Corporate Merchant BankersBOM:540199 +0.76%51 ROE % is 1.27% as of Mar. 2026, which is 12600% above its 10-year median of 0.01. GuruFocus rates BOM:540199 with a GF Score™ of 51/100 and a GF Value™ of ₹17.02 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 527 Credit Services companies, Corporate Merchant Bankers ranks worse than 51.42% 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, Corporate Merchant Bankers'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.
Corporate Merchant Bankers ROE % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Corporate Merchant Bankers's ROE % distribution charts can be found below:
* The bar in red indicates where Corporate Merchant Bankers'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.
Corporate Merchant Bankers (BOM:540199) has a ROE % of 1.27% 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 Corporate Merchant Bankers and its competitors. This is 12600% above median its historical median of 0.01. According to the industry distribution chart, Corporate Merchant Bankers ranks #271 out of 527 companies in the Credit Services industry, placing it in the top 51.4%.
Is Corporate Merchant Bankers' ROE % too high?
Corporate Merchant Bankers' current ROE % of 1.27% is 12600% above median its 10-year median of 0.01. The Credit Services industry median ROE % is 6.67. Corporate Merchant Bankers' value of 1.27% is 81% below this industry median. Based on the distribution chart, Corporate Merchant Bankers ranks #271 out of 527 companies in the Credit Services industry, which is below the industry midpoint. Overall, Corporate Merchant Bankers has a GF Score™ of 51/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Corporate Merchant Bankers' ROE % compare to V and MA?
According to the Credit Services industry distribution chart, Corporate Merchant Bankers ranks #271 out of 527 companies for ROE %. This places Corporate Merchant Bankers in the lower half of its industry. The industry median ROE % is 6.67. Corporate Merchant Bankers' value of 1.27% is 81% below this benchmark. While the company's 10-year median is 0.01 vs. the industry median of 6.67, Corporate Merchant Bankers 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 527 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. Corporate Merchant Bankers's current ROE % of 1.27% is 81% 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 Corporate Merchant Bankers 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. Corporate Merchant Bankers's current ROE % is 1.27%, which is 12600% above median its own 10-year median of 0.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Corporate Merchant Bankers stock overvalued right now?
Based on GuruFocus' analysis, Corporate Merchant Bankers (BOM:540199) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹17.02, compared to a current price of ₹53.00 — trading 211.4% above its estimated fair value. The current ROE % is 1.27%, which is 12600% above median its 10-year median of 0.01 and 81% below the Credit Services industry median of 6.67. Corporate Merchant Bankers' overall GF Score™ is 51/100 with 2 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 Corporate Merchant Bankers (BOM:540199), the current ROE % is 1.27% 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 Corporate Merchant Bankers (BOM:540199) Overvalued in 2026?
Based on GuruFocus' analysis, Corporate Merchant Bankers stock appears to be overvalued.
The current stock price of ₹53.00 is trading 211.4% above its estimated GF Value™ of ₹17.02.
GuruFocus considers Corporate Merchant Bankers to be Significantly Overvalued.
Key valuation signals for BOM:540199:
ROE %: 1.27% (12600% above median its 10-year median of 0.01)
GF Value™: ₹17.02 vs. price of ₹53.00 (211.4% above fair value)
Industry Position: 81% below the Credit Services median (#271 of 527)
No single metric tells the full story. See the BOM:540199 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Corporate Merchant Bankers Ltd is a Non-Banking Financial Company. The company is engaged in providing loans and advances to various Corporates. It also provides consultancy services. The company has one business segment, which is providing financial services.
51GF Score
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