GHCLNSE:GHCL +0.21%77 ROA % is 10.76% as of Mar. 2026, which is 6% below its 10-year median of 11.46. GuruFocus rates NSE:GHCL with a GF Score™ of 77/100 and a GF Value™ of ₹534.38 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 1,614 Chemicals companies, GHCL ranks better than 90.33% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. GHCL's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹4,626 Mil.
GHCL's average Total Assets over the quarter that ended in Mar. 2026 was ₹42,997 Mil. Therefore, GHCL's annualized ROA % for the quarter that ended in Mar. 2026 was 10.76%.
The historical rank and industry rank for GHCL's ROA % or its related term are showing as below:
NSE:GHCL'
s ROA % Range Over the Past 10 Years
Min: 8.01 Med: 11.46 Max: 22.54
Current: 11.11
During the past 13 years, GHCL's highest ROA % was 22.54%. The lowest was 8.01%. And the median was 11.46%.
NSE:GHCL's ROA % is ranked better than 90.33% of 1614
companies
in the Chemicals industry
Industry Median: 2.9
vs NSE:GHCL: 11.11
GHCL (NSE:GHCL) 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.
GHCL ROA % Related Terms
GHCL ROA % Historical Data
* Premium members only.
The historical data trend for GHCL'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 Chemicals subindustry, GHCL'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.
GHCL ROA % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, GHCL's ROA % distribution charts can be found below:
* The bar in red indicates where GHCL'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.
GHCL (NSE:GHCL) has a ROA % of 10.76% 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 GHCL and its competitors. This is near median its historical median of 11.46. Over the past decade, GHCL's ROA % has ranged from 8.01 to 22.54. According to the industry distribution chart, GHCL ranks #156 out of 1614 companies in the Chemicals industry, placing it in the top 9.7%.
Is GHCL's ROA % too high?
GHCL's current ROA % of 10.76% is near median its 10-year median of 11.46. Over the past 10 years, this metric has ranged from a low of 8.01 to a high of 22.54. The Chemicals industry median ROA % is 2.90. GHCL's value of 10.76% is 271% above this industry median. Based on the distribution chart, GHCL ranks #156 out of 1614 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, GHCL has a GF Score™ of 77/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does GHCL's ROA % compare to DOW?
According to the Chemicals industry distribution chart, GHCL ranks #156 out of 1614 companies for ROA %. This places GHCL in the top 10% of its industry — outperforming the majority of peers. The industry median ROA % is 2.90. GHCL's value of 10.76% is 271% above this benchmark. Historically, GHCL's own ROA % has ranged from 8.01 to 22.54 over the past decade. While the company's 10-year median is 11.46 vs. the industry median of 2.90, GHCL 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 2.90, based on 1,614 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. GHCL's current ROA % of 10.76% is 271% 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 GHCL and its competitors. For the Chemicals industry, the median ROA % is 2.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. GHCL's current ROA % is 10.76%, which is near median its own 10-year median of 11.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GHCL stock overvalued right now?
Based on GuruFocus' analysis, GHCL (NSE:GHCL) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹534.38, compared to a current price of ₹430.00 — trading 19.5% below its estimated fair value. The current ROA % is 10.76%, which is near median its 10-year median of 11.46 and 271% above the Chemicals industry median of 2.90. GHCL's overall GF Score™ is 77/100 with 1 warning sign 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 GHCL (NSE:GHCL), the current ROA % is 10.76% 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 GHCL (NSE:GHCL) Overvalued in 2026?
Based on GuruFocus' analysis, GHCL stock appears to be undervalued.
The current stock price of ₹430.00 is trading 19.5% below its estimated GF Value™ of ₹534.38.
GuruFocus considers GHCL to be Modestly Undervalued.
Key valuation signals for NSE:GHCL:
ROA %: 10.76% (near median its 10-year median of 11.46)
GF Value™: ₹534.38 vs. price of ₹430.00 (19.5% below fair value)
Industry Position: 271% above the Chemicals median (#156 of 1614)
No single metric tells the full story. See the NSE:GHCL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
GHCL Ltd is engaged in the business of Manufacturing & trading of Inorganic Chemicals (mainly manufacture and sale of Soda Ash). The Company's operations pertain to one segment i.e. Inorganic Chemicals. The company has presence in India, and Outside India. The company has presence in India. The company predominantly utilises seawater for its operations, thereby minimising dependence on freshwater resources and avoiding any impact on local community water availability.
77GF Score
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