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 (Dec. 2025) net income data. The Revenue data used here is four times the quarterly (Dec. 2025) 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.
Garden Reach Shipbuilders & Engineers ROE % Related Terms
Garden Reach Shipbuilders & Engineers ROE % Historical Data
* 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 Aerospace & Defense subindustry, Garden Reach Shipbuilders & Engineers'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.
Garden Reach Shipbuilders & Engineers ROE % vs Aerospace & Defense Industry
* 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 (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Garden Reach Shipbuilders & Engineers (BOM:542011) has a ROE % of 29.75% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Garden Reach Shipbuilders & Engineers and its competitors. This is 91% above median its historical median of 15.54. Over the past decade, Garden Reach Shipbuilders & Engineers' ROE % has ranged from 1.03 to 33.25. According to the industry distribution chart, Garden Reach Shipbuilders & Engineers ranks #24 out of 347 companies in the Aerospace & Defense industry, placing it in the top 6.9%.
Is Garden Reach Shipbuilders & Engineers' ROE % too high?
Garden Reach Shipbuilders & Engineers' current ROE % of 29.75% is 91% above median its 10-year median of 15.54. Over the past 10 years, this metric has ranged from a low of 1.03 to a high of 33.25. The Aerospace & Defense industry median ROE % is 5.91. Garden Reach Shipbuilders & Engineers' value of 29.75% is 403.4% above this industry median. Based on the distribution chart, Garden Reach Shipbuilders & Engineers ranks #24 out of 347 companies in the Aerospace & Defense industry, which is in the top quartile — a strong position relative to peers. Overall, Garden Reach Shipbuilders & Engineers has a GF Score™ of 91/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Garden Reach Shipbuilders & Engineers' ROE % compare to GE and RTX?
According to the Aerospace & Defense industry distribution chart, Garden Reach Shipbuilders & Engineers ranks #24 out of 347 companies for ROE %. This places Garden Reach Shipbuilders & Engineers in the top 7% of its industry — outperforming the majority of peers. The industry median ROE % is 5.91. Garden Reach Shipbuilders & Engineers' value of 29.75% is 403.4% above this benchmark. Historically, Garden Reach Shipbuilders & Engineers' own ROE % has ranged from 1.03 to 33.25 over the past decade. While the company's 10-year median is 15.54 vs. the industry median of 5.91, Garden Reach Shipbuilders & Engineers 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 an Aerospace & Defense company?
The median ROE % among Aerospace & Defense companies is 5.91, based on 347 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. Garden Reach Shipbuilders & Engineers's current ROE % of 29.75% is 403.4% 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 Garden Reach Shipbuilders & Engineers and its competitors. For the Aerospace & Defense industry, the median ROE % is 5.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Garden Reach Shipbuilders & Engineers's current ROE % is 29.75%, which is 91% above median its own 10-year median of 15.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Garden Reach Shipbuilders & Engineers stock overvalued right now?
Based on GuruFocus' analysis, Garden Reach Shipbuilders & Engineers (BOM:542011) is currently considered Fairly Valued. The stock's GF Value™ is ₹2,684.96, compared to a current price of ₹2,725.20 — trading 1.5% above its estimated fair value. The current ROE % is 29.75%, which is 91% above median its 10-year median of 15.54 and 403.4% above the Aerospace & Defense industry median of 5.91. Garden Reach Shipbuilders & Engineers' overall GF Score™ is 91/100 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 Garden Reach Shipbuilders & Engineers (BOM:542011), the current ROE % is 29.75% as of Dec. 2025. 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 Garden Reach Shipbuilders & Engineers (BOM:542011) Overvalued in 2026?
Based on GuruFocus' analysis, Garden Reach Shipbuilders & Engineers stock appears to be overvalued.
The current stock price of ₹2,725.20 is trading 1.5% above its estimated GF Value™ of ₹2,684.96.
GuruFocus considers Garden Reach Shipbuilders & Engineers to be Fairly Valued.
Key valuation signals for BOM:542011:
ROE %: 29.75% (91% above median its 10-year median of 15.54)
GF Value™: ₹2,684.96 vs. price of ₹2,725.20 (1.5% above fair value)
Industry Position: 403.4% above the Aerospace & Defense median (#24 of 347)
No single metric tells the full story. See the BOM:542011 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Garden Reach Shipbuilders & Engineers Business Description
Garden Reach Shipbuilders & Engineers Ltd is an Indian shipbuilding company mainly engaged in the construction of warships. The company's product portfolio ranges from complex naval warships to weapon systems, encompassing commercial vessels, deck machinery, marine diesel engines, naval surface guns, and Bailey-type portable steel bridges. Additionally, it offers ship repair and maintenance services.
91GF Score
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