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RMC SwitchgearsBOM:540358 -3.41%72 ROE % is 5.09% as of Mar. 2026, which is 64% below its 10-year median of 14.29. GuruFocus rates BOM:540358 with a GF Score™ of 72/100 and a GF Value™ of ₹1,366.62 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 3,001 Industrial Products companies, RMC Switchgears ranks better than 87.9% on this metric.
The historical rank and industry rank for RMC Switchgears's ROE % or its related term are showing as below:
BOM:540358'
s ROE % Range Over the Past 10 Years
Min: 1.1 Med: 14.29 Max: 36.63
Current: 18.47
During the past 13 years, RMC Switchgears's highest ROE % was 36.63%. The lowest was 1.10%. And the median was 14.29%.
BOM:540358's ROE % is ranked better than 87.9% of 3001
companies
in the Industrial Products industry
Industry Median: 5.86
vs BOM:540358: 18.47
RMC Switchgears (BOM:540358) 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:
Note:
The net income data used here is two times the semi-annual (Mar. 2026) net income data. The Revenue data used here is two times the semi-annual (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.
RMC Switchgears ROE % Related Terms
RMC Switchgears ROE % Historical Data
* Premium members only.
The historical data trend for RMC Switchgears'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 Electrical Equipment & Parts subindustry, RMC Switchgears'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.
RMC Switchgears ROE % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, RMC Switchgears's ROE % distribution charts can be found below:
* The bar in red indicates where RMC Switchgears'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 two times the semi-annual (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
RMC Switchgears (BOM:540358) has a ROE % of 5.09% 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 RMC Switchgears and its competitors. This is 64% below median its historical median of 14.29. Over the past decade, RMC Switchgears' ROE % has ranged from 1.10 to 36.63. According to the industry distribution chart, RMC Switchgears ranks #363 out of 3001 companies in the Industrial Products industry, placing it in the top 12.1%.
Is RMC Switchgears' ROE % too high?
RMC Switchgears' current ROE % of 5.09% is 64% below median its 10-year median of 14.29. Over the past 10 years, this metric has ranged from a low of 1.10 to a high of 36.63. The Industrial Products industry median ROE % is 5.86. RMC Switchgears' value of 5.09% is 13.1% below this industry median. Based on the distribution chart, RMC Switchgears ranks #363 out of 3001 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, RMC Switchgears has a GF Score™ of 72/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does RMC Switchgears' ROE % compare to VRT and BE?
According to the Industrial Products industry distribution chart, RMC Switchgears ranks #363 out of 3001 companies for ROE %. This places RMC Switchgears in the top 12% of its industry — outperforming the majority of peers. The industry median ROE % is 5.86. RMC Switchgears' value of 5.09% is 13.1% below this benchmark. Historically, RMC Switchgears' own ROE % has ranged from 1.10 to 36.63 over the past decade. While the company's 10-year median is 14.29 vs. the industry median of 5.86, RMC Switchgears 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 an Industrial Products company?
The median ROE % among Industrial Products companies is 5.86, based on 3,001 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. RMC Switchgears's current ROE % of 5.09% is 13.1% 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 RMC Switchgears and its competitors. For the Industrial Products industry, the median ROE % is 5.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. RMC Switchgears's current ROE % is 5.09%, which is 64% below median its own 10-year median of 14.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is RMC Switchgears stock overvalued right now?
Based on GuruFocus' analysis, RMC Switchgears (BOM:540358) is currently considered Possible Value Trap. The stock's GF Value™ is ₹1,366.62, compared to a current price of ₹269.50 — trading 80.3% below its estimated fair value. The current ROE % is 5.09%, which is 64% below median its 10-year median of 14.29 and 13.1% below the Industrial Products industry median of 5.86. RMC Switchgears' overall GF Score™ is 72/100 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 RMC Switchgears (BOM:540358), the current ROE % is 5.09% 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 RMC Switchgears (BOM:540358) Overvalued in 2026?
Based on GuruFocus' analysis, RMC Switchgears stock appears to be undervalued.
The current stock price of ₹269.50 is trading 80.3% below its estimated GF Value™ of ₹1,366.62.
GuruFocus considers RMC Switchgears to be Possible Value Trap.
Key valuation signals for BOM:540358:
ROE %: 5.09% (64% below median its 10-year median of 14.29)
GF Value™: ₹1,366.62 vs. price of ₹269.50 (80.3% below fair value)
Industry Position: 13.1% below the Industrial Products median (#363 of 3001)
No single metric tells the full story. See the BOM:540358 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
RMC Switchgears Ltd designs and manufactures electronic energy meters, enclosures for energy metering, distribution boxes, panels, sheet moulding compounds, bulk moulding compounds, and solar power equipment, and provides turnkey contracts. The company operates in two segments: primary and secondary. The primary segment is engaged in "Switch Gear Engineering" and "Construction contracts for the power distribution/transmission sector." The secondary segment operates mainly within the geographical limits of India.
72GF Score
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