Desco Infratech (BOM:544387) ROA %: 22.02% (As of Mar. 2026) — 42% Above Median

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BOM:544387 Desco Infratech Ltd BOM:544387
18 GF Score
Price ₹176.35
! 3 Warning Signs
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What is Desco Infratech ROA %?

Desco Infratech BOM:544387 -0.56% 18 ROA % is 22.02% as of Mar. 2026, which is 42% above its 10-year median of 15.54. GuruFocus rates BOM:544387 with a GF Score™ of 18/100. The stock has 3 warning signs investors should review. Among 1,788 Construction companies, Desco Infratech ranks better than 96.98% on this metric.

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Desco Infratech's annualized Net Income for the quarter that ended in Mar. 2026 was ₹204 Mil. Desco Infratech's average Total Assets over the quarter that ended in Mar. 2026 was ₹925 Mil. Therefore, Desco Infratech's annualized ROA % for the quarter that ended in Mar. 2026 was 22.02%.

The historical rank and industry rank for Desco Infratech's ROA % or its related term are showing as below:

BOM:544387' s ROA % Range Over the Past 10 Years
Min: 7.04   Med: 15.54   Max: 38.06
Current: 17.68

During the past 5 years, Desco Infratech's highest ROA % was 38.06%. The lowest was 7.04%. And the median was 15.54%.

BOM:544387's ROA % is ranked better than
96.98% of 1788 companies
in the Construction industry
Industry Median: 2.87 vs BOM:544387: 17.68

Desco Infratech  (BOM:544387) 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 bank’s 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:

ROA %(Q: Mar. 2026 )
=Net Income/Total Assets
=203.634/924.9415
=(Net Income / Revenue)*(Revenue / Total Assets)
=(203.634 / 1531.46)*(1531.46 / 924.9415)
=Net Margin %*Asset Turnover
=13.3 %*1.6557
=22.02 %

Note: The Net Income data used here is two times the semi-annual (Mar. 2026) net income data. The Revenue data used here is two times the semi-annual (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.


Desco Infratech ROA % Related Terms


Desco Infratech ROA % Historical Data

* Premium members only.

The historical data trend for Desco Infratech'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.

Desco Infratech ROA % Chart

Desco Infratech Annual Data
Trend Mar22 Mar23 Mar24 Mar25 Mar26
ROA %
7.04 7.58 15.56 38.06 15.54

Desco Infratech Semi-Annual Data
Mar22 Mar23 Mar24 Sep24 Mar25 Sep25 Mar26
ROA % Get a 7-Day Free Trial 0.00 21.69 32.16 15.47 22.02

BOM:544387 vs PWR, FIX, EME: ROA % Comparison

For the Engineering & Construction subindustry, Desco Infratech'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.


Desco Infratech ROA % vs Construction Industry

For the Construction industry and Industrials sector, Desco Infratech's ROA % distribution charts can be found below:

* The bar in red indicates where Desco Infratech's ROA % falls into.


BOM:544387
18GF Score
Desco Infratech Ltd BOM:544387
ROA % is just one metric. See GF Score™, valuation, warning signs, and more.
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Desco Infratech ROA % Calculation

Desco Infratech's annualized ROA % for the fiscal year that ended in Mar. 2026 is calculated as:

ROA %=Net Income (A: Mar. 2026 )/( (Total Assets (A: Mar. 2025 )+Total Assets (A: Mar. 2026 ))/ count )
=163.531/( (0+1052.068)/ 1 )
=163.531/1052.068
=15.54 %

Desco Infratech's annualized ROA % for the quarter that ended in Mar. 2026 is calculated as:

ROA %=Net Income (Q: Mar. 2026 )/( (Total Assets (Q: Sep. 2025 )+Total Assets (Q: Mar. 2026 ))/ count )
=203.634/( (797.815+1052.068)/ 2 )
=203.634/924.9415
=22.02 %

* 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 two times the semi-annual (Mar. 2026) net income data. ROA % is displayed in the 30-year financial page.

Frequently Asked Questions Learn more about ROA % →
What does a ROA % of 22.02% mean?
Desco Infratech (BOM:544387) has a ROA % of 22.02% 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 Desco Infratech and its competitors. This is 42% above median its historical median of 15.54. Over the past decade, Desco Infratech's ROA % has ranged from 7.04 to 38.06. According to the industry distribution chart, Desco Infratech ranks #54 out of 1788 companies in the Construction industry, placing it in the top 3%.
Is Desco Infratech's ROA % too high?
Desco Infratech's current ROA % of 22.02% is 42% above median its 10-year median of 15.54. Over the past 10 years, this metric has ranged from a low of 7.04 to a high of 38.06. The Construction industry median ROA % is 2.87. Desco Infratech's value of 22.02% is 667.2% above this industry median. Based on the distribution chart, Desco Infratech ranks #54 out of 1788 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Desco Infratech has a GF Score™ of 18/100, reflecting its overall financial health beyond just this single metric.
How does Desco Infratech's ROA % compare to PWR and FIX?
According to the Construction industry distribution chart, Desco Infratech ranks #54 out of 1788 companies for ROA %. This places Desco Infratech in the top 3% of its industry — outperforming the majority of peers. The industry median ROA % is 2.87. Desco Infratech's value of 22.02% is 667.2% above this benchmark. Historically, Desco Infratech's own ROA % has ranged from 7.04 to 38.06 over the past decade. While the company's 10-year median is 15.54 vs. the industry median of 2.87, Desco Infratech 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 Construction company?
The median ROA % among Construction companies is 2.87, based on 1,788 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. Desco Infratech's current ROA % of 22.02% is 667.2% 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 Desco Infratech and its competitors. For the Construction industry, the median ROA % is 2.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Desco Infratech's current ROA % is 22.02%, which is 42% above median its own 10-year median of 15.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Desco Infratech stock overvalued right now?
Desco Infratech (BOM:544387) has a current ROA % of 22.02%. The current ROA % is 22.02%, which is 42% above median its 10-year median of 15.54 and 667.2% above the Construction industry median of 2.87. Desco Infratech's overall GF Score™ is 18/100 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 Desco Infratech (BOM:544387), the current ROA % is 22.02% 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.

Desco Infratech Business Description

Address Dumas Road, A-703, Swastik Universal, Next to Valentine Cinema, Umra, Surat, GJ, IND, 395007
Desco Infratech Ltd is engaged in providing infrastructure and maintenance services to city gas distribution divisions in India. The company engages in activities such as pipeline laying, installation, testing, erection and commissioning for Piped Natural Gas (PNG) utilized by both domestic and commercial users. Its Operation and Maintenance services (O&M Services) encompass both underground and above-ground gas pipeline work for carbon steel and MDPE pipelines. As part of its O&M Services, the company conducts lock pressure and leak detection tests on MDPE pipelines to identify leaks and prevent natural gas losses and potential accidents resulting from these leaks.
18GF 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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