Rail Vikas NigamNSE:RVNL -0.46%72 ROA % is 3.45% as of Mar. 2026, which is 47% below its 10-year median of 6.56. GuruFocus rates NSE:RVNL with a GF Score™ of 72/100 and a GF Value™ of ₹348.91 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 1,776 Construction companies, Rail Vikas Nigam ranks better than 60.59% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Rail Vikas Nigam's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹7,483 Mil.
Rail Vikas Nigam's average Total Assets over the quarter that ended in Mar. 2026 was ₹217,020 Mil. Therefore, Rail Vikas Nigam's annualized ROA % for the quarter that ended in Mar. 2026 was 3.45%.
The historical rank and industry rank for Rail Vikas Nigam's ROA % or its related term are showing as below:
NSE:RVNL'
s ROA % Range Over the Past 10 Years
Min: 2.82 Med: 6.56 Max: 8.18
Current: 4.24
During the past 13 years, Rail Vikas Nigam's highest ROA % was 8.18%. The lowest was 2.82%. And the median was 6.56%.
NSE:RVNL's ROA % is ranked better than 60.59% of 1776
companies
in the Construction industry
Industry Median: 2.795
vs NSE:RVNL: 4.24
Rail Vikas Nigam (NSE:RVNL) 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.
Rail Vikas Nigam ROA % Related Terms
Rail Vikas Nigam ROA % Historical Data
* Premium members only.
The historical data trend for Rail Vikas Nigam'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 Engineering & Construction subindustry, Rail Vikas Nigam'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.
Rail Vikas Nigam ROA % vs Construction Industry
For the Construction industry and Industrials sector, Rail Vikas Nigam's ROA % distribution charts can be found below:
* The bar in red indicates where Rail Vikas Nigam'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.
Rail Vikas Nigam (NSE:RVNL) has a ROA % of 3.45% 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 Rail Vikas Nigam and its competitors. This is 47% below median its historical median of 6.56. Over the past decade, Rail Vikas Nigam's ROA % has ranged from 2.82 to 8.18. According to the industry distribution chart, Rail Vikas Nigam ranks #700 out of 1776 companies in the Construction industry, placing it in the top 39.4%.
Is Rail Vikas Nigam's ROA % too high?
Rail Vikas Nigam's current ROA % of 3.45% is 47% below median its 10-year median of 6.56. Over the past 10 years, this metric has ranged from a low of 2.82 to a high of 8.18. The Construction industry median ROA % is 2.80. Rail Vikas Nigam's value of 3.45% is 23.4% above this industry median. Based on the distribution chart, Rail Vikas Nigam ranks #700 out of 1776 companies in the Construction industry, which is above the industry midpoint. Overall, Rail Vikas Nigam has a GF Score™ of 72/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Rail Vikas Nigam's ROA % compare to PWR and FIX?
According to the Construction industry distribution chart, Rail Vikas Nigam ranks #700 out of 1776 companies for ROA %. This puts Rail Vikas Nigam in the upper half of its industry. The industry median ROA % is 2.80. Rail Vikas Nigam's value of 3.45% is 23.4% above this benchmark. Historically, Rail Vikas Nigam's own ROA % has ranged from 2.82 to 8.18 over the past decade. While the company's 10-year median is 6.56 vs. the industry median of 2.80, Rail Vikas Nigam 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 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. Rail Vikas Nigam's current ROA % of 3.45% is 23.4% 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 Rail Vikas Nigam 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. Rail Vikas Nigam's current ROA % is 3.45%, which is 47% below median its own 10-year median of 6.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rail Vikas Nigam stock overvalued right now?
Based on GuruFocus' analysis, Rail Vikas Nigam (NSE:RVNL) is currently considered Possible Value Trap. The stock's GF Value™ is ₹348.91, compared to a current price of ₹235.77 — trading 32.4% below its estimated fair value. The current ROA % is 3.45%, which is 47% below median its 10-year median of 6.56 and 23.4% above the Construction industry median of 2.80. Rail Vikas Nigam's overall GF Score™ is 72/100 with 6 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 Rail Vikas Nigam (NSE:RVNL), the current ROA % is 3.45% 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 Rail Vikas Nigam (NSE:RVNL) Overvalued in 2026?
Based on GuruFocus' analysis, Rail Vikas Nigam stock appears to be undervalued.
The current stock price of ₹235.77 is trading 32.4% below its estimated GF Value™ of ₹348.91.
GuruFocus considers Rail Vikas Nigam to be Possible Value Trap.
Key valuation signals for NSE:RVNL:
ROA %: 3.45% (47% below median its 10-year median of 6.56)
GF Value™: ₹348.91 vs. price of ₹235.77 (32.4% below fair value)
Industry Position: 23.4% above the Construction median (#700 of 1776)
No single metric tells the full story. See the NSE:RVNL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rail Vikas Nigam Ltd is an Indian-based company, engaged in the business of implementing various types of Rail infrastructure projects. It executes projects such as new lines, doubling, gauge conversion, railway electrification, metro projects, workshops, bridges, construction of cable-stayed bridges, institution buildings, and others. The company has only one reportable segment namely, Development of Railway Infrastructure.
72GF Score
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