ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. NMDC Steel's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹15,676 Mil.
NMDC Steel's average Total Assets over the quarter that ended in Mar. 2026 was ₹282,373 Mil. Therefore, NMDC Steel's annualized ROA % for the quarter that ended in Mar. 2026 was 5.55%.
The historical rank and industry rank for NMDC Steel's ROA % or its related term are showing as below:
BOM:543768'
s ROA % Range Over the Past 10 Years
Min: -92.9 Med: -28.69 Max: 0.21
Current: 0.21
During the past 9 years, NMDC Steel's highest ROA % was 0.21%. The lowest was -92.90%. And the median was -28.69%.
BOM:543768's ROA % is ranked worse than 65.04% of 635
companies
in the Steel industry
Industry Median: 1.88
vs BOM:543768: 0.21
NMDC Steel (BOM:543768) 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.
NMDC Steel ROA % Related Terms
NMDC Steel ROA % Historical Data
* Premium members only.
The historical data trend for NMDC Steel'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 Steel subindustry, NMDC Steel'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.
NMDC Steel ROA % vs Steel Industry
For the Steel industry and Basic Materials sector, NMDC Steel's ROA % distribution charts can be found below:
* The bar in red indicates where NMDC Steel'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.
NMDC Steel (BOM:543768) has a ROA % of 5.55% 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 NMDC Steel and its competitors. According to the industry distribution chart, NMDC Steel ranks #413 out of 635 companies in the Steel industry, placing it in the top 65%.
Is NMDC Steel's ROA % too high?
NMDC Steel's current ROA % is 5.55%. The Steel industry median ROA % is 1.88. NMDC Steel's value of 5.55% is 195.2% above this industry median. Based on the distribution chart, NMDC Steel ranks #413 out of 635 companies in the Steel industry, which is below the industry midpoint. Overall, NMDC Steel has a GF Score™ of 51/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does NMDC Steel's ROA % compare to NUE and STLD?
According to the Steel industry distribution chart, NMDC Steel ranks #413 out of 635 companies for ROA %. This places NMDC Steel in the lower half of its industry. The industry median ROA % is 1.88. NMDC Steel's value of 5.55% is 195.2% above this benchmark. 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 Steel company?
The median ROA % among Steel companies is 1.88, based on 635 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. NMDC Steel's current ROA % of 5.55% is 195.2% 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 NMDC Steel and its competitors. For the Steel industry, the median ROA % is 1.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NMDC Steel's current ROA % is 5.55%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NMDC Steel stock overvalued right now?
Based on GuruFocus' analysis, NMDC Steel (BOM:543768) is currently considered Possible Value Trap. The stock's GF Value™ is ₹70.64, compared to a current price of ₹43.71 — trading 38.1% below its estimated fair value. The current ROA % is 5.55% and 195.2% above the Steel industry median of 1.88. NMDC Steel's overall GF Score™ is 51/100 with 3 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 NMDC Steel (BOM:543768), the current ROA % is 5.55% 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 NMDC Steel (BOM:543768) Overvalued in 2026?
Based on GuruFocus' analysis, NMDC Steel stock appears to be undervalued.
The current stock price of ₹43.71 is trading 38.1% below its estimated GF Value™ of ₹70.64.
GuruFocus considers NMDC Steel to be Possible Value Trap.
Key valuation signals for BOM:543768:
ROA %: 5.55%
GF Value™: ₹70.64 vs. price of ₹43.71 (38.1% below fair value)
Industry Position: 195.2% above the Steel median (#413 of 635)
No single metric tells the full story. See the BOM:543768 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NMDC Steel Ltd is engaged in the manufacturing of iron and steel products. Its product portfolio comprises hot rolled coils, hot rolled sheets, and plates. The company generates maximum revenue from steel products, followed by pig iron and others. Geographically, it derives all of its revenue from India.
51GF Score
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ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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