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Gautam GemsBOM:540936 -0.33%66 ROE % is 3.13% as of Mar. 2026, which is 96% above its 10-year median of 1.60. GuruFocus rates BOM:540936 with a GF Score™ of 66/100 and a GF Value™ of ₹5.50 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 1,097 Retail - Cyclical companies, Gautam Gems ranks worse than 68.46% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Gautam Gems's annualized net income for the quarter that ended in Mar. 2026 was ₹16.3 Mil. Gautam Gems's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was ₹519.8 Mil. Therefore, Gautam Gems's annualized ROE % for the quarter that ended in Mar. 2026 was 3.13%.
The historical rank and industry rank for Gautam Gems's ROE % or its related term are showing as below:
BOM:540936'
s ROE % Range Over the Past 10 Years
Min: 0.56 Med: 1.6 Max: 5.53
Current: 1.36
During the past 13 years, Gautam Gems's highest ROE % was 5.53%. The lowest was 0.56%. And the median was 1.60%.
BOM:540936's ROE % is ranked worse than 68.46% of 1097
companies
in the Retail - Cyclical industry
Industry Median: 6.49
vs BOM:540936: 1.36
Gautam Gems (BOM:540936) 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 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.
Gautam Gems ROE % Related Terms
Gautam Gems ROE % Historical Data
* Premium members only.
The historical data trend for Gautam Gems'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 Luxury Goods subindustry, Gautam Gems'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.
Gautam Gems ROE % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Gautam Gems's ROE % distribution charts can be found below:
* The bar in red indicates where Gautam Gems'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.
Gautam Gems (BOM:540936) has a ROE % of 3.13% 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 Gautam Gems and its competitors. This is 96% above median its historical median of 1.60. Over the past decade, Gautam Gems' ROE % has ranged from 0.56 to 5.53. According to the industry distribution chart, Gautam Gems ranks #751 out of 1097 companies in the Retail - Cyclical industry, placing it in the top 68.5%.
Is Gautam Gems' ROE % too high?
Gautam Gems' current ROE % of 3.13% is 96% above median its 10-year median of 1.60. Over the past 10 years, this metric has ranged from a low of 0.56 to a high of 5.53. The Retail - Cyclical industry median ROE % is 6.49. Gautam Gems' value of 3.13% is 51.8% below this industry median. Based on the distribution chart, Gautam Gems ranks #751 out of 1097 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Gautam Gems has a GF Score™ of 66/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Gautam Gems' ROE % compare to TPR?
According to the Retail - Cyclical industry distribution chart, Gautam Gems ranks #751 out of 1097 companies for ROE %. This places Gautam Gems in the lower half of its industry. The industry median ROE % is 6.49. Gautam Gems' value of 3.13% is 51.8% below this benchmark. Historically, Gautam Gems' own ROE % has ranged from 0.56 to 5.53 over the past decade. While the company's 10-year median is 1.60 vs. the industry median of 6.49, Gautam Gems 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 Retail - Cyclical company?
The median ROE % among Retail - Cyclical companies is 6.49, based on 1,097 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. Gautam Gems's current ROE % of 3.13% is 51.8% 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 Gautam Gems and its competitors. For the Retail - Cyclical industry, the median ROE % is 6.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gautam Gems's current ROE % is 3.13%, which is 96% above median its own 10-year median of 1.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gautam Gems stock overvalued right now?
Based on GuruFocus' analysis, Gautam Gems (BOM:540936) is currently considered Possible Value Trap. The stock's GF Value™ is ₹5.50, compared to a current price of ₹3.05 — trading 44.5% below its estimated fair value. The current ROE % is 3.13%, which is 96% above median its 10-year median of 1.60 and 51.8% below the Retail - Cyclical industry median of 6.49. Gautam Gems' overall GF Score™ is 66/100 with 5 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 Gautam Gems (BOM:540936), the current ROE % is 3.13% 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 Gautam Gems (BOM:540936) Overvalued in 2026?
Based on GuruFocus' analysis, Gautam Gems stock appears to be undervalued.
The current stock price of ₹3.05 is trading 44.5% below its estimated GF Value™ of ₹5.50.
GuruFocus considers Gautam Gems to be Possible Value Trap.
Key valuation signals for BOM:540936:
ROE %: 3.13% (96% above median its 10-year median of 1.60)
GF Value™: ₹5.50 vs. price of ₹3.05 (44.5% below fair value)
Industry Position: 51.8% below the Retail - Cyclical median (#751 of 1097)
No single metric tells the full story. See the BOM:540936 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gautam Gems Ltd is an India-based company engaged in the trading of rough and polished diamonds. It offers a broad and diverse range of diamonds in various shapes, cuts, sizes, and colors, ranging from 0.18 carats to over 15 carats, with grading precision tailored to client specifications. The company's operation spans the full lifecycle of the diamond supply chain, from the procurement of rough diamonds to the processing, grading, and sale of finished polished stones. Its client portfolio includes wholesalers, manufacturers, and design studios located globally. Operations are conducted through both owned and contract-based units. Additionally, the company also offers gold jewelry.
66GF Score
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