ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. AAVAS Financiers's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹7,267 Mil.
AAVAS Financiers's average Total Assets over the quarter that ended in Mar. 2026 was ₹212,125 Mil. Therefore, AAVAS Financiers's annualized ROA % for the quarter that ended in Mar. 2026 was 3.43%.
The historical rank and industry rank for AAVAS Financiers's ROA % or its related term are showing as below:
NSE:AAVAS'
s ROA % Range Over the Past 10 Years
Min: 2.67 Med: 3.39 Max: 3.75
Current: 3.31
During the past 13 years, AAVAS Financiers's highest ROA % was 3.75%. The lowest was 2.67%. And the median was 3.39%.
NSE:AAVAS's ROA % is ranked better than 95.82% of 1532
companies
in the Banks industry
Industry Median: 0.98
vs NSE:AAVAS: 3.31
AAVAS Financiers (NSE:AAVAS) 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.
AAVAS Financiers ROA % Related Terms
AAVAS Financiers ROA % Historical Data
* Premium members only.
The historical data trend for AAVAS Financiers'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 Mortgage Finance subindustry, AAVAS Financiers'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.
AAVAS Financiers ROA % vs Banks Industry
For the Banks industry and Financial Services sector, AAVAS Financiers's ROA % distribution charts can be found below:
* The bar in red indicates where AAVAS Financiers'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.
AAVAS Financiers (NSE:AAVAS) has a ROA % of 3.43% 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 AAVAS Financiers and its competitors. This is near median its historical median of 3.39. Over the past decade, AAVAS Financiers' ROA % has ranged from 2.67 to 3.75. According to the industry distribution chart, AAVAS Financiers ranks #64 out of 1532 companies in the Banks industry, placing it in the top 4.2%.
Is AAVAS Financiers' ROA % too high?
AAVAS Financiers' current ROA % of 3.43% is near median its 10-year median of 3.39. Over the past 10 years, this metric has ranged from a low of 2.67 to a high of 3.75. The Banks industry median ROA % is 0.98. AAVAS Financiers' value of 3.43% is 250% above this industry median. Based on the distribution chart, AAVAS Financiers ranks #64 out of 1532 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, AAVAS Financiers has a GF Score™ of 83/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does AAVAS Financiers' ROA % compare to RKT and FNMA?
According to the Banks industry distribution chart, AAVAS Financiers ranks #64 out of 1532 companies for ROA %. This places AAVAS Financiers in the top 4% of its industry — outperforming the majority of peers. The industry median ROA % is 0.98. AAVAS Financiers' value of 3.43% is 250% above this benchmark. Historically, AAVAS Financiers' own ROA % has ranged from 2.67 to 3.75 over the past decade. While the company's 10-year median is 3.39 vs. the industry median of 0.98, AAVAS Financiers 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 Banks company?
The median ROA % among Banks companies is 0.98, based on 1,532 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. AAVAS Financiers's current ROA % of 3.43% is 250% 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 AAVAS Financiers and its competitors. For the Banks industry, the median ROA % is 0.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AAVAS Financiers's current ROA % is 3.43%, which is near median its own 10-year median of 3.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AAVAS Financiers stock overvalued right now?
Based on GuruFocus' analysis, AAVAS Financiers (NSE:AAVAS) is currently considered Possible Value Trap. The stock's GF Value™ is ₹2,164.32, compared to a current price of ₹1,489.90 — trading 31.2% below its estimated fair value. The current ROA % is 3.43%, which is near median its 10-year median of 3.39 and 250% above the Banks industry median of 0.98. AAVAS Financiers' overall GF Score™ is 83/100 with 5 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 AAVAS Financiers (NSE:AAVAS), the current ROA % is 3.43% 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 AAVAS Financiers (NSE:AAVAS) Overvalued in 2026?
Based on GuruFocus' analysis, AAVAS Financiers stock appears to be undervalued.
The current stock price of ₹1,489.90 is trading 31.2% below its estimated GF Value™ of ₹2,164.32.
GuruFocus considers AAVAS Financiers to be Possible Value Trap.
Key valuation signals for NSE:AAVAS:
ROA %: 3.43% (near median its 10-year median of 3.39)
GF Value™: ₹2,164.32 vs. price of ₹1,489.90 (31.2% below fair value)
Industry Position: 250% above the Banks median (#64 of 1532)
No single metric tells the full story. See the NSE:AAVAS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AAVAS Financiers Ltd is a housing finance company. The company provides housing loans to customers belonging to the low and middle-income and self-employed segments in suburban and rural India. Its only operating segment is Lending to borrowers. The company's product portfolio includes home loans, land purchases and construction, home improvement loans, home equity, micro, small, and medium enterprise loan, and others. It offers customers loans for the purchase or construction of residential properties and the extension and repair of existing housing units.
83GF Score
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