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Kennametal IndiaBOM:505890 -0.20%90 ROE % is 25.63% as of Mar. 2026, which is 97% above its 10-year median of 12.99. GuruFocus rates BOM:505890 with a GF Score™ of 90/100 and a GF Value™ of ₹2,873.59 (Fairly Valued). The stock has 1 warning sign investors should review. Among 3,005 Industrial Products companies, Kennametal India ranks better than 87.12% on this metric.
The historical rank and industry rank for Kennametal India's ROE % or its related term are showing as below:
BOM:505890'
s ROE % Range Over the Past 10 Years
Min: 5.63 Med: 12.99 Max: 18.8
Current: 17.84
During the past 13 years, Kennametal India's highest ROE % was 18.80%. The lowest was 5.63%. And the median was 12.99%.
BOM:505890's ROE % is ranked better than 87.12% of 3005
companies
in the Industrial Products industry
Industry Median: 5.91
vs BOM:505890: 17.84
Kennametal India (BOM:505890) 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.
Kennametal India ROE % Related Terms
Kennametal India ROE % Historical Data
* Premium members only.
The historical data trend for Kennametal India'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 Tools & Accessories subindustry, Kennametal India'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.
Kennametal India ROE % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Kennametal India's ROE % distribution charts can be found below:
* The bar in red indicates where Kennametal India'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.
Kennametal India (BOM:505890) has a ROE % of 25.63% 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 Kennametal India and its competitors. This is 97% above median its historical median of 12.99. Over the past decade, Kennametal India's ROE % has ranged from 5.63 to 18.80. According to the industry distribution chart, Kennametal India ranks #387 out of 3005 companies in the Industrial Products industry, placing it in the top 12.9%.
Is Kennametal India's ROE % too high?
Kennametal India's current ROE % of 25.63% is 97% above median its 10-year median of 12.99. Over the past 10 years, this metric has ranged from a low of 5.63 to a high of 18.80. The Industrial Products industry median ROE % is 5.91. Kennametal India's value of 25.63% is 333.7% above this industry median. Based on the distribution chart, Kennametal India ranks #387 out of 3005 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Kennametal India has a GF Score™ of 90/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Kennametal India's ROE % compare to SNA and RBC?
According to the Industrial Products industry distribution chart, Kennametal India ranks #387 out of 3005 companies for ROE %. This places Kennametal India in the top 13% of its industry — outperforming the majority of peers. The industry median ROE % is 5.91. Kennametal India's value of 25.63% is 333.7% above this benchmark. Historically, Kennametal India's own ROE % has ranged from 5.63 to 18.80 over the past decade. While the company's 10-year median is 12.99 vs. the industry median of 5.91, Kennametal India 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 an Industrial Products company?
The median ROE % among Industrial Products companies is 5.91, based on 3,005 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. Kennametal India's current ROE % of 25.63% is 333.7% 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 Kennametal India and its competitors. For the Industrial Products industry, the median ROE % is 5.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kennametal India's current ROE % is 25.63%, which is 97% above median its own 10-year median of 12.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kennametal India stock overvalued right now?
Based on GuruFocus' analysis, Kennametal India (BOM:505890) is currently considered Fairly Valued. The stock's GF Value™ is ₹2,873.59, compared to a current price of ₹2,880.10 — trading 0.2% above its estimated fair value. The current ROE % is 25.63%, which is 97% above median its 10-year median of 12.99 and 333.7% above the Industrial Products industry median of 5.91. Kennametal India's overall GF Score™ is 90/100 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 Kennametal India (BOM:505890), the current ROE % is 25.63% 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 Kennametal India (BOM:505890) Overvalued in 2026?
Based on GuruFocus' analysis, Kennametal India stock appears to be overvalued.
The current stock price of ₹2,880.10 is trading 0.2% above its estimated GF Value™ of ₹2,873.59.
GuruFocus considers Kennametal India to be Fairly Valued.
Key valuation signals for BOM:505890:
ROE %: 25.63% (97% above median its 10-year median of 12.99)
GF Value™: ₹2,873.59 vs. price of ₹2,880.10 (0.2% above fair value)
Industry Position: 333.7% above the Industrial Products median (#387 of 3005)
No single metric tells the full story. See the BOM:505890 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kennametal India Ltd is engaged in the manufacturing and trading of hard metal products and machine tools, also known as machining solutions, serving both domestic and international markets. It operates through two main segments, the Machining Solutions Group and Hard Metal Products. The Machining Solutions Group's sales include machines, fixtures, spare parts, and after-sales services. The Hard Metal Products segment is the key revenue driver, offering metal cutting tools, tooling systems, and wear-resistant components for various industries such as automotive, aerospace, energy, and engineering. The company's operations are mainly based in India, with a presence in Germany, the USA, and China, and the majority of its revenue comes from India.
90GF Score
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