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Sumitomo Chemical India (BOM:542920) 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 (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 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 Agricultural Inputs subindustry, Sumitomo Chemical India'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.
Sumitomo Chemical India ROE % vs Agriculture Industry
For the Agriculture industry and Basic Materials sector, Sumitomo Chemical India's ROE % distribution charts can be found below:
* The bar in red indicates where Sumitomo Chemical India'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 (Jun. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Sumitomo Chemical India (BOM:542920) has a ROE % of 25.35% as of Jun. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Sumitomo Chemical India and its competitors. This is 44% above median its historical median of 17.65. Over the past decade, Sumitomo Chemical India's ROE % has ranged from 12.41 to 25.00. According to the industry distribution chart, Sumitomo Chemical India ranks #44 out of 253 companies in the Agriculture industry, placing it in the top 17.4%.
Is Sumitomo Chemical India's ROE % too high?
Sumitomo Chemical India's current ROE % of 25.35% is 44% above median its 10-year median of 17.65. Over the past 10 years, this metric has ranged from a low of 12.41 to a high of 25.00. The Agriculture industry median ROE % is 6.54. Sumitomo Chemical India's value of 25.35% is 287.6% above this industry median. Based on the distribution chart, Sumitomo Chemical India ranks #44 out of 253 companies in the Agriculture industry, which is in the top quartile — a strong position relative to peers. Overall, Sumitomo Chemical India has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Sumitomo Chemical India's ROE % compare to CTVA and CF?
According to the Agriculture industry distribution chart, Sumitomo Chemical India ranks #44 out of 253 companies for ROE %. This places Sumitomo Chemical India in the top 17% of its industry — outperforming the majority of peers. The industry median ROE % is 6.54. Sumitomo Chemical India's value of 25.35% is 287.6% above this benchmark. Historically, Sumitomo Chemical India's own ROE % has ranged from 12.41 to 25.00 over the past decade. While the company's 10-year median is 17.65 vs. the industry median of 6.54, Sumitomo Chemical India 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 Agriculture company?
The median ROE % among Agriculture companies is 6.54, based on 253 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. Sumitomo Chemical India's current ROE % of 25.35% is 287.6% 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 Sumitomo Chemical India and its competitors. For the Agriculture industry, the median ROE % is 6.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sumitomo Chemical India's current ROE % is 25.35%, which is 44% above median its own 10-year median of 17.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sumitomo Chemical India stock overvalued right now?
Based on GuruFocus' analysis, Sumitomo Chemical India (BOM:542920) is currently considered Fairly Valued. The stock's GF Value™ is ₹513.78, compared to a current price of ₹535.10 — trading 4.1% above its estimated fair value. The current ROE % is 25.35%, which is 44% above median its 10-year median of 17.65 and 287.6% above the Agriculture industry median of 6.54. Sumitomo Chemical India's overall GF Score™ is 86/100 with 1 warning sign 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 Sumitomo Chemical India (BOM:542920), the current ROE % is 25.35% as of Jun. 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 Sumitomo Chemical India (BOM:542920) Overvalued in 2026?
Based on GuruFocus' analysis, Sumitomo Chemical India stock appears to be overvalued.
The current stock price of ₹535.10 is trading 4.1% above its estimated GF Value™ of ₹513.78.
GuruFocus considers Sumitomo Chemical India to be Fairly Valued.
Key valuation signals for BOM:542920:
ROE %: 25.35% (44% above median its 10-year median of 17.65)
GF Value™: ₹513.78 vs. price of ₹535.10 (4.1% above fair value)
Industry Position: 287.6% above the Agriculture median (#44 of 253)
No single metric tells the full story. See the BOM:542920 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sumitomo Chemical India Ltd is engaged in the manufacturing and sales of household insecticides, agricultural pesticides, crop protection, grain fumigation, rodent control, biopesticides, public health insecticides, environmental health, professional pest control and feed additives, and animal nutrition products. The group operates in only one reportable segment namely Agro-chemicals. Geographically, it derives a majority of its revenue from its business in India, and the rest from Brazil, Japan, and other markets.
86GF Score
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