Rama TelecomNSE:RTL -1.77%18 ROA % is 28.17% as of Mar. 2025, which is 154% above its 10-year median of 11.11. GuruFocus rates NSE:RTL with a GF Score™ of 18/100. The stock has 8 warning signs investors should review. Among 372 Telecommunication Services companies, Rama Telecom ranks better than 98.66% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Rama Telecom's annualizedNet Income for the quarter that ended in Mar. 2025 was ₹72.1 Mil.
Rama Telecom's average Total Assets over the quarter that ended in Mar. 2025 was ₹256.0 Mil. Therefore, Rama Telecom's annualized ROA % for the quarter that ended in Mar. 2025 was 28.17%.
The historical rank and industry rank for Rama Telecom's ROA % or its related term are showing as below:
NSE:RTL'
s ROA % Range Over the Past 10 Years
Min: 7.35 Med: 11.11 Max: 23.48
Current: 23.48
During the past 4 years, Rama Telecom's highest ROA % was 23.48%. The lowest was 7.35%. And the median was 11.11%.
NSE:RTL's ROA % is ranked better than 98.66% of 372
companies
in the Telecommunication Services industry
Industry Median: 2.745
vs NSE:RTL: 23.48
Rama Telecom (NSE:RTL) 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 two times the semi-annual (Mar. 2025) net income data. The Revenue data used here is two times the semi-annual (Mar. 2025) 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.
Rama Telecom ROA % Related Terms
Rama Telecom ROA % Historical Data
* Premium members only.
The historical data trend for Rama Telecom'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.
Rama Telecom ROA % Chart
Rama Telecom Annual Data
Trend
Mar22
Mar23
Mar24
Mar25
ROA %
7.44
7.35
14.77
23.00
Rama Telecom Semi-Annual Data
Mar22
Mar23
Mar24
Sep24
Mar25
ROA %
0.00
0.00
0.00
18.32
28.17
NSE:RTL vs TMUS, VZ, T: ROA % Comparison
For the Telecom Services subindustry, Rama Telecom'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.
Rama Telecom ROA % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Rama Telecom's ROA % distribution charts can be found below:
* The bar in red indicates where Rama Telecom'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 two times the semi-annual (Mar. 2025) net income data.
ROA % is displayed in the 30-year financial page.
Rama Telecom (NSE:RTL) has a ROA % of 28.17% as of Mar. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Rama Telecom and its competitors. This is 154% above median its historical median of 11.11. Over the past decade, Rama Telecom's ROA % has ranged from 7.35 to 23.48. According to the industry distribution chart, Rama Telecom ranks #5 out of 372 companies in the Telecommunication Services industry, placing it in the top 1.3%.
Is Rama Telecom's ROA % too high?
Rama Telecom's current ROA % of 28.17% is 154% above median its 10-year median of 11.11. Over the past 10 years, this metric has ranged from a low of 7.35 to a high of 23.48. The Telecommunication Services industry median ROA % is 2.75. Rama Telecom's value of 28.17% is 926.2% above this industry median. Based on the distribution chart, Rama Telecom ranks #5 out of 372 companies in the Telecommunication Services industry, which is in the top quartile — a strong position relative to peers. Overall, Rama Telecom has a GF Score™ of 18/100, reflecting its overall financial health beyond just this single metric.
How does Rama Telecom's ROA % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Rama Telecom ranks #5 out of 372 companies for ROA %. This places Rama Telecom in the top 1% of its industry — outperforming the majority of peers. The industry median ROA % is 2.75. Rama Telecom's value of 28.17% is 926.2% above this benchmark. Historically, Rama Telecom's own ROA % has ranged from 7.35 to 23.48 over the past decade. While the company's 10-year median is 11.11 vs. the industry median of 2.75, Rama Telecom 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 Telecommunication Services company?
The median ROA % among Telecommunication Services companies is 2.75, based on 372 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. Rama Telecom's current ROA % of 28.17% is 926.2% 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 Rama Telecom and its competitors. For the Telecommunication Services industry, the median ROA % is 2.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rama Telecom's current ROA % is 28.17%, which is 154% above median its own 10-year median of 11.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rama Telecom stock overvalued right now?
Rama Telecom (NSE:RTL) has a current ROA % of 28.17%. The current ROA % is 28.17%, which is 154% above median its 10-year median of 11.11 and 926.2% above the Telecommunication Services industry median of 2.75. Rama Telecom's overall GF Score™ is 18/100 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 Rama Telecom (NSE:RTL), the current ROA % is 28.17% as of Mar. 2025. 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.
Rama Telecom Ltd is a technology-driven engineering company with expertise in optical fiber, providing end to end customized networking solutions in the telecom forefront. The company continuously supports its services to the Railways, Telecom, Petroleum and Airport sector. Its business services are provided to the Railway Sector and Telecom Sector. It operates in a single Business segment, which is the business of Trading & installation works of contractors. The company provides customized E2E networking solutions in the Telecom & Datacom forefront.
18GF Score
Get the complete analysis for NSE:RTL
ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NSE:RTL has been successfully added to your 