ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Servotech Renewable Power System's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹491 Mil.
Servotech Renewable Power System's average Total Assets over the quarter that ended in Mar. 2026 was ₹6,850 Mil. Therefore, Servotech Renewable Power System's annualized ROA % for the quarter that ended in Mar. 2026 was 7.17%.
NSE:SERVOTECH'
s ROA % Range Over the Past 10 Years
Min: 1.03 Med: 5.39 Max: 9.6
Current: 6.24
During the past 13 years, Servotech Renewable Power System's highest ROA % was 9.60%. The lowest was 1.03%. And the median was 5.39%.
NSE:SERVOTECH's ROA % is ranked better than 72.12% of 3074
companies
in the Industrial Products industry
Industry Median: 3.045
vs NSE:SERVOTECH: 6.24
Servotech Renewable Power System (NSE:SERVOTECH) 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.
Servotech Renewable Power System ROA % Related Terms
Servotech Renewable Power System 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 Electrical Equipment & Parts subindustry, Servotech Renewable Power System'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.
Servotech Renewable Power System ROA % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Servotech Renewable Power System's ROA % distribution charts can be found below:
* The bar in red indicates where Servotech Renewable Power System'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.
Servotech Renewable Power System (NSE:SERVOTECH) has a ROA % of 7.17% 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 Servotech Renewable Power System and its competitors. This is 33% above median its historical median of 5.39. Over the past decade, Servotech Renewable Power System's ROA % has ranged from 1.03 to 9.60. According to the industry distribution chart, Servotech Renewable Power System ranks #857 out of 3074 companies in the Industrial Products industry, placing it in the top 27.9%.
Is Servotech Renewable Power System's ROA % too high?
Servotech Renewable Power System's current ROA % of 7.17% is 33% above median its 10-year median of 5.39. Over the past 10 years, this metric has ranged from a low of 1.03 to a high of 9.60. The Industrial Products industry median ROA % is 3.05. Servotech Renewable Power System's value of 7.17% is 135.5% above this industry median. Based on the distribution chart, Servotech Renewable Power System ranks #857 out of 3074 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Servotech Renewable Power System has a GF Score™ of 89/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Servotech Renewable Power System's ROA % compare to VRT and BE?
According to the Industrial Products industry distribution chart, Servotech Renewable Power System ranks #857 out of 3074 companies for ROA %. This puts Servotech Renewable Power System in the upper half of its industry. The industry median ROA % is 3.05. Servotech Renewable Power System's value of 7.17% is 135.5% above this benchmark. Historically, Servotech Renewable Power System's own ROA % has ranged from 1.03 to 9.60 over the past decade. While the company's 10-year median is 5.39 vs. the industry median of 3.05, Servotech Renewable Power System 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 3,074 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. Servotech Renewable Power System's current ROA % of 7.17% is 135.5% 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 Servotech Renewable Power System 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. Servotech Renewable Power System's current ROA % is 7.17%, which is 33% above median its own 10-year median of 5.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Servotech Renewable Power System stock overvalued right now?
Based on GuruFocus' analysis, Servotech Renewable Power System (NSE:SERVOTECH) is currently considered Possible Value Trap. The stock's GF Value™ is ₹149.30, compared to a current price of ₹101.12 — trading 32.3% below its estimated fair value. The current ROA % is 7.17%, which is 33% above median its 10-year median of 5.39 and 135.5% above the Industrial Products industry median of 3.05. Servotech Renewable Power System's overall GF Score™ is 89/100 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 Servotech Renewable Power System (NSE:SERVOTECH), the current ROA % is 7.17% 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 Servotech Renewable Power System (NSE:SERVOTECH) Overvalued in 2026?
Based on GuruFocus' analysis, Servotech Renewable Power System stock appears to be undervalued.
The current stock price of ₹101.12 is trading 32.3% below its estimated GF Value™ of ₹149.30.
GuruFocus considers Servotech Renewable Power System to be Possible Value Trap.
Key valuation signals for NSE:SERVOTECH:
ROA %: 7.17% (33% above median its 10-year median of 5.39)
GF Value™: ₹149.30 vs. price of ₹101.12 (32.3% below fair value)
Industry Position: 135.5% above the Industrial Products median (#857 of 3074)
No single metric tells the full story. See the NSE:SERVOTECH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Servotech Renewable Power System Business Description
Servotech Renewable Power System Ltd is an Indian company in manufacturing, trading, and exporting LED, UPS, Solar Products & Flameproof LED Lights. The firm is engaged in the production, development, and marketing of both indoor and outdoor LED lighting products, solar products, and Ultraviolet C products. The product portfolio of the company includes LED tube lights and bulbs, street lights, floodlights, canopy lights, yard lights, FLP tubes, hoarding lights, system controllers, UPS, solar charge controllers, solar rooftops, UV Disinfection Lamp, UV Disinfection Handheld, UV Disinfection Truck, Sterilization Box, UVC RoboTruk, and UVLEN based on far UVC technology and others. Substantial revenue is derived from domestic sales.
89GF Score
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