Rathi Steel & PowerBOM:504903 +1.99%62 ROE % is 19.87% as of Mar. 2026, which is 85% above its 10-year median of 10.73. GuruFocus rates BOM:504903 with a GF Score™ of 62/100 and a GF Value™ of ₹33.25 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 618 Steel companies, Rathi Steel & Power ranks better than 73.46% on this metric.
The historical rank and industry rank for Rathi Steel & Power's ROE % or its related term are showing as below:
BOM:504903'
s ROE % Range Over the Past 10 Years
Min: 8.97 Med: 10.73 Max: 47.46
Current: 9.03
During the past 13 years, Rathi Steel & Power's highest ROE % was 47.46%. The lowest was 8.97%. And the median was 10.73%.
BOM:504903's ROE % is ranked better than 73.46% of 618
companies
in the Steel industry
Industry Median: 3.69
vs BOM:504903: 9.03
Rathi Steel & Power (BOM:504903) 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.
Rathi Steel & Power ROE % Related Terms
Rathi Steel & Power ROE % Historical Data
* Premium members only.
The historical data trend for Rathi Steel & Power'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 Steel subindustry, Rathi Steel & Power'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.
Rathi Steel & Power ROE % vs Steel Industry
For the Steel industry and Basic Materials sector, Rathi Steel & Power's ROE % distribution charts can be found below:
* The bar in red indicates where Rathi Steel & Power'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.
Rathi Steel & Power (BOM:504903) has a ROE % of 19.87% 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 Rathi Steel & Power and its competitors. This is 85% above median its historical median of 10.73. Over the past decade, Rathi Steel & Power's ROE % has ranged from 8.97 to 47.46. According to the industry distribution chart, Rathi Steel & Power ranks #164 out of 618 companies in the Steel industry, placing it in the top 26.5%.
Is Rathi Steel & Power's ROE % too high?
Rathi Steel & Power's current ROE % of 19.87% is 85% above median its 10-year median of 10.73. Over the past 10 years, this metric has ranged from a low of 8.97 to a high of 47.46. The Steel industry median ROE % is 3.69. Rathi Steel & Power's value of 19.87% is 438.5% above this industry median. Based on the distribution chart, Rathi Steel & Power ranks #164 out of 618 companies in the Steel industry, which is above the industry midpoint. Overall, Rathi Steel & Power has a GF Score™ of 62/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Rathi Steel & Power's ROE % compare to NUE and STLD?
According to the Steel industry distribution chart, Rathi Steel & Power ranks #164 out of 618 companies for ROE %. This puts Rathi Steel & Power in the upper half of its industry. The industry median ROE % is 3.69. Rathi Steel & Power's value of 19.87% is 438.5% above this benchmark. Historically, Rathi Steel & Power's own ROE % has ranged from 8.97 to 47.46 over the past decade. While the company's 10-year median is 10.73 vs. the industry median of 3.69, Rathi Steel & Power 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 Steel company?
The median ROE % among Steel companies is 3.69, based on 618 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. Rathi Steel & Power's current ROE % of 19.87% is 438.5% 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 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 Rathi Steel & Power and its competitors. For the Steel industry, the median ROE % is 3.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rathi Steel & Power's current ROE % is 19.87%, which is 85% above median its own 10-year median of 10.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rathi Steel & Power stock overvalued right now?
Based on GuruFocus' analysis, Rathi Steel & Power (BOM:504903) is currently considered Possible Value Trap. The stock's GF Value™ is ₹33.25, compared to a current price of ₹18.99 — trading 42.9% below its estimated fair value. The current ROE % is 19.87%, which is 85% above median its 10-year median of 10.73 and 438.5% above the Steel industry median of 3.69. Rathi Steel & Power's overall GF Score™ is 62/100 with 6 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 Rathi Steel & Power (BOM:504903), the current ROE % is 19.87% 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 Rathi Steel & Power (BOM:504903) Overvalued in 2026?
Based on GuruFocus' analysis, Rathi Steel & Power stock appears to be undervalued.
The current stock price of ₹18.99 is trading 42.9% below its estimated GF Value™ of ₹33.25.
GuruFocus considers Rathi Steel & Power to be Possible Value Trap.
Key valuation signals for BOM:504903:
ROE %: 19.87% (85% above median its 10-year median of 10.73)
GF Value™: ₹33.25 vs. price of ₹18.99 (42.9% below fair value)
Industry Position: 438.5% above the Steel median (#164 of 618)
No single metric tells the full story. See the BOM:504903 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rathi Steel & Power Ltd is engaged in manufacturing steel and steel-based products. Its products include rebars and wire rods which are used in all key concrete constructions such as buildings, bridges, reservoirs, roads, irrigation and power structures, dock and harbor structures, foundations, piles, and precast concrete.
62GF Score
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