ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Divgi TorqTransfer Systems's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹619 Mil.
Divgi TorqTransfer Systems's average Total Assets over the quarter that ended in Mar. 2026 was ₹7,314 Mil. Therefore, Divgi TorqTransfer Systems's annualized ROA % for the quarter that ended in Mar. 2026 was 8.47%.
The historical rank and industry rank for Divgi TorqTransfer Systems's ROA % or its related term are showing as below:
NSE:DIVGIITTS'
s ROA % Range Over the Past 10 Years
Min: 3.75 Med: 9.23 Max: 12.01
Current: 6.77
During the past 7 years, Divgi TorqTransfer Systems's highest ROA % was 12.01%. The lowest was 3.75%. And the median was 9.23%.
NSE:DIVGIITTS's ROA % is ranked better than 77.6% of 1335
companies
in the Vehicles & Parts industry
Industry Median: 2.95
vs NSE:DIVGIITTS: 6.77
Divgi TorqTransfer Systems (NSE:DIVGIITTS) 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.
* 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 Auto Parts subindustry, Divgi TorqTransfer Systems'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.
Divgi TorqTransfer Systems ROA % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Divgi TorqTransfer Systems's ROA % distribution charts can be found below:
* The bar in red indicates where Divgi TorqTransfer Systems'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.
Divgi TorqTransfer Systems (NSE:DIVGIITTS) has a ROA % of 8.47% 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 Divgi TorqTransfer Systems and its competitors. This is near median its historical median of 9.23. Over the past decade, Divgi TorqTransfer Systems' ROA % has ranged from 3.75 to 12.01. According to the industry distribution chart, Divgi TorqTransfer Systems ranks #299 out of 1335 companies in the Vehicles & Parts industry, placing it in the top 22.4%.
Is Divgi TorqTransfer Systems' ROA % too high?
Divgi TorqTransfer Systems' current ROA % of 8.47% is near median its 10-year median of 9.23. Over the past 10 years, this metric has ranged from a low of 3.75 to a high of 12.01. The Vehicles & Parts industry median ROA % is 2.95. Divgi TorqTransfer Systems' value of 8.47% is 187.1% above this industry median. Based on the distribution chart, Divgi TorqTransfer Systems ranks #299 out of 1335 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Divgi TorqTransfer Systems has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Divgi TorqTransfer Systems' ROA % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Divgi TorqTransfer Systems ranks #299 out of 1335 companies for ROA %. This places Divgi TorqTransfer Systems in the top 22% of its industry — outperforming the majority of peers. The industry median ROA % is 2.95. Divgi TorqTransfer Systems' value of 8.47% is 187.1% above this benchmark. Historically, Divgi TorqTransfer Systems' own ROA % has ranged from 3.75 to 12.01 over the past decade. While the company's 10-year median is 9.23 vs. the industry median of 2.95, Divgi TorqTransfer Systems 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 Vehicles & Parts company?
The median ROA % among Vehicles & Parts companies is 2.95, based on 1,335 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. Divgi TorqTransfer Systems's current ROA % of 8.47% is 187.1% 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 Divgi TorqTransfer Systems and its competitors. For the Vehicles & Parts industry, the median ROA % is 2.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Divgi TorqTransfer Systems's current ROA % is 8.47%, which is near median its own 10-year median of 9.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Divgi TorqTransfer Systems stock overvalued right now?
Based on GuruFocus' analysis, Divgi TorqTransfer Systems (NSE:DIVGIITTS) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹1,063.56, compared to a current price of ₹855.25 — trading 19.6% below its estimated fair value. The current ROA % is 8.47%, which is near median its 10-year median of 9.23 and 187.1% above the Vehicles & Parts industry median of 2.95. Divgi TorqTransfer Systems' overall GF Score™ is 79/100 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 Divgi TorqTransfer Systems (NSE:DIVGIITTS), the current ROA % is 8.47% 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 Divgi TorqTransfer Systems (NSE:DIVGIITTS) Overvalued in 2026?
Based on GuruFocus' analysis, Divgi TorqTransfer Systems stock appears to be undervalued.
The current stock price of ₹855.25 is trading 19.6% below its estimated GF Value™ of ₹1,063.56.
GuruFocus considers Divgi TorqTransfer Systems to be Modestly Undervalued.
Key valuation signals for NSE:DIVGIITTS:
ROA %: 8.47% (near median its 10-year median of 9.23)
GF Value™: ₹1,063.56 vs. price of ₹855.25 (19.6% below fair value)
Industry Position: 187.1% above the Vehicles & Parts median (#299 of 1335)
No single metric tells the full story. See the NSE:DIVGIITTS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Divgi TorqTransfer Systems Ltd is engaged in the business as an automotive component entity. It develops and provides system-level transfer cases, torque couplers, and dual clutch automatic transmission solutions. The Company operates only in one business segment, viz. Auto Components and Parts. The secondary segment is based on geographical demarcation, i.e., domestic and exports. The company gained the majority of its revenue from India, followed by the USA, Mexico, and Sweden.
79GF Score
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