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Gemstone InvestmentsBOM:531137 -0.67%70 ROE % is 3.11% as of Mar. 2026, which is 99% above its 10-year median of 1.56. GuruFocus rates BOM:531137 with a GF Score™ of 70/100 and a GF Value™ of ₹2.77 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 531 Credit Services companies, Gemstone Investments ranks worse than 71% on this metric.
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 Credit Services subindustry, Gemstone Investments'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.
Gemstone Investments ROE % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Gemstone Investments's ROE % distribution charts can be found below:
* The bar in red indicates where Gemstone Investments'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.
Gemstone Investments (BOM:531137) has a ROE % of 3.11% 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 Gemstone Investments and its competitors. This is 99% above median its historical median of 1.56. Over the past decade, Gemstone Investments' ROE % has ranged from 0.88 to 3.40. According to the industry distribution chart, Gemstone Investments ranks #377 out of 531 companies in the Credit Services industry, placing it in the top 71%.
Is Gemstone Investments' ROE % too high?
Gemstone Investments' current ROE % of 3.11% is 99% above median its 10-year median of 1.56. Over the past 10 years, this metric has ranged from a low of 0.88 to a high of 3.40. The Credit Services industry median ROE % is 6.67. Gemstone Investments' value of 3.11% is 53.4% below this industry median. Based on the distribution chart, Gemstone Investments ranks #377 out of 531 companies in the Credit Services industry, which is below the industry midpoint. Overall, Gemstone Investments has a GF Score™ of 70/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Gemstone Investments' ROE % compare to V and MA?
According to the Credit Services industry distribution chart, Gemstone Investments ranks #377 out of 531 companies for ROE %. This places Gemstone Investments in the lower half of its industry. The industry median ROE % is 6.67. Gemstone Investments' value of 3.11% is 53.4% below this benchmark. Historically, Gemstone Investments' own ROE % has ranged from 0.88 to 3.40 over the past decade. While the company's 10-year median is 1.56 vs. the industry median of 6.67, Gemstone Investments 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 Credit Services company?
The median ROE % among Credit Services companies is 6.67, based on 531 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. Gemstone Investments's current ROE % of 3.11% is 53.4% 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 Gemstone Investments and its competitors. For the Credit Services industry, the median ROE % is 6.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gemstone Investments's current ROE % is 3.11%, which is 99% above median its own 10-year median of 1.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gemstone Investments stock overvalued right now?
Based on GuruFocus' analysis, Gemstone Investments (BOM:531137) is currently considered Possible Value Trap. The stock's GF Value™ is ₹2.77, compared to a current price of ₹1.49 — trading 46.2% below its estimated fair value. The current ROE % is 3.11%, which is 99% above median its 10-year median of 1.56 and 53.4% below the Credit Services industry median of 6.67. Gemstone Investments' overall GF Score™ is 70/100 with 6 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 Gemstone Investments (BOM:531137), the current ROE % is 3.11% 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 Gemstone Investments (BOM:531137) Overvalued in 2026?
Based on GuruFocus' analysis, Gemstone Investments stock appears to be undervalued.
The current stock price of ₹1.49 is trading 46.2% below its estimated GF Value™ of ₹2.77.
GuruFocus considers Gemstone Investments to be Possible Value Trap.
Key valuation signals for BOM:531137:
ROE %: 3.11% (99% above median its 10-year median of 1.56)
GF Value™: ₹2.77 vs. price of ₹1.49 (46.2% below fair value)
Industry Position: 53.4% below the Credit Services median (#377 of 531)
No single metric tells the full story. See the BOM:531137 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gemstone Investments Ltd is engaged in the non-banking finance business. The company caters to wholesale and retail traders, small-scale industries and small borrowers by the way of equity investments. It generates revenue from interest income.
70GF Score
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