ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Indostar Capital Finance's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹-16,957 Mil.
Indostar Capital Finance's average Total Assets over the quarter that ended in Mar. 2026 was ₹95,165 Mil. Therefore, Indostar Capital Finance's annualized ROA % for the quarter that ended in Mar. 2026 was -17.82%.
The historical rank and industry rank for Indostar Capital Finance's ROA % or its related term are showing as below:
NSE:INDOSTAR'
s ROA % Range Over the Past 10 Years
Min: -7.46 Med: 1.19 Max: 4.18
Current: 1.28
During the past 13 years, Indostar Capital Finance's highest ROA % was 4.18%. The lowest was -7.46%. And the median was 1.19%.
NSE:INDOSTAR's ROA % is ranked worse than 57.43% of 545
companies
in the Credit Services industry
Industry Median: 1.92
vs NSE:INDOSTAR: 1.28
Indostar Capital Finance (NSE:INDOSTAR) 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 Credit Services subindustry, Indostar Capital 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.
Indostar Capital Finance ROA % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Indostar Capital Finance's ROA % distribution charts can be found below:
* The bar in red indicates where Indostar Capital 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.
Indostar Capital Finance (NSE:INDOSTAR) has a ROA % of -17.82% 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 Indostar Capital Finance and its competitors. According to the industry distribution chart, Indostar Capital Finance ranks #313 out of 545 companies in the Credit Services industry, placing it in the top 57.4%.
Is Indostar Capital Finance's ROA % too high?
Indostar Capital Finance's current ROA % is -17.82%. Based on the distribution chart, Indostar Capital Finance ranks #313 out of 545 companies in the Credit Services industry, which is below the industry midpoint. Overall, Indostar Capital Finance has a GF Score™ of 66/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Indostar Capital Finance's ROA % compare to V and MA?
According to the Credit Services industry distribution chart, Indostar Capital Finance ranks #313 out of 545 companies for ROA %. This places Indostar Capital Finance in the lower half of its industry. The industry median ROA % is 1.92. 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. 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 Indostar Capital 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. Indostar Capital Finance's current ROA % is -17.82%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Indostar Capital Finance stock overvalued right now?
Based on GuruFocus' analysis, Indostar Capital Finance (NSE:INDOSTAR) is currently considered Fairly Valued. The stock's GF Value™ is ₹229.95, compared to a current price of ₹252.60 — trading 9.8% above its estimated fair value. The current ROA % is -17.82%. Indostar Capital Finance's overall GF Score™ is 66/100 with 8 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 Indostar Capital Finance (NSE:INDOSTAR), the current ROA % is -17.82% 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 Indostar Capital Finance (NSE:INDOSTAR) Overvalued in 2026?
Based on GuruFocus' analysis, Indostar Capital Finance stock appears to be overvalued.
The current stock price of ₹252.60 is trading 9.8% above its estimated GF Value™ of ₹229.95.
GuruFocus considers Indostar Capital Finance to be Fairly Valued.
Key valuation signals for NSE:INDOSTAR:
ROA %: -17.82%
GF Value™: ₹229.95 vs. price of ₹252.60 (9.8% above fair value)
No single metric tells the full story. See the NSE:INDOSTAR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Indostar Capital Finance Ltd is a non-banking finance company. It is engaged in the business of lending to used and new commercial vehicles, corporates, SME businesses, and Micro businesses. Through its subsidiaries, it also offers investment advisory, housing finance, and asset management services. The group operates in the following segments: Large Corporate, SME, Commercial vehicle, and Housing Finance. The majority of its revenue is generated from the Commercial vehicle segment, which mainly consists of financing for used and new vehicles. Geographically, all of its operations are carried out within India.
66GF Score
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