ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
* 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 Communication Equipment subindustry, Punjab Communications's ROE %, along with its competitors' market caps and ROE % 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.
Punjab Communications ROE % vs Hardware Industry
For the Hardware industry and Technology sector, Punjab Communications's ROE % distribution charts can be found below:
* The bar in red indicates where Punjab Communications's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder equity 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.
ROE % is displayed in the 30-year financial page.
Punjab Communications (BOM:500346) has a ROE % of 3.99% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Punjab Communications and its competitors. According to the industry distribution chart, Punjab Communications ranks #729 out of 2425 companies in the Hardware industry, placing it in the top 30.1%.
Is Punjab Communications' ROE % too high?
Punjab Communications' current ROE % is 3.99%. The Hardware industry median ROE % is 4.66. Punjab Communications' value of 3.99% is 14.4% below this industry median. Based on the distribution chart, Punjab Communications ranks #729 out of 2425 companies in the Hardware industry, which is above the industry midpoint. Overall, Punjab Communications has a GF Score™ of 56/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Punjab Communications' ROE % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Punjab Communications ranks #729 out of 2425 companies for ROE %. This puts Punjab Communications in the upper half of its industry. The industry median ROE % is 4.66. Punjab Communications' value of 3.99% is 14.4% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Hardware company?
The median ROE % among Hardware companies is 4.66, based on 2,425 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Punjab Communications's current ROE % of 3.99% is 14.4% below 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Punjab Communications and its competitors. For the Hardware industry, the median ROE % is 4.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Punjab Communications's current ROE % is 3.99%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Punjab Communications stock overvalued right now?
Based on GuruFocus' analysis, Punjab Communications (BOM:500346) is currently considered Possible Value Trap. The stock's GF Value™ is ₹88.03, compared to a current price of ₹51.49 — trading 41.5% below its estimated fair value. The current ROE % is 3.99% and 14.4% below the Hardware industry median of 4.66. Punjab Communications' overall GF Score™ is 56/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Punjab Communications (BOM:500346), the current ROE % is 3.99% 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 Punjab Communications (BOM:500346) Overvalued in 2026?
Based on GuruFocus' analysis, Punjab Communications stock appears to be undervalued.
The current stock price of ₹51.49 is trading 41.5% below its estimated GF Value™ of ₹88.03.
GuruFocus considers Punjab Communications to be Possible Value Trap.
Key valuation signals for BOM:500346:
ROE %: 3.99%
GF Value™: ₹88.03 vs. price of ₹51.49 (41.5% below fair value)
Industry Position: 14.4% below the Hardware median (#729 of 2425)
No single metric tells the full story. See the BOM:500346 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Punjab Communications Ltd is a Telecom and IT equipment and solution provider. Its activities span across various areas such as; Telecom equipment manufacturing, IT and Software Solutions, Turnkey Projects, and Repair and Maintenance. Its product portfolio includes power line carrier communication, line matching unit, control communication equipment, and drop multiplexer among others. The company also provides contract manufacturing services, IT solutions, and takes up turnkey projects, involving installation, commissioning, and maintenance of complete range of telecommunications equipment on a pan-India level. It operates in a single segment which is the manufacturing of telecom products.
56GF Score
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