ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Sharda Motor Industries's annualizedNet Income for the quarter that ended in Dec. 2025 was ₹3,254 Mil.
Sharda Motor Industries's average Total Assets over the quarter that ended in Dec. 2025 was ₹18,919 Mil. Therefore, Sharda Motor Industries's annualized ROA % for the quarter that ended in Dec. 2025 was 17.20%.
The historical rank and industry rank for Sharda Motor Industries's ROA % or its related term are showing as below:
NSE:SHARDAMOTR'
s ROA % Range Over the Past 10 Years
Min: 6.67 Med: 14.4 Max: 19.86
Current: 19.52
During the past 13 years, Sharda Motor Industries's highest ROA % was 19.86%. The lowest was 6.67%. And the median was 14.40%.
NSE:SHARDAMOTR's ROA % is ranked better than 98.43% of 1335
companies
in the Vehicles & Parts industry
Industry Median: 2.95
vs NSE:SHARDAMOTR: 19.52
Sharda Motor Industries (NSE:SHARDAMOTR) 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 (Dec. 2025) net income data. The Revenue data used here is four times the quarterly (Dec. 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.
* 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 Auto Parts subindustry, Sharda Motor Industries'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.
Sharda Motor Industries ROA % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Sharda Motor Industries's ROA % distribution charts can be found below:
* The bar in red indicates where Sharda Motor Industries'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 (Dec. 2025) net income data.
ROA % is displayed in the 30-year financial page.
Sharda Motor Industries (NSE:SHARDAMOTR) has a ROA % of 17.20% as of Dec. 2025. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Sharda Motor Industries and its competitors. This is 19% above median its historical median of 14.40. Over the past decade, Sharda Motor Industries' ROA % has ranged from 6.67 to 19.86. According to the industry distribution chart, Sharda Motor Industries ranks #21 out of 1335 companies in the Vehicles & Parts industry, placing it in the top 1.6%.
Is Sharda Motor Industries' ROA % too high?
Sharda Motor Industries' current ROA % of 17.20% is 19% above median its 10-year median of 14.40. Over the past 10 years, this metric has ranged from a low of 6.67 to a high of 19.86. The Vehicles & Parts industry median ROA % is 2.95. Sharda Motor Industries' value of 17.20% is 483.1% above this industry median. Based on the distribution chart, Sharda Motor Industries ranks #21 out of 1335 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Sharda Motor Industries has a GF Score™ of 91/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Sharda Motor Industries' ROA % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Sharda Motor Industries ranks #21 out of 1335 companies for ROA %. This places Sharda Motor Industries in the top 2% of its industry — outperforming the majority of peers. The industry median ROA % is 2.95. Sharda Motor Industries' value of 17.20% is 483.1% above this benchmark. Historically, Sharda Motor Industries' own ROA % has ranged from 6.67 to 19.86 over the past decade. While the company's 10-year median is 14.40 vs. the industry median of 2.95, Sharda Motor Industries 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 Vehicles & Parts company?
The median ROA % among Vehicles & Parts companies is 2.95, based on 1,335 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. Sharda Motor Industries's current ROA % of 17.20% is 483.1% 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 Sharda Motor Industries and its competitors. For the Vehicles & Parts industry, the median ROA % is 2.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sharda Motor Industries's current ROA % is 17.20%, which is 19% above median its own 10-year median of 14.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sharda Motor Industries stock overvalued right now?
Based on GuruFocus' analysis, Sharda Motor Industries (NSE:SHARDAMOTR) is currently considered Fairly Valued. The stock's GF Value™ is ₹925.16, compared to a current price of ₹869.00 — trading 6.1% below its estimated fair value. The current ROA % is 17.20%, which is 19% above median its 10-year median of 14.40 and 483.1% above the Vehicles & Parts industry median of 2.95. Sharda Motor Industries' overall GF Score™ is 91/100. 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 Sharda Motor Industries (NSE:SHARDAMOTR), the current ROA % is 17.20% as of Dec. 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.
Is Sharda Motor Industries (NSE:SHARDAMOTR) Overvalued in 2026?
Based on GuruFocus' analysis, Sharda Motor Industries stock appears to be undervalued.
The current stock price of ₹869.00 is trading 6.1% below its estimated GF Value™ of ₹925.16.
GuruFocus considers Sharda Motor Industries to be Fairly Valued.
Key valuation signals for NSE:SHARDAMOTR:
ROA %: 17.20% (19% above median its 10-year median of 14.40)
GF Value™: ₹925.16 vs. price of ₹869.00 (6.1% below fair value)
Industry Position: 483.1% above the Vehicles & Parts median (#21 of 1335)
No single metric tells the full story. See the NSE:SHARDAMOTR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sharda Motor Industries Ltd is engaged in the manufacturing and assembly of auto components and white goods components. Its product portfolio includes exhaust systems, catalytic converters, suspension systems, sheet metal components, and plastic parts for the automotive and white goods industries. It operates in a single segment which is manufacturing and trading of auto component parts. Geographically, the company caters to both Indian and international markets and derives a majority of its revenue from its business in India.
91GF Score
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