Mehul Colours (BOM:544472) ROA %: 8.59% (As of Mar. 2026) — 67% Below Median

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BOM:544472 Mehul Colours Ltd BOM:544472
21 GF Score
Price ₹50.75
! 4 Warning Signs
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What is Mehul Colours ROA %?

Mehul Colours BOM:544472 -4.25% 21 ROA % is 8.59% as of Mar. 2026, which is 67% below its 10-year median of 26.06. GuruFocus rates BOM:544472 with a GF Score™ of 21/100. The stock has 4 warning signs investors should review. Among 1,613 Chemicals companies, Mehul Colours ranks better than 95.35% on this metric.

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Mehul Colours's annualized Net Income for the quarter that ended in Mar. 2026 was ₹38.6 Mil. Mehul Colours's average Total Assets over the quarter that ended in Mar. 2026 was ₹449.4 Mil. Therefore, Mehul Colours's annualized ROA % for the quarter that ended in Mar. 2026 was 8.59%.

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

BOM:544472' s ROA % Range Over the Past 10 Years
Min: 14.4   Med: 26.06   Max: 33.53
Current: 14.4

During the past 5 years, Mehul Colours's highest ROA % was 33.53%. The lowest was 14.40%. And the median was 26.06%.

BOM:544472's ROA % is ranked better than
95.35% of 1613 companies
in the Chemicals industry
Industry Median: 3.01 vs BOM:544472: 14.40

Mehul Colours  (BOM:544472) 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
=38.602/449.351
=(Net Income / Revenue)*(Revenue / Total Assets)
=(38.602 / 323.784)*(323.784 / 449.351)
=Net Margin %*Asset Turnover
=11.92 %*0.7206
=8.59 %

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.


Mehul Colours ROA % Related Terms


Mehul Colours ROA % Historical Data

* Premium members only.

The historical data trend for Mehul Colours'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.

Mehul Colours ROA % Chart

Mehul Colours Annual Data
Trend Mar22 Mar23 Mar24 Mar25 Mar26
ROA %
15.17 28.89 26.06 33.53 16.28

Mehul Colours Semi-Annual Data
Mar22 Mar23 Mar24 Sep24 Mar25 Sep25 Mar26
ROA % Get a 7-Day Free Trial 0.00 33.33 32.96 20.71 8.59

BOM:544472 vs LIN, SHW, ECL: ROA % Comparison

For the Specialty Chemicals subindustry, Mehul Colours'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.


Mehul Colours ROA % vs Chemicals Industry

For the Chemicals industry and Basic Materials sector, Mehul Colours's ROA % distribution charts can be found below:

* The bar in red indicates where Mehul Colours's ROA % falls into.


BOM:544472
21GF Score
Mehul Colours Ltd BOM:544472
ROA % is just one metric. See GF Score™, valuation, warning signs, and more.
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Mehul Colours ROA % Calculation

Mehul Colours'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 )
=52.229/( (189.53+452.128)/ 2 )
=52.229/320.829
=16.28 %

Mehul Colours'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 )
=38.602/( (446.574+452.128)/ 2 )
=38.602/449.351
=8.59 %

* 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 8.59% mean?
Mehul Colours (BOM:544472) has a ROA % of 8.59% 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 Mehul Colours and its competitors. This is 67% below median its historical median of 26.06. Over the past decade, Mehul Colours' ROA % has ranged from 14.40 to 33.53. According to the industry distribution chart, Mehul Colours ranks #75 out of 1613 companies in the Chemicals industry, placing it in the top 4.6%.
Is Mehul Colours' ROA % too high?
Mehul Colours' current ROA % of 8.59% is 67% below median its 10-year median of 26.06. Over the past 10 years, this metric has ranged from a low of 14.40 to a high of 33.53. The Chemicals industry median ROA % is 3.01. Mehul Colours' value of 8.59% is 185.4% above this industry median. Based on the distribution chart, Mehul Colours ranks #75 out of 1613 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Mehul Colours has a GF Score™ of 21/100, reflecting its overall financial health beyond just this single metric.
How does Mehul Colours' ROA % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Mehul Colours ranks #75 out of 1613 companies for ROA %. This places Mehul Colours in the top 5% of its industry — outperforming the majority of peers. The industry median ROA % is 3.01. Mehul Colours' value of 8.59% is 185.4% above this benchmark. Historically, Mehul Colours' own ROA % has ranged from 14.40 to 33.53 over the past decade. While the company's 10-year median is 26.06 vs. the industry median of 3.01, Mehul Colours 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 3.01, based on 1,613 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. Mehul Colours's current ROA % of 8.59% is 185.4% 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 Mehul Colours and its competitors. For the Chemicals industry, the median ROA % is 3.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mehul Colours's current ROA % is 8.59%, which is 67% below median its own 10-year median of 26.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mehul Colours stock overvalued right now?
Mehul Colours (BOM:544472) has a current ROA % of 8.59%. The current ROA % is 8.59%, which is 67% below median its 10-year median of 26.06 and 185.4% above the Chemicals industry median of 3.01. Mehul Colours' overall GF Score™ is 21/100 with 4 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 Mehul Colours (BOM:544472), the current ROA % is 8.59% 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.

Mehul Colours Business Description

Address Link Road, Chincholi Bunder Road, Unit No - A 305,306, Kemp Plaza, Mind Space, Near Evershine Mall, Malad West, Mumbai, MH, IND, 400064
Mehul Colours Ltd is engaged in the manufacturing of masterbatches, which are used in the plastics industry to impart colour and enhance the functional properties of plastic products. Masterbatches are concentrated mixtures of pigments and additives that are uniformly dispersed in polymer carriers, facilitating the effective integration of colour and performance-enhancing properties into plastic products. In addition to manufacturing masterbatches, it is also engaged in the sale of pigments, which are blended by the company to create customized pigment solutions tailored to specific industry and customer requirements.
21GF Score

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