Ramkrishna ForgingsNSE:RKFORGE -1.18%84 ROA % is 3.12% as of Mar. 2026, which is 41% below its 10-year median of 5.25. GuruFocus rates NSE:RKFORGE with a GF Score™ of 84/100 and a GF Value™ of ₹789.29 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 3,075 Industrial Products companies, Ramkrishna Forgings ranks worse than 66.41% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Ramkrishna Forgings's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹2,238 Mil.
Ramkrishna Forgings's average Total Assets over the quarter that ended in Mar. 2026 was ₹71,780 Mil. Therefore, Ramkrishna Forgings's annualized ROA % for the quarter that ended in Mar. 2026 was 3.12%.
The historical rank and industry rank for Ramkrishna Forgings's ROA % or its related term are showing as below:
NSE:RKFORGE'
s ROA % Range Over the Past 10 Years
Min: 0.44 Med: 5.25 Max: 7.03
Current: 1.04
During the past 13 years, Ramkrishna Forgings's highest ROA % was 7.03%. The lowest was 0.44%. And the median was 5.25%.
NSE:RKFORGE's ROA % is ranked worse than 66.41% of 3075
companies
in the Industrial Products industry
Industry Median: 3.05
vs NSE:RKFORGE: 1.04
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.
Ramkrishna Forgings ROA % Related Terms
Ramkrishna Forgings ROA % Historical Data
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The historical data trend for Ramkrishna Forgings'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 Metal Fabrication subindustry, Ramkrishna Forgings'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.
Ramkrishna Forgings ROA % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Ramkrishna Forgings's ROA % distribution charts can be found below:
* The bar in red indicates where Ramkrishna Forgings'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.
Ramkrishna Forgings (NSE:RKFORGE) has a ROA % of 3.12% 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 Ramkrishna Forgings and its competitors. This is 41% below median its historical median of 5.25. Over the past decade, Ramkrishna Forgings' ROA % has ranged from 0.44 to 7.03. According to the industry distribution chart, Ramkrishna Forgings ranks #2042 out of 3075 companies in the Industrial Products industry, placing it in the top 66.4%.
Is Ramkrishna Forgings' ROA % too high?
Ramkrishna Forgings' current ROA % of 3.12% is 41% below median its 10-year median of 5.25. Over the past 10 years, this metric has ranged from a low of 0.44 to a high of 7.03. The Industrial Products industry median ROA % is 3.05. Ramkrishna Forgings' value of 3.12% is 2.3% above this industry median. Based on the distribution chart, Ramkrishna Forgings ranks #2042 out of 3075 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Ramkrishna Forgings has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ramkrishna Forgings' ROA % compare to ATI and CRS?
According to the Industrial Products industry distribution chart, Ramkrishna Forgings ranks #2042 out of 3075 companies for ROA %. This places Ramkrishna Forgings in the lower half of its industry. The industry median ROA % is 3.05. Ramkrishna Forgings' value of 3.12% is 2.3% above this benchmark. Historically, Ramkrishna Forgings' own ROA % has ranged from 0.44 to 7.03 over the past decade. While the company's 10-year median is 5.25 vs. the industry median of 3.05, Ramkrishna Forgings 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 an Industrial Products company?
The median ROA % among Industrial Products companies is 3.05, based on 3,075 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. Ramkrishna Forgings's current ROA % of 3.12% is 2.3% 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 Ramkrishna Forgings and its competitors. For the Industrial Products industry, the median ROA % is 3.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ramkrishna Forgings's current ROA % is 3.12%, which is 41% below median its own 10-year median of 5.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ramkrishna Forgings stock overvalued right now?
Based on GuruFocus' analysis, Ramkrishna Forgings (NSE:RKFORGE) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹789.29, compared to a current price of ₹563.70 — trading 28.6% below its estimated fair value. The current ROA % is 3.12%, which is 41% below median its 10-year median of 5.25 and 2.3% above the Industrial Products industry median of 3.05. Ramkrishna Forgings' overall GF Score™ is 84/100 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 Ramkrishna Forgings (NSE:RKFORGE), the current ROA % is 3.12% 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 Ramkrishna Forgings (NSE:RKFORGE) Overvalued in 2026?
Based on GuruFocus' analysis, Ramkrishna Forgings stock appears to be undervalued.
The current stock price of ₹563.70 is trading 28.6% below its estimated GF Value™ of ₹789.29.
GuruFocus considers Ramkrishna Forgings to be Modestly Undervalued.
Key valuation signals for NSE:RKFORGE:
ROA %: 3.12% (41% below median its 10-year median of 5.25)
GF Value™: ₹789.29 vs. price of ₹563.70 (28.6% below fair value)
Industry Position: 2.3% above the Industrial Products median (#2042 of 3075)
No single metric tells the full story. See the NSE:RKFORGE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ramkrishna Forgings Ltd is an Indian-based company, that engages in the manufacture of forgings and production of metal products. Its product portfolio includes engine components, front and rear axle components, transmission components, crown wheels and bellcrank assemblies, and others. The company's forgings are used in various industries and sectors, including automotive, earth moving and mining, farm equipment, general engineering, railways, steel plants, and others. Geographically the company caters its services to both domestic and overseas markets.
84GF Score
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