Kothari Fermentation And Biochem (BOM:507474) ROE %: 9.44% (As of Mar. 2026) — 94% Above Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

BOM:507474 Kothari Fermentation And Biochem Ltd BOM:507474
57 GF Score
Price ₹46.92
GF Value ₹72.93
Valuation Possible Value Trap
! 4 Warning Signs
View Full Analysis

What is Kothari Fermentation And Biochem ROE %?

Kothari Fermentation And Biochem BOM:507474 +1.19% 57 ROE % is 9.44% as of Mar. 2026, which is 94% above its 10-year median of 4.87. GuruFocus rates BOM:507474 with a GF Score™ of 57/100 and a GF Value™ of ₹72.93 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 1,923 Consumer Packaged Goods companies, Kothari Fermentation And Biochem ranks worse than 82.94% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Kothari Fermentation And Biochem's annualized net income for the quarter that ended in Mar. 2026 was ₹51 Mil. Kothari Fermentation And Biochem's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was ₹539 Mil. Therefore, Kothari Fermentation And Biochem's annualized ROE % for the quarter that ended in Mar. 2026 was 9.44%.

The historical rank and industry rank for Kothari Fermentation And Biochem's ROE % or its related term are showing as below:

BOM:507474' s ROE % Range Over the Past 10 Years
Min: -8.41   Med: 4.87   Max: 19.96
Current: -6.09

During the past 13 years, Kothari Fermentation And Biochem's highest ROE % was 19.96%. The lowest was -8.41%. And the median was 4.87%.

BOM:507474's ROE % is ranked worse than
82.94% of 1923 companies
in the Consumer Packaged Goods industry
Industry Median: 6.81 vs BOM:507474: -6.09

Kothari Fermentation And Biochem  (BOM:507474) 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:

ROE %(Q: Mar. 2026 )
=Net Income/Total Stockholders Equity
=50.904/539.491
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(50.904 / 1298.72)*(1298.72 / 1265.472)*(1265.472 / 539.491)
=Net Margin %*Asset Turnover*Equity Multiplier
=3.92 %*1.0263*2.3457
=ROA %*Equity Multiplier
=4.02 %*2.3457
=9.44 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Mar. 2026 )
=Net Income/Total Stockholders Equity
=50.904/539.491
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (50.904 / 31.988) * (31.988 / 46.348) * (46.348 / 1298.72) * (1298.72 / 1265.472) * (1265.472 / 539.491)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.5913 * 0.6902 * 3.57 % * 1.0263 * 2.3457
=9.44 %

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.


Kothari Fermentation And Biochem ROE % Related Terms


Kothari Fermentation And Biochem ROE % Historical Data

* Premium members only.

The historical data trend for Kothari Fermentation And Biochem'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.

Kothari Fermentation And Biochem ROE % Chart

Kothari Fermentation And Biochem Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.51 0.32 -8.41 1.44 -5.41

Kothari Fermentation And Biochem Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.43 -7.95 -23.54 -2.89 9.44

BOM:507474 vs ADM, BG, TSN: ROE % Comparison

For the Farm Products subindustry, Kothari Fermentation And Biochem'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.


Kothari Fermentation And Biochem ROE % vs Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Kothari Fermentation And Biochem's ROE % distribution charts can be found below:

* The bar in red indicates where Kothari Fermentation And Biochem's ROE % falls into.


BOM:507474
57GF Score
Kothari Fermentation And Biochem Ltd BOM:507474
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Kothari Fermentation And Biochem ROE % Calculation

Kothari Fermentation And Biochem's annualized ROE % for the fiscal year that ended in Mar. 2026 is calculated as

ROE %=Net Income (A: Mar. 2026 )/( (Total Stockholders Equity (A: Mar. 2025 )+Total Stockholders Equity (A: Mar. 2026 ))/ count )
=-29.893/( (565.714+539.491)/ 2 )
=-29.893/552.6025
=-5.41 %

Kothari Fermentation And Biochem's annualized ROE % for the quarter that ended in Mar. 2026 is calculated as

ROE %=Net Income (Q: Mar. 2026 )/( (Total Stockholders Equity (Q: Dec. 2025 )+Total Stockholders Equity (Q: Mar. 2026 ))/ count )
=50.904/( (0+539.491)/ 1 )
=50.904/539.491
=9.44 %

