Piramal FinanceBOM:544597 +1.93%26 ROE % is 7.12% as of Mar. 2026, which is 100% above its 10-year median of 3.56. GuruFocus rates BOM:544597 with a GF Score™ of 26/100. The stock has 4 warning signs investors should review. Among 527 Credit Services companies, Piramal Finance ranks worse than 58.25% on this metric.
The historical rank and industry rank for Piramal Finance's ROE % or its related term are showing as below:
BOM:544597'
s ROE % Range Over the Past 10 Years
Min: -4004.12 Med: 3.56 Max: 243.45
Current: 4.1
During the past 5 years, Piramal Finance's highest ROE % was 243.45%. The lowest was -4,004.12%. And the median was 3.56%.
BOM:544597's ROE % is ranked worse than 58.25% of 527
companies
in the Credit Services industry
Industry Median: 6.67
vs BOM:544597: 4.10
Piramal Finance (BOM:544597) 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.
Piramal Finance ROE % Related Terms
Piramal Finance ROE % Historical Data
* Premium members only.
The historical data trend for Piramal Finance'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 Credit Services subindustry, Piramal Finance'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.
Piramal Finance ROE % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Piramal Finance's ROE % distribution charts can be found below:
* The bar in red indicates where Piramal Finance'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.
Piramal Finance (BOM:544597) has a ROE % of 7.12% 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 Piramal Finance and its competitors. This is 100% above median its historical median of 3.56. According to the industry distribution chart, Piramal Finance ranks #307 out of 527 companies in the Credit Services industry, placing it in the top 58.3%.
Is Piramal Finance's ROE % too high?
Piramal Finance's current ROE % of 7.12% is 100% above median its 10-year median of 3.56. The Credit Services industry median ROE % is 6.67. Piramal Finance's value of 7.12% is 6.7% above this industry median. Based on the distribution chart, Piramal Finance ranks #307 out of 527 companies in the Credit Services industry, which is below the industry midpoint. Overall, Piramal Finance has a GF Score™ of 26/100, reflecting its overall financial health beyond just this single metric.
How does Piramal Finance's ROE % compare to V and MA?
According to the Credit Services industry distribution chart, Piramal Finance ranks #307 out of 527 companies for ROE %. This places Piramal Finance in the lower half of its industry. The industry median ROE % is 6.67. Piramal Finance's value of 7.12% is 6.7% above this benchmark. While the company's 10-year median is 3.56 vs. the industry median of 6.67, Piramal Finance 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 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. Piramal Finance's current ROE % of 7.12% is 6.7% 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 Piramal Finance 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. Piramal Finance's current ROE % is 7.12%, which is 100% above median its own 10-year median of 3.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Piramal Finance stock overvalued right now?
Piramal Finance (BOM:544597) has a current ROE % of 7.12%. The current ROE % is 7.12%, which is 100% above median its 10-year median of 3.56 and 6.7% above the Credit Services industry median of 6.67. Piramal Finance's overall GF Score™ is 26/100 with 4 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 Piramal Finance (BOM:544597), the current ROE % is 7.12% 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.
Piramal Finance Ltd main business is providing loans to customers for construction or purchase of residential property, loans against property, loans to real estate developers, loans to SMEs, Consumption loans, etc. Its loan products are Home Loan, Construction Loan, Renovation Loan, Extension Loan, Business Loans, Loan Against Property, Small Business Loan, Working Capital Loan, Personal Loan, Used Car Loan, Group Loan, Loan Against Securities, Loan Against Car, Insurance Services, Interest Rates & Disclosures, Wholesale Lending, Alternatives, etc. The company's business segments are Retail Lending, Wholesale Lending, Alternatives, and Life Insurance. The Company has identified only one reportable business segment & geographical segment as it deals mainly in lending business within India.
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