CSL FinanceNSE:CSLFINANCE -0.97%79 ROA % is 5.22% as of Mar. 2026, which is 29% below its 10-year median of 7.39. GuruFocus rates NSE:CSLFINANCE with a GF Score™ of 79/100 and a GF Value™ of ₹441.78 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 545 Credit Services companies, CSL Finance ranks better than 86.24% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. CSL Finance's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹777 Mil.
CSL Finance's average Total Assets over the quarter that ended in Mar. 2026 was ₹14,876 Mil. Therefore, CSL Finance's annualized ROA % for the quarter that ended in Mar. 2026 was 5.22%.
The historical rank and industry rank for CSL Finance's ROA % or its related term are showing as below:
NSE:CSLFINANCE'
s ROA % Range Over the Past 10 Years
Min: 6.27 Med: 7.39 Max: 12.68
Current: 6.27
During the past 13 years, CSL Finance's highest ROA % was 12.68%. The lowest was 6.27%. And the median was 7.39%.
NSE:CSLFINANCE's ROA % is ranked better than 86.24% of 545
companies
in the Credit Services industry
Industry Median: 1.92
vs NSE:CSLFINANCE: 6.27
CSL Finance (NSE:CSLFINANCE) 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.
CSL Finance ROA % Related Terms
CSL Finance ROA % Historical Data
* Premium members only.
The historical data trend for CSL 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, CSL 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.
CSL Finance ROA % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, CSL Finance's ROA % distribution charts can be found below:
* The bar in red indicates where CSL 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.
CSL Finance (NSE:CSLFINANCE) has a ROA % of 5.22% 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 CSL Finance and its competitors. This is 29% below median its historical median of 7.39. Over the past decade, CSL Finance's ROA % has ranged from 6.27 to 12.68. According to the industry distribution chart, CSL Finance ranks #75 out of 545 companies in the Credit Services industry, placing it in the top 13.8%.
Is CSL Finance's ROA % too high?
CSL Finance's current ROA % of 5.22% is 29% below median its 10-year median of 7.39. Over the past 10 years, this metric has ranged from a low of 6.27 to a high of 12.68. The Credit Services industry median ROA % is 1.92. CSL Finance's value of 5.22% is 171.9% above this industry median. Based on the distribution chart, CSL Finance ranks #75 out of 545 companies in the Credit Services industry, which is in the top quartile — a strong position relative to peers. Overall, CSL Finance has a GF Score™ of 79/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does CSL Finance's ROA % compare to V and MA?
According to the Credit Services industry distribution chart, CSL Finance ranks #75 out of 545 companies for ROA %. This places CSL Finance in the top 14% of its industry — outperforming the majority of peers. The industry median ROA % is 1.92. CSL Finance's value of 5.22% is 171.9% above this benchmark. Historically, CSL Finance's own ROA % has ranged from 6.27 to 12.68 over the past decade. While the company's 10-year median is 7.39 vs. the industry median of 1.92, CSL Finance 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 Credit Services company?
The median ROA % among Credit Services companies is 1.92, based on 545 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. CSL Finance's current ROA % of 5.22% is 171.9% 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 CSL Finance and its competitors. For the Credit Services industry, the median ROA % is 1.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CSL Finance's current ROA % is 5.22%, which is 29% below median its own 10-year median of 7.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CSL Finance stock overvalued right now?
Based on GuruFocus' analysis, CSL Finance (NSE:CSLFINANCE) is currently considered Possible Value Trap. The stock's GF Value™ is ₹441.78, compared to a current price of ₹225.97 — trading 48.9% below its estimated fair value. The current ROA % is 5.22%, which is 29% below median its 10-year median of 7.39 and 171.9% above the Credit Services industry median of 1.92. CSL Finance's overall GF Score™ is 79/100 with 7 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 CSL Finance (NSE:CSLFINANCE), the current ROA % is 5.22% 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 CSL Finance (NSE:CSLFINANCE) Overvalued in 2026?
Based on GuruFocus' analysis, CSL Finance stock appears to be undervalued.
The current stock price of ₹225.97 is trading 48.9% below its estimated GF Value™ of ₹441.78.
GuruFocus considers CSL Finance to be Possible Value Trap.
Key valuation signals for NSE:CSLFINANCE:
ROA %: 5.22% (29% below median its 10-year median of 7.39)
GF Value™: ₹441.78 vs. price of ₹225.97 (48.9% below fair value)
Industry Position: 171.9% above the Credit Services median (#75 of 545)
No single metric tells the full story. See the NSE:CSLFINANCE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
CSL Finance Ltd operates as a non-banking financial institution. The business activity of the company is to offer secured and unsecured lending to small and medium-size business units to fulfil their financial needs. The company's business is classified into two broader segments of SME business and Wholesale business. SME business is mainly focused on micro and small business loans to various business entities, which is secured mostly against self-occupied Residential or Commercial properties. Wholesale business is focused on big ticket size loans for the working capital requirement of businesses. The primary revenue source of the company is interest income. The company operates within India.
79GF Score
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