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 Building Materials subindustry, Nilachal Refractories'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.
Nilachal Refractories ROE % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Nilachal Refractories's ROE % distribution charts can be found below:
* The bar in red indicates where Nilachal Refractories'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.
* Note that if the average Total Stockholders Equity is zero or negative, then ROE % would be considered meaningless and hence not be calculated.
Nilachal Refractories (BOM:502294) has a ROE % of 0.00% 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 Nilachal Refractories and its competitors. According to the industry distribution chart, Nilachal Refractories ranks #999999 out of 403 companies in the Building Materials industry.
Is Nilachal Refractories' ROE % too high?
Nilachal Refractories' current ROE % is 0.00%. Based on the distribution chart, Nilachal Refractories ranks #999999 out of 403 companies in the Building Materials industry, which is in the bottom quartile relative to peers. Overall, Nilachal Refractories has a GF Score™ of 55/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Nilachal Refractories' ROE % compare to CRH and VMC?
According to the Building Materials industry distribution chart, Nilachal Refractories ranks #999999 out of 403 companies for ROE %. This places Nilachal Refractories in the lower half of its industry. The industry median ROE % is 4.32. 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 Building Materials company?
The median ROE % among Building Materials companies is 4.32, based on 403 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. 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 Nilachal Refractories and its competitors. For the Building Materials industry, the median ROE % is 4.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nilachal Refractories's current ROE % is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nilachal Refractories stock overvalued right now?
Based on GuruFocus' analysis, Nilachal Refractories (BOM:502294) is currently considered Possible Value Trap. The stock's GF Value™ is ₹65.63, compared to a current price of ₹40.08 — trading 38.9% below its estimated fair value. The current ROE % is 0.00%. Nilachal Refractories' overall GF Score™ is 55/100 with 5 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 Nilachal Refractories (BOM:502294), the current ROE % is 0.00% 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 Nilachal Refractories (BOM:502294) Overvalued in 2026?
Based on GuruFocus' analysis, Nilachal Refractories stock appears to be undervalued.
The current stock price of ₹40.08 is trading 38.9% below its estimated GF Value™ of ₹65.63.
GuruFocus considers Nilachal Refractories to be Possible Value Trap.
Key valuation signals for BOM:502294:
ROE %: 0.00%
GF Value™: ₹65.63 vs. price of ₹40.08 (38.9% below fair value)
No single metric tells the full story. See the BOM:502294 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nilachal Refractories Ltd is an Indian company which is engaged in manufacturing of refractory motors, refractory bricks, refractory ceramic products and other. The product range of the company includes fireclay and high alumina refractories for blast furnaces, coke ovens steel teeming ladles, reheating furnaces, continuous casting units and refractories for non-ferrous industries, spall resistant bricks for severe thermal shock areas. It also manufactures alumina-based abrasion resistant bricks as well as thermal spalling resistant bricks for critical applications in ferrous and non-ferrous industries, high alumina abrasion resistant refractories and slide plate accessories.
55GF Score
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