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 Conglomerates subindustry, Carborundum Universal'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.
Carborundum Universal ROE % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Carborundum Universal's ROE % distribution charts can be found below:
* The bar in red indicates where Carborundum Universal'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.
Carborundum Universal (BOM:513375) has a ROE % of -1.80% 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 Carborundum Universal and its competitors. Over the past decade, Carborundum Universal's ROE % has ranged from 5.23 to 15.97. According to the industry distribution chart, Carborundum Universal ranks #299 out of 561 companies in the Conglomerates industry, placing it in the top 53.3%.
Is Carborundum Universal's ROE % too high?
Carborundum Universal's current ROE % is -1.80%. Over the past 10 years, this metric has ranged from a low of 5.23 to a high of 15.97. Based on the distribution chart, Carborundum Universal ranks #299 out of 561 companies in the Conglomerates industry, which is below the industry midpoint. Overall, Carborundum Universal has a GF Score™ of 93/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Carborundum Universal's ROE % compare to HON and MMM?
According to the Conglomerates industry distribution chart, Carborundum Universal ranks #299 out of 561 companies for ROE %. This places Carborundum Universal in the lower half of its industry. The industry median ROE % is 6.27. Historically, Carborundum Universal's own ROE % has ranged from 5.23 to 15.97 over the past decade. 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 Conglomerates company?
The median ROE % among Conglomerates companies is 6.27, based on 561 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. 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 Carborundum Universal and its competitors. For the Conglomerates industry, the median ROE % is 6.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Carborundum Universal's current ROE % is -1.80%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Carborundum Universal stock overvalued right now?
Based on GuruFocus' analysis, Carborundum Universal (BOM:513375) is currently considered Fairly Valued. The stock's GF Value™ is ₹1,254.94, compared to a current price of ₹1,145.55 — trading 8.7% below its estimated fair value. The current ROE % is -1.80%. Carborundum Universal's overall GF Score™ is 93/100 with 9 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 Carborundum Universal (BOM:513375), the current ROE % is -1.80% 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 Carborundum Universal (BOM:513375) Overvalued in 2026?
Based on GuruFocus' analysis, Carborundum Universal stock appears to be undervalued.
The current stock price of ₹1,145.55 is trading 8.7% below its estimated GF Value™ of ₹1,254.94.
GuruFocus considers Carborundum Universal to be Fairly Valued.
Key valuation signals for BOM:513375:
ROE %: -1.80%
GF Value™: ₹1,254.94 vs. price of ₹1,145.55 (8.7% below fair value)
No single metric tells the full story. See the BOM:513375 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Carborundum Universal Ltd is an investment holding company. Along with its subsidiaries, it mainly provides solutions predominantly for industrial manufacturing needs by developing, manufacturing, and marketing products using the properties of materials known as electrominerals. The company's reportable business segments are; Surface engineering (material removal, cutting, polishing) known as Abrasives; Ceramics; Electrominerals; Power; IT services; and others. Maximum revenue is derived from the Abrasives segment which is comprised of bonded, coated, processed cloth, polymers, power tools, and coolants. The company generates maximum revenue through exports and the rest from its business in India.
93GF Score
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