Ashok LeylandBOM:500477 +1.51%82 ROE % is 36.25% as of Mar. 2026, which is 42% above its 10-year median of 25.61. GuruFocus rates BOM:500477 with a GF Score™ of 82/100 and a GF Value™ of ₹128.98 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 204 Farm & Heavy Construction Machinery companies, Ashok Leyland ranks better than 92.65% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Ashok Leyland's annualized net income for the quarter that ended in Mar. 2026 was ₹51,628 Mil. Ashok Leyland's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was ₹142,417 Mil. Therefore, Ashok Leyland's annualized ROE % for the quarter that ended in Mar. 2026 was 36.25%.
The historical rank and industry rank for Ashok Leyland's ROE % or its related term are showing as below:
BOM:500477'
s ROE % Range Over the Past 10 Years
Min: -4.73 Med: 25.61 Max: 29.26
Current: 26.66
During the past 13 years, Ashok Leyland's highest ROE % was 29.26%. The lowest was -4.73%. And the median was 25.61%.
BOM:500477's ROE % is ranked better than 92.65% of 204
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 7.315
vs BOM:500477: 26.66
Ashok Leyland (BOM:500477) ROE % Explanation
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.
Ashok Leyland ROE % Related Terms
Ashok Leyland ROE % Historical Data
* Premium members only.
The historical data trend for Ashok Leyland's ROE % 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 Farm & Heavy Construction Machinery subindustry, Ashok Leyland'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.
Ashok Leyland ROE % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Ashok Leyland's ROE % distribution charts can be found below:
* The bar in red indicates where Ashok Leyland'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.
Ashok Leyland (BOM:500477) has a ROE % of 36.25% 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 Ashok Leyland and its competitors. This is 42% above median its historical median of 25.61. According to the industry distribution chart, Ashok Leyland ranks #15 out of 204 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 7.4%.
Is Ashok Leyland's ROE % too high?
Ashok Leyland's current ROE % of 36.25% is 42% above median its 10-year median of 25.61. The Farm & Heavy Construction Machinery industry median ROE % is 7.32. Ashok Leyland's value of 36.25% is 395.6% above this industry median. Based on the distribution chart, Ashok Leyland ranks #15 out of 204 companies in the Farm & Heavy Construction Machinery industry, which is in the top quartile — a strong position relative to peers. Overall, Ashok Leyland has a GF Score™ of 82/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ashok Leyland's ROE % compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Ashok Leyland ranks #15 out of 204 companies for ROE %. This places Ashok Leyland in the top 7% of its industry — outperforming the majority of peers. The industry median ROE % is 7.32. Ashok Leyland's value of 36.25% is 395.6% above this benchmark. While the company's 10-year median is 25.61 vs. the industry median of 7.32, Ashok Leyland 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 ROE % for a Farm & Heavy Construction Machinery company?
The median ROE % among Farm & Heavy Construction Machinery companies is 7.32, based on 204 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. Ashok Leyland's current ROE % of 36.25% is 395.6% 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 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 Ashok Leyland and its competitors. For the Farm & Heavy Construction Machinery industry, the median ROE % is 7.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ashok Leyland's current ROE % is 36.25%, which is 42% above median its own 10-year median of 25.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ashok Leyland stock overvalued right now?
Based on GuruFocus' analysis, Ashok Leyland (BOM:500477) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹128.98, compared to a current price of ₹164.75 — trading 27.7% above its estimated fair value. The current ROE % is 36.25%, which is 42% above median its 10-year median of 25.61 and 395.6% above the Farm & Heavy Construction Machinery industry median of 7.32. Ashok Leyland's overall GF Score™ is 82/100 with 1 warning sign 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 Ashok Leyland (BOM:500477), the current ROE % is 36.25% 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 Ashok Leyland (BOM:500477) Overvalued in 2026?
Based on GuruFocus' analysis, Ashok Leyland stock appears to be overvalued.
The current stock price of ₹164.75 is trading 27.7% above its estimated GF Value™ of ₹128.98.
GuruFocus considers Ashok Leyland to be Modestly Overvalued.
Key valuation signals for BOM:500477:
ROE %: 36.25% (42% above median its 10-year median of 25.61)
GF Value™: ₹128.98 vs. price of ₹164.75 (27.7% above fair value)
Industry Position: 395.6% above the Farm & Heavy Construction Machinery median (#15 of 204)
No single metric tells the full story. See the BOM:500477 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ashok Leyland Ltd is an automobile manufacturing company. The company manufactures commercial vehicles, engines, spare parts, and accessories, with the vast majority of revenue being derived from commercial vehicle sales. It produces and sells vehicles across different categories such as Trucks, Buses, Light Commercial Vehicles, and Defence. The company's operating segments are; Commercial vehicles, and Financial services. Geographically, it derives the majority revenue within India and the rest from other markets.
82GF Score
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