Chennai Ferrous Industries (BOM:539011) ROE %: 14.26% (As of Mar. 2026) — 89% Above Median

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BOM:539011 Chennai Ferrous Industries Ltd BOM:539011
75 GF Score
Price ₹80.20
GF Value ₹91.43
Valuation Modestly Undervalued
! 6 Warning Signs
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What is Chennai Ferrous Industries ROE %?

Chennai Ferrous Industries BOM:539011 -2.05% 75 ROE % is 14.26% as of Mar. 2026, which is 89% above its 10-year median of 7.55. GuruFocus rates BOM:539011 with a GF Score™ of 75/100 and a GF Value™ of ₹91.43 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 619 Steel companies, Chennai Ferrous Industries ranks better than 63.33% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Chennai Ferrous Industries's annualized net income for the quarter that ended in Mar. 2026 was ₹79 Mil. Chennai Ferrous Industries's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was ₹554 Mil. Therefore, Chennai Ferrous Industries's annualized ROE % for the quarter that ended in Mar. 2026 was 14.26%.

The historical rank and industry rank for Chennai Ferrous Industries's ROE % or its related term are showing as below:

BOM:539011' s ROE % Range Over the Past 10 Years
Min: 5.98   Med: 7.55   Max: 157.92
Current: 6.31

During the past 13 years, Chennai Ferrous Industries's highest ROE % was 157.92%. The lowest was 5.98%. And the median was 7.55%.

BOM:539011's ROE % is ranked better than
63.33% of 619 companies
in the Steel industry
Industry Median: 3.74 vs BOM:539011: 6.31

Chennai Ferrous Industries  (BOM:539011) ROE % Explanation

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:

ROE %(Q: Mar. 2026 )
=Net Income/Total Stockholders Equity
=79.04/554.361
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(79.04 / 233.828)*(233.828 / 694.1)*(694.1 / 554.361)
=Net Margin %*Asset Turnover*Equity Multiplier
=33.8 %*0.3369*1.2521
=ROA %*Equity Multiplier
=11.39 %*1.2521
=14.26 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Mar. 2026 )
=Net Income/Total Stockholders Equity
=79.04/554.361
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (79.04 / -0.964) * (-0.964 / 2.532) * (2.532 / 233.828) * (233.828 / 694.1) * (694.1 / 554.361)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= -81.9917 * -0.3807 * 1.08 % * 0.3369 * 1.2521
=14.26 %

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.


Chennai Ferrous Industries ROE % Related Terms


Chennai Ferrous Industries ROE % Historical Data

* Premium members only.

The historical data trend for Chennai Ferrous Industries'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.

Chennai Ferrous Industries ROE % Chart

Chennai Ferrous Industries Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 157.92 7.55 5.98 8.01 6.29

Chennai Ferrous Industries Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.43 17.89 -1.07 -5.59 14.26

BOM:539011 vs NUE, STLD, RS: ROE % Comparison

For the Steel subindustry, Chennai Ferrous Industries'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.


Chennai Ferrous Industries ROE % vs Steel Industry

For the Steel industry and Basic Materials sector, Chennai Ferrous Industries's ROE % distribution charts can be found below:

* The bar in red indicates where Chennai Ferrous Industries's ROE % falls into.


BOM:539011
75GF Score
Chennai Ferrous Industries Ltd BOM:539011
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Chennai Ferrous Industries ROE % Calculation

Chennai Ferrous Industries's annualized ROE % for the fiscal year that ended in Mar. 2026 is calculated as

ROE %=Net Income (A: Mar. 2026 )/( (Total Stockholders Equity (A: Mar. 2025 )+Total Stockholders Equity (A: Mar. 2026 ))/ count )
=33.822/( (520.539+554.361)/ 2 )
=33.822/537.45
=6.29 %

Chennai Ferrous Industries's annualized ROE % for the quarter that ended in Mar. 2026 is calculated as

ROE %=Net Income (Q: Mar. 2026 )/( (Total Stockholders Equity (Q: Dec. 2025 )+Total Stockholders Equity (Q: Mar. 2026 ))/ count )
=79.04/( (0+554.361)/ 1 )
=79.04/554.361
=14.26 %

