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 Engineering & Construction subindustry, Walchandnagar Industries'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.
Walchandnagar Industries ROE % vs Construction Industry
For the Construction industry and Industrials sector, Walchandnagar Industries's ROE % distribution charts can be found below:
* The bar in red indicates where Walchandnagar Industries'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.
Walchandnagar Industries (BOM:507410) has a ROE % of 3.28% 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 Walchandnagar Industries and its competitors. According to the industry distribution chart, Walchandnagar Industries ranks #1415 out of 1737 companies in the Construction industry, placing it in the top 81.5%.
Is Walchandnagar Industries' ROE % too high?
Walchandnagar Industries' current ROE % is 3.28%. The Construction industry median ROE % is 6.72. Walchandnagar Industries' value of 3.28% is 51.2% below this industry median. Based on the distribution chart, Walchandnagar Industries ranks #1415 out of 1737 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, Walchandnagar Industries has a GF Score™ of 51/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Walchandnagar Industries' ROE % compare to PWR and FIX?
According to the Construction industry distribution chart, Walchandnagar Industries ranks #1415 out of 1737 companies for ROE %. This places Walchandnagar Industries in the lower half of its industry. The industry median ROE % is 6.72. Walchandnagar Industries' value of 3.28% is 51.2% below this benchmark. 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 Construction company?
The median ROE % among Construction companies is 6.72, based on 1,737 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. Walchandnagar Industries's current ROE % of 3.28% is 51.2% 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 Walchandnagar Industries and its competitors. For the Construction industry, the median ROE % is 6.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Walchandnagar Industries's current ROE % is 3.28%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Walchandnagar Industries stock overvalued right now?
Based on GuruFocus' analysis, Walchandnagar Industries (BOM:507410) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹169.33, compared to a current price of ₹243.55 — trading 43.8% above its estimated fair value. The current ROE % is 3.28% and 51.2% below the Construction industry median of 6.72. Walchandnagar Industries' overall GF Score™ is 51/100 with 3 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 Walchandnagar Industries (BOM:507410), the current ROE % is 3.28% 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 Walchandnagar Industries (BOM:507410) Overvalued in 2026?
Based on GuruFocus' analysis, Walchandnagar Industries stock appears to be overvalued.
The current stock price of ₹243.55 is trading 43.8% above its estimated GF Value™ of ₹169.33.
GuruFocus considers Walchandnagar Industries to be Significantly Overvalued.
Key valuation signals for BOM:507410:
ROE %: 3.28%
GF Value™: ₹169.33 vs. price of ₹243.55 (43.8% above fair value)
Industry Position: 51.2% below the Construction median (#1415 of 1737)
No single metric tells the full story. See the BOM:507410 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Walchandnagar Industries Ltd is an India-based company, that engages in manufacturing engineering products. It provides its services in the fields of Nuclear Power, Aerospace, Missile, Defence, Oil and Gas, Steam generation plants, Independent power projects, Turnkey Cement plants, Mineral Processing, Bulk Material handling, and Turnkey Sugar plants. It operates through the following segments: Heavy Engineering, Foundry and Machine Shop, and Others. The firm generates maximum revenue from the Heavy Engineering segment.
51GF Score
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