Piramal FinanceBOM:544597 +1.93%26 ROA % is 1.81% as of Mar. 2026, which is 77% above its 10-year median of 1.02. GuruFocus rates BOM:544597 with a GF Score™ of 26/100. The stock has 4 warning signs investors should review. Among 543 Credit Services companies, Piramal Finance ranks worse than 61.14% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Piramal Finance's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹20,038 Mil.
Piramal Finance's average Total Assets over the quarter that ended in Mar. 2026 was ₹1,105,465 Mil. Therefore, Piramal Finance's annualized ROA % for the quarter that ended in Mar. 2026 was 1.81%.
The historical rank and industry rank for Piramal Finance's ROA % or its related term are showing as below:
BOM:544597'
s ROA % Range Over the Past 10 Years
Min: -1043.13 Med: 1.02 Max: 67.82
Current: 1.04
During the past 5 years, Piramal Finance's highest ROA % was 67.82%. The lowest was -1043.13%. And the median was 1.02%.
BOM:544597's ROA % is ranked worse than 61.14% of 543
companies
in the Credit Services industry
Industry Median: 1.94
vs BOM:544597: 1.04
Piramal Finance (BOM:544597) 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.
Piramal Finance ROA % Related Terms
Piramal Finance ROA % Historical Data
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The historical data trend for Piramal Finance'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 Credit Services subindustry, Piramal Finance'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.
Piramal Finance ROA % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Piramal Finance's ROA % distribution charts can be found below:
* The bar in red indicates where Piramal Finance'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.
Piramal Finance (BOM:544597) has a ROA % of 1.81% 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 Piramal Finance and its competitors. This is 77% above median its historical median of 1.02. According to the industry distribution chart, Piramal Finance ranks #332 out of 543 companies in the Credit Services industry, placing it in the top 61.1%.
Is Piramal Finance's ROA % too high?
Piramal Finance's current ROA % of 1.81% is 77% above median its 10-year median of 1.02. The Credit Services industry median ROA % is 1.94. Piramal Finance's value of 1.81% is 6.7% below this industry median. Based on the distribution chart, Piramal Finance ranks #332 out of 543 companies in the Credit Services industry, which is below the industry midpoint. Overall, Piramal Finance has a GF Score™ of 26/100, reflecting its overall financial health beyond just this single metric.
How does Piramal Finance's ROA % compare to V and MA?
According to the Credit Services industry distribution chart, Piramal Finance ranks #332 out of 543 companies for ROA %. This places Piramal Finance in the lower half of its industry. The industry median ROA % is 1.94. Piramal Finance's value of 1.81% is 6.7% below this benchmark. While the company's 10-year median is 1.02 vs. the industry median of 1.94, Piramal Finance has consistently been below 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 Credit Services company?
The median ROA % among Credit Services companies is 1.94, based on 543 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. Piramal Finance's current ROA % of 1.81% is 6.7% below 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 Piramal Finance and its competitors. For the Credit Services industry, the median ROA % is 1.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Piramal Finance's current ROA % is 1.81%, which is 77% above median its own 10-year median of 1.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Piramal Finance stock overvalued right now?
Piramal Finance (BOM:544597) has a current ROA % of 1.81%. The current ROA % is 1.81%, which is 77% above median its 10-year median of 1.02 and 6.7% below the Credit Services industry median of 1.94. Piramal Finance's overall GF Score™ is 26/100 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 Piramal Finance (BOM:544597), the current ROA % is 1.81% 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.
Piramal Finance Ltd main business is providing loans to customers for construction or purchase of residential property, loans against property, loans to real estate developers, loans to SMEs, Consumption loans, etc. Its loan products are Home Loan, Construction Loan, Renovation Loan, Extension Loan, Business Loans, Loan Against Property, Small Business Loan, Working Capital Loan, Personal Loan, Used Car Loan, Group Loan, Loan Against Securities, Loan Against Car, Insurance Services, Interest Rates & Disclosures, Wholesale Lending, Alternatives, etc. The company's business segments are Retail Lending, Wholesale Lending, Alternatives, and Life Insurance. The Company has identified only one reportable business segment & geographical segment as it deals mainly in lending business within India.
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