Primo ChemicalsBOM:506852 -1.61%63 ROE % is 5.98% as of Mar. 2026, which is 13% below its 10-year median of 6.86. GuruFocus rates BOM:506852 with a GF Score™ of 63/100 and a GF Value™ of ₹46.52 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 1,580 Chemicals companies, Primo Chemicals ranks worse than 57.78% on this metric.
The historical rank and industry rank for Primo Chemicals's ROE % or its related term are showing as below:
BOM:506852'
s ROE % Range Over the Past 10 Years
Min: -52.78 Med: 6.86 Max: 109.64
Current: 3.86
During the past 13 years, Primo Chemicals's highest ROE % was 109.64%. The lowest was -52.78%. And the median was 6.86%.
BOM:506852's ROE % is ranked worse than 57.78% of 1580
companies
in the Chemicals industry
Industry Median: 5.195
vs BOM:506852: 3.86
Primo Chemicals (BOM:506852) 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.
Primo Chemicals ROE % Related Terms
Primo Chemicals ROE % Historical Data
* Premium members only.
The historical data trend for Primo Chemicals'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 Chemicals subindustry, Primo Chemicals'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.
Primo Chemicals ROE % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Primo Chemicals's ROE % distribution charts can be found below:
* The bar in red indicates where Primo Chemicals'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.
Primo Chemicals (BOM:506852) has a ROE % of 5.98% 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 Primo Chemicals and its competitors. This is 13% below median its historical median of 6.86. According to the industry distribution chart, Primo Chemicals ranks #913 out of 1580 companies in the Chemicals industry, placing it in the top 57.8%.
Is Primo Chemicals' ROE % too high?
Primo Chemicals' current ROE % of 5.98% is 13% below median its 10-year median of 6.86. The Chemicals industry median ROE % is 5.20. Primo Chemicals' value of 5.98% is 15.1% above this industry median. Based on the distribution chart, Primo Chemicals ranks #913 out of 1580 companies in the Chemicals industry, which is below the industry midpoint. Overall, Primo Chemicals has a GF Score™ of 63/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Primo Chemicals' ROE % compare to DOW?
According to the Chemicals industry distribution chart, Primo Chemicals ranks #913 out of 1580 companies for ROE %. This places Primo Chemicals in the lower half of its industry. The industry median ROE % is 5.20. Primo Chemicals' value of 5.98% is 15.1% above this benchmark. While the company's 10-year median is 6.86 vs. the industry median of 5.20, Primo Chemicals 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 Chemicals company?
The median ROE % among Chemicals companies is 5.20, based on 1,580 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. Primo Chemicals's current ROE % of 5.98% is 15.1% 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 Primo Chemicals and its competitors. For the Chemicals industry, the median ROE % is 5.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Primo Chemicals's current ROE % is 5.98%, which is 13% below median its own 10-year median of 6.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Primo Chemicals stock overvalued right now?
Based on GuruFocus' analysis, Primo Chemicals (BOM:506852) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹46.52, compared to a current price of ₹24.42 — trading 47.5% below its estimated fair value. The current ROE % is 5.98%, which is 13% below median its 10-year median of 6.86 and 15.1% above the Chemicals industry median of 5.20. Primo Chemicals' overall GF Score™ is 63/100 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 Primo Chemicals (BOM:506852), the current ROE % is 5.98% 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 Primo Chemicals (BOM:506852) Overvalued in 2026?
Based on GuruFocus' analysis, Primo Chemicals stock appears to be undervalued.
The current stock price of ₹24.42 is trading 47.5% below its estimated GF Value™ of ₹46.52.
GuruFocus considers Primo Chemicals to be Significantly Undervalued.
Key valuation signals for BOM:506852:
ROE %: 5.98% (13% below median its 10-year median of 6.86)
GF Value™: ₹46.52 vs. price of ₹24.42 (47.5% below fair value)
Industry Position: 15.1% above the Chemicals median (#913 of 1580)
No single metric tells the full story. See the BOM:506852 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Primo Chemicals Ltd is engaged in the manufacturing of chemicals. Its product portfolio includes Caustic Soda Lye and its by-products are Hydrochloric Acid, Liquid Chlorine, Sodium Hypochlorite, and Hydrogen gas. The company generates revenue from the sale of goods and trading sales.
63GF Score
Get the complete analysis for BOM:506852
ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
BOM:506852 has been successfully added to your 
