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 Chemicals subindustry, Dhoot Industrial Finance'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.
Dhoot Industrial Finance ROE % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Dhoot Industrial Finance's ROE % distribution charts can be found below:
* The bar in red indicates where Dhoot Industrial Finance'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.
Dhoot Industrial Finance (BOM:526971) has a ROE % of 3.82% 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 Dhoot Industrial Finance and its competitors. This is near median its historical median of 4.19. According to the industry distribution chart, Dhoot Industrial Finance ranks #901 out of 1580 companies in the Chemicals industry, placing it in the top 57%.
Is Dhoot Industrial Finance's ROE % too high?
Dhoot Industrial Finance's current ROE % of 3.82% is near median its 10-year median of 4.19. The Chemicals industry median ROE % is 5.20. Dhoot Industrial Finance's value of 3.82% is 26.5% below this industry median. Based on the distribution chart, Dhoot Industrial Finance ranks #901 out of 1580 companies in the Chemicals industry, which is below the industry midpoint. Overall, Dhoot Industrial Finance has a GF Score™ of 59/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Dhoot Industrial Finance's ROE % compare to DOW?
According to the Chemicals industry distribution chart, Dhoot Industrial Finance ranks #901 out of 1580 companies for ROE %. This places Dhoot Industrial Finance in the lower half of its industry. The industry median ROE % is 5.20. Dhoot Industrial Finance's value of 3.82% is 26.5% below this benchmark. While the company's 10-year median is 4.19 vs. the industry median of 5.20, Dhoot Industrial Finance 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. Dhoot Industrial Finance's current ROE % of 3.82% is 26.5% 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 Dhoot Industrial Finance 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. Dhoot Industrial Finance's current ROE % is 3.82%, which is near median its own 10-year median of 4.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dhoot Industrial Finance stock overvalued right now?
Based on GuruFocus' analysis, Dhoot Industrial Finance (BOM:526971) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹100.22, compared to a current price of ₹237.50 — trading 137% above its estimated fair value. The current ROE % is 3.82%, which is near median its 10-year median of 4.19 and 26.5% below the Chemicals industry median of 5.20. Dhoot Industrial Finance's overall GF Score™ is 59/100 with 8 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 Dhoot Industrial Finance (BOM:526971), the current ROE % is 3.82% 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 Dhoot Industrial Finance (BOM:526971) Overvalued in 2026?
Based on GuruFocus' analysis, Dhoot Industrial Finance stock appears to be overvalued.
The current stock price of ₹237.50 is trading 137% above its estimated GF Value™ of ₹100.22.
GuruFocus considers Dhoot Industrial Finance to be Significantly Overvalued.
Key valuation signals for BOM:526971:
ROE %: 3.82% (near median its 10-year median of 4.19)
GF Value™: ₹100.22 vs. price of ₹237.50 (137% above fair value)
Industry Position: 26.5% below the Chemicals median (#901 of 1580)
No single metric tells the full story. See the BOM:526971 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dhoot Industrial Finance Ltd is engaged in the trading activities of goods and share stocks and power generation. Its operating segments are; Trading and Others. Trading segment includes all trading activities of chemicals, nickel, and copper. The company generates maximum revenue from the Others segment which represents income generated in the form of dividends from investments, derivative profits, dividend income from securities held for trading, and others. Geographically, its operations are predominantly based in India.
59GF Score
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