05)
GF Value™: ₹822.67 vs. price of ₹710.00 (13.7% below fair value)
Industry Position: 29.9% above the Chemicals median (#1003 of 1609)
No single metric tells the full story. See the BOM:543252 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fairchem Organics Ltd is engaged in the business of manufacturing specialty chemicals, namely, Oleo Chemicals and Intermediate Nutraceuticals. The company operates in a business-to-business model, offering various chemical products such as dimer acid, linoleic acid, isostearic acid, stearic acid, palmitic acid, and others. In addition, it offers mixed tocopherol and sterol concentrates that are used mainly for the manufacturing of natural vitamin E. Geographically, the company derives all of its revenue from its business in India.
71GF Score
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