Gujarat PetrosyntheseBOM:506858 +0.14%58 ROE % is 3.27% as of Mar. 2026, which is 27% below its 10-year median of 4.47. GuruFocus rates BOM:506858 with a GF Score™ of 58/100 and a GF Value™ of ₹83.70 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 1,580 Chemicals companies, Gujarat Petrosynthese ranks worse than 53.92% on this metric.
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 Specialty Chemicals subindustry, Gujarat Petrosynthese'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.
Gujarat Petrosynthese ROE % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Gujarat Petrosynthese's ROE % distribution charts can be found below:
* The bar in red indicates where Gujarat Petrosynthese'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.
Gujarat Petrosynthese (BOM:506858) has a ROE % of 3.27% 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 Gujarat Petrosynthese and its competitors. This is 27% below median its historical median of 4.47. According to the industry distribution chart, Gujarat Petrosynthese ranks #852 out of 1580 companies in the Chemicals industry, placing it in the top 53.9%.
Is Gujarat Petrosynthese's ROE % too high?
Gujarat Petrosynthese's current ROE % of 3.27% is 27% below median its 10-year median of 4.47. The Chemicals industry median ROE % is 5.20. Gujarat Petrosynthese's value of 3.27% is 37.1% below this industry median. Based on the distribution chart, Gujarat Petrosynthese ranks #852 out of 1580 companies in the Chemicals industry, which is below the industry midpoint. Overall, Gujarat Petrosynthese has a GF Score™ of 58/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Gujarat Petrosynthese's ROE % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Gujarat Petrosynthese ranks #852 out of 1580 companies for ROE %. This places Gujarat Petrosynthese in the lower half of its industry. The industry median ROE % is 5.20. Gujarat Petrosynthese's value of 3.27% is 37.1% below this benchmark. While the company's 10-year median is 4.47 vs. the industry median of 5.20, Gujarat Petrosynthese has consistently been below 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. Gujarat Petrosynthese's current ROE % of 3.27% is 37.1% below 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 Gujarat Petrosynthese 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. Gujarat Petrosynthese's current ROE % is 3.27%, which is 27% below median its own 10-year median of 4.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gujarat Petrosynthese stock overvalued right now?
Based on GuruFocus' analysis, Gujarat Petrosynthese (BOM:506858) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹83.70, compared to a current price of ₹57.87 — trading 30.9% below its estimated fair value. The current ROE % is 3.27%, which is 27% below median its 10-year median of 4.47 and 37.1% below the Chemicals industry median of 5.20. Gujarat Petrosynthese's overall GF Score™ is 58/100 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 Gujarat Petrosynthese (BOM:506858), the current ROE % is 3.27% 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 Gujarat Petrosynthese (BOM:506858) Overvalued in 2026?
Based on GuruFocus' analysis, Gujarat Petrosynthese stock appears to be undervalued.
The current stock price of ₹57.87 is trading 30.9% below its estimated GF Value™ of ₹83.70.
GuruFocus considers Gujarat Petrosynthese to be Significantly Undervalued.
Key valuation signals for BOM:506858:
ROE %: 3.27% (27% below median its 10-year median of 4.47)
GF Value™: ₹83.70 vs. price of ₹57.87 (30.9% below fair value)
Industry Position: 37.1% below the Chemicals median (#852 of 1580)
No single metric tells the full story. See the BOM:506858 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gujarat Petrosynthese Ltd is engaged in the business of manufacturing and selling polybutenes and their byproducts. The company offers polymer blends and alloys, specialty grade compounds, and engineering plastics. It serves electrical and electronics, automobile, textile, telecommunication, consumer goods, and light industries. The company's products include Modified ABS - Synolac, Modified PC - Synonate, Modified POM - Synol, Modified SAN - Synsan, Modified PC/PO - Synofin, Modified PC/ABS - Synonate, Modified PC/PBT - Synolate, Modified PP/EPDM - Synofin, and others.
58GF Score
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