* 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.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of 9.44% mean?
Kothari Fermentation And Biochem (BOM:507474) has a ROE % of 9.44% 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 Kothari Fermentation And Biochem and its competitors. This is 94% above median its historical median of 4.87. According to the industry distribution chart, Kothari Fermentation And Biochem ranks #1595 out of 1923 companies in the Consumer Packaged Goods industry, placing it in the top 82.9%.
Is Kothari Fermentation And Biochem's ROE % too high?
Kothari Fermentation And Biochem's current ROE % of 9.44% is 94% above median its 10-year median of 4.87. The Consumer Packaged Goods industry median ROE % is 6.81. Kothari Fermentation And Biochem's value of 9.44% is 38.6% above this industry median. Based on the distribution chart, Kothari Fermentation And Biochem ranks #1595 out of 1923 companies in the Consumer Packaged Goods industry, which is in the bottom quartile relative to peers. Overall, Kothari Fermentation And Biochem has a GF Score™ of 57/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Kothari Fermentation And Biochem's ROE % compare to ADM and BG?
According to the Consumer Packaged Goods industry distribution chart, Kothari Fermentation And Biochem ranks #1595 out of 1923 companies for ROE %. This places Kothari Fermentation And Biochem in the lower half of its industry. The industry median ROE % is 6.81. Kothari Fermentation And Biochem's value of 9.44% is 38.6% above this benchmark. While the company's 10-year median is 4.87 vs. the industry median of 6.81, Kothari Fermentation And Biochem 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 Consumer Packaged Goods company?
The median ROE % among Consumer Packaged Goods companies is 6.81, based on 1,923 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. Kothari Fermentation And Biochem's current ROE % of 9.44% is 38.6% 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 Kothari Fermentation And Biochem and its competitors. For the Consumer Packaged Goods industry, the median ROE % is 6.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kothari Fermentation And Biochem's current ROE % is 9.44%, which is 94% above median its own 10-year median of 4.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kothari Fermentation And Biochem stock overvalued right now?
Based on GuruFocus' analysis, Kothari Fermentation And Biochem (BOM:507474) is currently considered Possible Value Trap. The stock's GF Value™ is ₹72.93, compared to a current price of ₹46.92 — trading 35.7% below its estimated fair value. The current ROE % is 9.44%, which is 94% above median its 10-year median of 4.87 and 38.6% above the Consumer Packaged Goods industry median of 6.81. Kothari Fermentation And Biochem's overall GF Score™ is 57/100 with 4 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 Kothari Fermentation And Biochem (BOM:507474), the current ROE % is 9.44% 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 Kothari Fermentation And Biochem (BOM:507474) Overvalued in 2026?

Based on GuruFocus' analysis, Kothari Fermentation And Biochem stock appears to be undervalued. The current stock price of ₹46.92 is trading 35.7% below its estimated GF Value™ of ₹72.93. GuruFocus considers Kothari Fermentation And Biochem to be Possible Value Trap.

Key valuation signals for BOM:507474:

  • ROE %: 9.44% (94% above median its 10-year median of 4.87)
  • GF Value™: ₹72.93 vs. price of ₹46.92 (35.7% below fair value)
  • GF Score™: 57/100 with 4 warning signs
  • Industry Position: 38.6% above the Consumer Packaged Goods median (#1595 of 1923)

No single metric tells the full story. See the BOM:507474 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Kothari Fermentation And Biochem Business Description

Address Saket, 16, 1st Floor, Community Centre, New Delhi, IND, 110017
Kothari Fermentation And Biochem Ltd is a company that is engaged in the business of manufacturing fresh yeast, active dried yeast, instant dried yeast, inactive dried yeast, live yeast, mono-oligosaccharides, yeast extract powder, and distiller dried yeast. The company markets its products under Sunrise, KF, Super Fast Instant Yeast, Alcomax Distiller's Instant Yeast, and Four Seasons brands. In addition to its own brands, the company also supplies instant yeast products to prominent import houses across India, which are marketed under their respective private labels. It operates in a single business segment, Yeast, and has also expanded into cattle feed products.
57GF Score

Get the complete analysis for BOM:507474

ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹46.92
Price
₹72.93
GF Value