Welspun EnterprisesBOM:532553 -1.27%87 ROE % is 19.01% as of Mar. 2026, which is 101% above its 10-year median of 9.45. GuruFocus rates BOM:532553 with a GF Score™ of 87/100 and a GF Value™ of ₹506.46 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 1,738 Construction companies, Welspun Enterprises ranks better 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.
Welspun Enterprises ROE % Related Terms
Welspun Enterprises ROE % Historical Data
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The historical data trend for Welspun Enterprises'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.
For the Engineering & Construction subindustry, Welspun Enterprises'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.
Welspun Enterprises ROE % vs Construction Industry
For the Construction industry and Industrials sector, Welspun Enterprises's ROE % distribution charts can be found below:
* The bar in red indicates where Welspun Enterprises'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.
Welspun Enterprises (BOM:532553) has a ROE % of 19.01% 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 Welspun Enterprises and its competitors. This is 101% above median its historical median of 9.45. Over the past decade, Welspun Enterprises' ROE % has ranged from 0.37 to 34.86. According to the industry distribution chart, Welspun Enterprises ranks #504 out of 1738 companies in the Construction industry, placing it in the top 29%.
Is Welspun Enterprises' ROE % too high?
Welspun Enterprises' current ROE % of 19.01% is 101% above median its 10-year median of 9.45. Over the past 10 years, this metric has ranged from a low of 0.37 to a high of 34.86. The Construction industry median ROE % is 6.69. Welspun Enterprises' value of 19.01% is 184.2% above this industry median. Based on the distribution chart, Welspun Enterprises ranks #504 out of 1738 companies in the Construction industry, which is above the industry midpoint. Overall, Welspun Enterprises has a GF Score™ of 87/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Welspun Enterprises' ROE % compare to PWR and FIX?
According to the Construction industry distribution chart, Welspun Enterprises ranks #504 out of 1738 companies for ROE %. This puts Welspun Enterprises in the upper half of its industry. The industry median ROE % is 6.69. Welspun Enterprises' value of 19.01% is 184.2% above this benchmark. Historically, Welspun Enterprises' own ROE % has ranged from 0.37 to 34.86 over the past decade. While the company's 10-year median is 9.45 vs. the industry median of 6.69, Welspun Enterprises 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 Construction company?
The median ROE % among Construction companies is 6.69, based on 1,738 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. Welspun Enterprises's current ROE % of 19.01% is 184.2% 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 Welspun Enterprises and its competitors. For the Construction industry, the median ROE % is 6.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Welspun Enterprises's current ROE % is 19.01%, which is 101% above median its own 10-year median of 9.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Welspun Enterprises stock overvalued right now?
Based on GuruFocus' analysis, Welspun Enterprises (BOM:532553) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹506.46, compared to a current price of ₹603.90 — trading 19.2% above its estimated fair value. The current ROE % is 19.01%, which is 101% above median its 10-year median of 9.45 and 184.2% above the Construction industry median of 6.69. Welspun Enterprises' overall GF Score™ is 87/100 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 Welspun Enterprises (BOM:532553), the current ROE % is 19.01% 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 Welspun Enterprises (BOM:532553) Overvalued in 2026?
Based on GuruFocus' analysis, Welspun Enterprises stock appears to be overvalued.
The current stock price of ₹603.90 is trading 19.2% above its estimated GF Value™ of ₹506.46.
GuruFocus considers Welspun Enterprises to be Modestly Overvalued.
Key valuation signals for BOM:532553:
ROE %: 19.01% (101% above median its 10-year median of 9.45)
GF Value™: ₹506.46 vs. price of ₹603.90 (19.2% above fair value)
Industry Position: 184.2% above the Construction median (#504 of 1738)
No single metric tells the full story. See the BOM:532553 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Welspun Enterprises Ltd is an India-based company, engaged in road transport, water, tunneling, and rehabilitation infrastructure development (Engineering, procurement and construction (EPC), Hybrid Annuity Model (HAM), and Build, Operate and Transfer (BOT) basis) and oil and gas exploration activities. It is also engaged in carrying out Operation and maintenance (O&M) activities. The company operates through the segments of Transport, Water, and Tunneling and Rehabilitation. The firm generates maximum revenue from the Transport segment.
87GF Score
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