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, Privi Speciality Chemicals'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.
Privi Speciality Chemicals ROE % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Privi Speciality Chemicals's ROE % distribution charts can be found below:
* The bar in red indicates where Privi Speciality Chemicals'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.
Privi Speciality Chemicals (BOM:530117) has a ROE % of 26.54% 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 Privi Speciality Chemicals and its competitors. This is 76% above median its historical median of 15.11. Over the past decade, Privi Speciality Chemicals' ROE % has ranged from 2.71 to 26.16. According to the industry distribution chart, Privi Speciality Chemicals ranks #57 out of 1580 companies in the Chemicals industry, placing it in the top 3.6%.
Is Privi Speciality Chemicals' ROE % too high?
Privi Speciality Chemicals' current ROE % of 26.54% is 76% above median its 10-year median of 15.11. Over the past 10 years, this metric has ranged from a low of 2.71 to a high of 26.16. The Chemicals industry median ROE % is 5.21. Privi Speciality Chemicals' value of 26.54% is 409.9% above this industry median. Based on the distribution chart, Privi Speciality Chemicals ranks #57 out of 1580 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Privi Speciality Chemicals has a GF Score™ of 82/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Privi Speciality Chemicals' ROE % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Privi Speciality Chemicals ranks #57 out of 1580 companies for ROE %. This places Privi Speciality Chemicals in the top 4% of its industry — outperforming the majority of peers. The industry median ROE % is 5.21. Privi Speciality Chemicals' value of 26.54% is 409.9% above this benchmark. Historically, Privi Speciality Chemicals' own ROE % has ranged from 2.71 to 26.16 over the past decade. While the company's 10-year median is 15.11 vs. the industry median of 5.21, Privi Speciality Chemicals 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 Chemicals company?
The median ROE % among Chemicals companies is 5.21, 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. Privi Speciality Chemicals's current ROE % of 26.54% is 409.9% 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 Privi Speciality Chemicals and its competitors. For the Chemicals industry, the median ROE % is 5.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Privi Speciality Chemicals's current ROE % is 26.54%, which is 76% above median its own 10-year median of 15.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Privi Speciality Chemicals stock overvalued right now?
Based on GuruFocus' analysis, Privi Speciality Chemicals (BOM:530117) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹2,386.00, compared to a current price of ₹3,643.65 — trading 52.7% above its estimated fair value. The current ROE % is 26.54%, which is 76% above median its 10-year median of 15.11 and 409.9% above the Chemicals industry median of 5.21. Privi Speciality Chemicals' overall GF Score™ is 82/100 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 Privi Speciality Chemicals (BOM:530117), the current ROE % is 26.54% 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 Privi Speciality Chemicals (BOM:530117) Overvalued in 2026?
Based on GuruFocus' analysis, Privi Speciality Chemicals stock appears to be overvalued.
The current stock price of ₹3,643.65 is trading 52.7% above its estimated GF Value™ of ₹2,386.00.
GuruFocus considers Privi Speciality Chemicals to be Significantly Overvalued.
Key valuation signals for BOM:530117:
ROE %: 26.54% (76% above median its 10-year median of 15.11)
GF Value™: ₹2,386.00 vs. price of ₹3,643.65 (52.7% above fair value)
Industry Position: 409.9% above the Chemicals median (#57 of 1580)
No single metric tells the full story. See the BOM:530117 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Privi Speciality Chemicals Ltd is engaged in the manufacturing of Speciality Oleo Chemicals, Intermediate Neutraceuticals, and Aromatic Chemicals. Geographically, it derives the majority of its revenues from international markets. It operates in a single segment the Aromatic chemicals segment. Some of its products include Alpha Damascone, Amber Fleur, Citronellyl Acetate, Tetrahydrogeranyl Acetate, Gamma Methyl Ionone, Methyl Ionone, Natural Concentrated Sterols, Dimer Acid, Distilled Fatty Acid, and others.
82GF Score
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