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.
Reliance Industrial Infrastructure ROA % Related Terms
Reliance Industrial Infrastructure ROA % Historical 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.
For the Engineering & Construction subindustry, Reliance Industrial Infrastructure'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.
Reliance Industrial Infrastructure ROA % vs Construction Industry
For the Construction industry and Industrials sector, Reliance Industrial Infrastructure's ROA % distribution charts can be found below:
* The bar in red indicates where Reliance Industrial Infrastructure'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.
Reliance Industrial Infrastructure (NSE:RIIL) has a ROA % of 2.43% 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 Reliance Industrial Infrastructure and its competitors. This is near median its historical median of 2.34. Over the past decade, Reliance Industrial Infrastructure's ROA % has ranged from 1.82 to 4.44. According to the industry distribution chart, Reliance Industrial Infrastructure ranks #944 out of 1776 companies in the Construction industry, placing it in the top 53.2%.
Is Reliance Industrial Infrastructure's ROA % too high?
Reliance Industrial Infrastructure's current ROA % of 2.43% is near median its 10-year median of 2.34. Over the past 10 years, this metric has ranged from a low of 1.82 to a high of 4.44. The Construction industry median ROA % is 2.80. Reliance Industrial Infrastructure's value of 2.43% is 13.2% below this industry median. Based on the distribution chart, Reliance Industrial Infrastructure ranks #944 out of 1776 companies in the Construction industry, which is below the industry midpoint. Overall, Reliance Industrial Infrastructure has a GF Score™ of 67/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Reliance Industrial Infrastructure's ROA % compare to PWR and FIX?
According to the Construction industry distribution chart, Reliance Industrial Infrastructure ranks #944 out of 1776 companies for ROA %. This places Reliance Industrial Infrastructure in the lower half of its industry. The industry median ROA % is 2.80. Reliance Industrial Infrastructure's value of 2.43% is 13.2% below this benchmark. Historically, Reliance Industrial Infrastructure's own ROA % has ranged from 1.82 to 4.44 over the past decade. While the company's 10-year median is 2.34 vs. the industry median of 2.80, Reliance Industrial Infrastructure has consistently been below 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 Construction company?
The median ROA % among Construction companies is 2.80, based on 1,776 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. Reliance Industrial Infrastructure's current ROA % of 2.43% is 13.2% below 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 Reliance Industrial Infrastructure and its competitors. For the Construction industry, the median ROA % is 2.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Reliance Industrial Infrastructure's current ROA % is 2.43%, which is near median its own 10-year median of 2.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Reliance Industrial Infrastructure stock overvalued right now?
Based on GuruFocus' analysis, Reliance Industrial Infrastructure (NSE:RIIL) is currently considered Fairly Valued. The stock's GF Value™ is ₹791.93, compared to a current price of ₹810.30 — trading 2.3% above its estimated fair value. The current ROA % is 2.43%, which is near median its 10-year median of 2.34 and 13.2% below the Construction industry median of 2.80. Reliance Industrial Infrastructure's overall GF Score™ is 67/100 with 3 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 Reliance Industrial Infrastructure (NSE:RIIL), the current ROA % is 2.43% 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 Reliance Industrial Infrastructure (NSE:RIIL) Overvalued in 2026?
Based on GuruFocus' analysis, Reliance Industrial Infrastructure stock appears to be overvalued.
The current stock price of ₹810.30 is trading 2.3% above its estimated GF Value™ of ₹791.93.
GuruFocus considers Reliance Industrial Infrastructure to be Fairly Valued.
Key valuation signals for NSE:RIIL:
ROA %: 2.43% (near median its 10-year median of 2.34)
GF Value™: ₹791.93 vs. price of ₹810.30 (2.3% above fair value)
Industry Position: 13.2% below the Construction median (#944 of 1776)
No single metric tells the full story. See the NSE:RIIL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Reliance Industrial Infrastructure Business Description
Reliance Industrial Infrastructure Ltd is engaged in the Infrastructure and Support Services Activities. Its main activities are pipelines for transportation of petroleum products, natural gas & raw water, and other infrastructure support services. The Company has its operations mainly in the Mumbai and the Rasayani regions of Maharashtra, and Hazira (Surat) in Gujarat.
67GF Score
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