Nishat PowerKAR:NPL -0.42%57 ROE % is 9.44% as of Mar. 2026, which is 51% below its 10-year median of 19.23. GuruFocus rates KAR:NPL with a GF Score™ of 57/100 and a GF Value™ of ₨13.15 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 433 Utilities - Independent Power Producers companies, Nishat Power ranks better than 75.75% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Nishat Power's annualized net income for the quarter that ended in Mar. 2026 was ₨2,764 Mil. Nishat Power's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was ₨29,289 Mil. Therefore, Nishat Power's annualized ROE % for the quarter that ended in Mar. 2026 was 9.44%.
The historical rank and industry rank for Nishat Power's ROE % or its related term are showing as below:
KAR:NPL'
s ROE % Range Over the Past 10 Years
Min: -2.46 Med: 19.23 Max: 23.89
Current: 10.62
During the past 13 years, Nishat Power's highest ROE % was 23.89%. The lowest was -2.46%. And the median was 19.23%.
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.
Nishat Power ROE % Related Terms
Nishat Power ROE % Historical Data
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The historical data trend for Nishat Power'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 Utilities - Independent Power Producers subindustry, Nishat Power'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.
Nishat Power ROE % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Nishat Power's ROE % distribution charts can be found below:
* The bar in red indicates where Nishat Power'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.
Nishat Power (KAR:NPL) has a ROE % of 9.44% 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 Nishat Power and its competitors. This is 51% below median its historical median of 19.23. According to the industry distribution chart, Nishat Power ranks #105 out of 433 companies in the Utilities - Independent Power Producers industry, placing it in the top 24.2%.
Is Nishat Power's ROE % too high?
Nishat Power's current ROE % of 9.44% is 51% below median its 10-year median of 19.23. The Utilities - Independent Power Producers industry median ROE % is 3.80. Nishat Power's value of 9.44% is 148.4% above this industry median. Based on the distribution chart, Nishat Power ranks #105 out of 433 companies in the Utilities - Independent Power Producers industry, which is in the top quartile — a strong position relative to peers. Overall, Nishat Power has a GF Score™ of 57/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nishat Power's ROE % compare to CEG and VST?
According to the Utilities - Independent Power Producers industry distribution chart, Nishat Power ranks #105 out of 433 companies for ROE %. This places Nishat Power in the top 24% of its industry — outperforming the majority of peers. The industry median ROE % is 3.80. Nishat Power's value of 9.44% is 148.4% above this benchmark. While the company's 10-year median is 19.23 vs. the industry median of 3.80, Nishat Power 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 Utilities - Independent Power Producers company?
The median ROE % among Utilities - Independent Power Producers companies is 3.80, based on 433 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. Nishat Power's current ROE % of 9.44% is 148.4% 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 Nishat Power and its competitors. For the Utilities - Independent Power Producers industry, the median ROE % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nishat Power's current ROE % is 9.44%, which is 51% below median its own 10-year median of 19.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nishat Power stock overvalued right now?
Based on GuruFocus' analysis, Nishat Power (KAR:NPL) is currently considered Significantly Overvalued. The stock's GF Value™ is ₨13.15, compared to a current price of ₨73.89 — trading 461.9% above its estimated fair value. The current ROE % is 9.44%, which is 51% below median its 10-year median of 19.23 and 148.4% above the Utilities - Independent Power Producers industry median of 3.80. Nishat Power's overall GF Score™ is 57/100 with 7 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 Nishat Power (KAR:NPL), the current ROE % is 9.44% 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 Nishat Power (KAR:NPL) Overvalued in 2026?
Based on GuruFocus' analysis, Nishat Power stock appears to be overvalued.
The current stock price of ₨73.89 is trading 461.9% above its estimated GF Value™ of ₨13.15.
GuruFocus considers Nishat Power to be Significantly Overvalued.
Key valuation signals for KAR:NPL:
ROE %: 9.44% (51% below median its 10-year median of 19.23)
GF Value™: ₨13.15 vs. price of ₨73.89 (461.9% above fair value)
Industry Position: 148.4% above the Utilities - Independent Power Producers median (#105 of 433)
No single metric tells the full story. See the KAR:NPL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nishat Power Ltd is a company whose principal activity is to build, own, operate and maintain a fuel-fired power plant based on Reciprocating Engine Technology having a gross capacity of 200MW in Jamber Kalan, Tehsil Pattoki, District Kasur, Punjab, Pakistan. It operates in single operating segment being: Revenue from sale of electricity relates to CPPA-G.
57GF Score
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