Sagar CementsNSE:SAGCEM +2.38%63 ROA % is 7.78% as of Mar. 2026, which is 860% above its 10-year median of 0.81. GuruFocus rates NSE:SAGCEM with a GF Score™ of 63/100 and a GF Value™ of ₹1,835.20 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 409 Building Materials companies, Sagar Cements ranks worse than 72.86% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Sagar Cements's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹3,504 Mil.
Sagar Cements's average Total Assets over the quarter that ended in Mar. 2026 was ₹45,053 Mil. Therefore, Sagar Cements's annualized ROA % for the quarter that ended in Mar. 2026 was 7.78%.
The historical rank and industry rank for Sagar Cements's ROA % or its related term are showing as below:
NSE:SAGCEM'
s ROA % Range Over the Past 10 Years
Min: -4.92 Med: 0.81 Max: 8.32
Current: -0.25
During the past 13 years, Sagar Cements's highest ROA % was 8.32%. The lowest was -4.92%. And the median was 0.81%.
NSE:SAGCEM's ROA % is ranked worse than 72.86% of 409
companies
in the Building Materials industry
Industry Median: 2.34
vs NSE:SAGCEM: -0.25
Sagar Cements (NSE:SAGCEM) 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.
Sagar Cements ROA % Related Terms
Sagar Cements ROA % Historical Data
* Premium members only.
The historical data trend for Sagar Cements'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 Building Materials subindustry, Sagar Cements'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.
Sagar Cements ROA % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Sagar Cements's ROA % distribution charts can be found below:
* The bar in red indicates where Sagar Cements'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.
Sagar Cements (NSE:SAGCEM) has a ROA % of 7.78% 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 Sagar Cements and its competitors. This is 860% above median its historical median of 0.81. According to the industry distribution chart, Sagar Cements ranks #298 out of 409 companies in the Building Materials industry, placing it in the top 72.9%.
Is Sagar Cements' ROA % too high?
Sagar Cements' current ROA % of 7.78% is 860% above median its 10-year median of 0.81. The Building Materials industry median ROA % is 2.34. Sagar Cements' value of 7.78% is 232.5% above this industry median. Based on the distribution chart, Sagar Cements ranks #298 out of 409 companies in the Building Materials industry, which is below the industry midpoint. Overall, Sagar Cements has a GF Score™ of 63/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Sagar Cements' ROA % compare to CRH and VMC?
According to the Building Materials industry distribution chart, Sagar Cements ranks #298 out of 409 companies for ROA %. This places Sagar Cements in the lower half of its industry. The industry median ROA % is 2.34. Sagar Cements' value of 7.78% is 232.5% above this benchmark. While the company's 10-year median is 0.81 vs. the industry median of 2.34, Sagar Cements 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 Building Materials company?
The median ROA % among Building Materials companies is 2.34, based on 409 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. Sagar Cements's current ROA % of 7.78% is 232.5% 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 Sagar Cements and its competitors. For the Building Materials industry, the median ROA % is 2.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sagar Cements's current ROA % is 7.78%, which is 860% above median its own 10-year median of 0.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sagar Cements stock overvalued right now?
Based on GuruFocus' analysis, Sagar Cements (NSE:SAGCEM) is currently considered Possible Value Trap. The stock's GF Value™ is ₹1,835.20, compared to a current price of ₹178.32 — trading 90.3% below its estimated fair value. The current ROA % is 7.78%, which is 860% above median its 10-year median of 0.81 and 232.5% above the Building Materials industry median of 2.34. Sagar Cements' overall GF Score™ is 63/100 with 4 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 Sagar Cements (NSE:SAGCEM), the current ROA % is 7.78% 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 Sagar Cements (NSE:SAGCEM) Overvalued in 2026?
Based on GuruFocus' analysis, Sagar Cements stock appears to be undervalued.
The current stock price of ₹178.32 is trading 90.3% below its estimated GF Value™ of ₹1,835.20.
GuruFocus considers Sagar Cements to be Possible Value Trap.
Key valuation signals for NSE:SAGCEM:
ROA %: 7.78% (860% above median its 10-year median of 0.81)
GF Value™: ₹1,835.20 vs. price of ₹178.32 (90.3% below fair value)
Industry Position: 232.5% above the Building Materials median (#298 of 409)
No single metric tells the full story. See the NSE:SAGCEM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sagar Cements Ltd is a manufacturer and supplier of cement and cement-related products in India. It manufactures varieties of cement such as Ordinary Portland Cement, Portland Pozzolana Cement (PPC), Sulphate Resisting Portland Cement (SRPC), Ground Granulated Blast Furnace Slag (GGBS), and Portland Slag Cement (PSC), and among others. The firm generates a majority of its revenue from the Sale of cement and clinker.
63GF Score
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