* 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.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of 14.26% mean?
Chennai Ferrous Industries (BOM:539011) has a ROE % of 14.26% 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 Chennai Ferrous Industries and its competitors. This is 89% above median its historical median of 7.55. Over the past decade, Chennai Ferrous Industries' ROE % has ranged from 5.98 to 157.92. According to the industry distribution chart, Chennai Ferrous Industries ranks #227 out of 619 companies in the Steel industry, placing it in the top 36.7%.
Is Chennai Ferrous Industries' ROE % too high?
Chennai Ferrous Industries' current ROE % of 14.26% is 89% above median its 10-year median of 7.55. Over the past 10 years, this metric has ranged from a low of 5.98 to a high of 157.92. The Steel industry median ROE % is 3.74. Chennai Ferrous Industries' value of 14.26% is 281.3% above this industry median. Based on the distribution chart, Chennai Ferrous Industries ranks #227 out of 619 companies in the Steel industry, which is above the industry midpoint. Overall, Chennai Ferrous Industries has a GF Score™ of 75/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Chennai Ferrous Industries' ROE % compare to NUE and STLD?
According to the Steel industry distribution chart, Chennai Ferrous Industries ranks #227 out of 619 companies for ROE %. This puts Chennai Ferrous Industries in the upper half of its industry. The industry median ROE % is 3.74. Chennai Ferrous Industries' value of 14.26% is 281.3% above this benchmark. Historically, Chennai Ferrous Industries' own ROE % has ranged from 5.98 to 157.92 over the past decade. While the company's 10-year median is 7.55 vs. the industry median of 3.74, Chennai Ferrous Industries 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 Steel company?
The median ROE % among Steel companies is 3.74, based on 619 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. Chennai Ferrous Industries's current ROE % of 14.26% is 281.3% 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 Chennai Ferrous Industries and its competitors. For the Steel industry, the median ROE % is 3.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chennai Ferrous Industries's current ROE % is 14.26%, which is 89% above median its own 10-year median of 7.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chennai Ferrous Industries stock overvalued right now?
Based on GuruFocus' analysis, Chennai Ferrous Industries (BOM:539011) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹91.43, compared to a current price of ₹80.20 — trading 12.3% below its estimated fair value. The current ROE % is 14.26%, which is 89% above median its 10-year median of 7.55 and 281.3% above the Steel industry median of 3.74. Chennai Ferrous Industries' overall GF Score™ is 75/100 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 Chennai Ferrous Industries (BOM:539011), the current ROE % is 14.26% 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 Chennai Ferrous Industries (BOM:539011) Overvalued in 2026?

Based on GuruFocus' analysis, Chennai Ferrous Industries stock appears to be undervalued. The current stock price of ₹80.20 is trading 12.3% below its estimated GF Value™ of ₹91.43. GuruFocus considers Chennai Ferrous Industries to be Modestly Undervalued.

Key valuation signals for BOM:539011:

  • ROE %: 14.26% (89% above median its 10-year median of 7.55)
  • GF Value™: ₹91.43 vs. price of ₹80.20 (12.3% below fair value)
  • GF Score™: 75/100 with 6 warning signs
  • Industry Position: 281.3% above the Steel median (#227 of 619)

No single metric tells the full story. See the BOM:539011 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Chennai Ferrous Industries Business Description

Address Madharapakkam Road, Survey No.180-183,190 & 191, Periya Obulapuram Village, Nagaraja kandigai, Thiruvallur District, Gummidipoondi, TN, IND, 601 201
Chennai Ferrous Industries Ltd, incorporated in 2010 and based in Gummidipoondi, Tamil Nadu, India, is engaged in the trading of iron and coal-related products. The company also operates the rental of its sponge iron plant. Its business activities includes providing steel-related commodities and services for metallurgical and industrial applications. The company has diversified its operations into coal trading activities. Chennai Ferrous serves customers prominently in India. The Company's revenue has derived from coal trading activities, supplemented by lease rental income from its Sponge Iron Plant, which has been leased out.
75GF Score

Get the complete analysis for BOM:539011

ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹80.20
Price
₹91.43
GF Value