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Arabian PetroleumNSE:ARABIAN +4.27%66 ROE % is 15.81% as of Mar. 2026, which is 27% below its 10-year median of 21.61. GuruFocus rates NSE:ARABIAN with a GF Score™ of 66/100 and a GF Value™ of ₹121.48 (Possible Value Trap). The stock has 2 warning signs investors should review. Among 962 Oil & Gas companies, Arabian Petroleum ranks better than 76.3% on this metric.
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 two times the semi-annual (Mar. 2026) net income data. The Revenue data used here is two times the semi-annual (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.
Arabian Petroleum ROE % Related Terms
Arabian Petroleum ROE % Historical Data
* Premium members only.
The historical data trend for Arabian Petroleum'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 Oil & Gas Refining & Marketing subindustry, Arabian Petroleum'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.
Arabian Petroleum ROE % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Arabian Petroleum's ROE % distribution charts can be found below:
* The bar in red indicates where Arabian Petroleum'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 two times the semi-annual (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Arabian Petroleum (NSE:ARABIAN) has a ROE % of 15.81% 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 Arabian Petroleum and its competitors. This is 27% below median its historical median of 21.61. Over the past decade, Arabian Petroleum's ROE % has ranged from 16.94 to 32.18. According to the industry distribution chart, Arabian Petroleum ranks #228 out of 962 companies in the Oil & Gas industry, placing it in the top 23.7%.
Is Arabian Petroleum's ROE % too high?
Arabian Petroleum's current ROE % of 15.81% is 27% below median its 10-year median of 21.61. Over the past 10 years, this metric has ranged from a low of 16.94 to a high of 32.18. The Oil & Gas industry median ROE % is 7.35. Arabian Petroleum's value of 15.81% is 115.1% above this industry median. Based on the distribution chart, Arabian Petroleum ranks #228 out of 962 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Arabian Petroleum 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 Arabian Petroleum's ROE % compare to MPC and VLO?
According to the Oil & Gas industry distribution chart, Arabian Petroleum ranks #228 out of 962 companies for ROE %. This places Arabian Petroleum in the top 24% of its industry — outperforming the majority of peers. The industry median ROE % is 7.35. Arabian Petroleum's value of 15.81% is 115.1% above this benchmark. Historically, Arabian Petroleum's own ROE % has ranged from 16.94 to 32.18 over the past decade. While the company's 10-year median is 21.61 vs. the industry median of 7.35, Arabian Petroleum 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 Oil & Gas company?
The median ROE % among Oil & Gas companies is 7.35, based on 962 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. Arabian Petroleum's current ROE % of 15.81% is 115.1% 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 Arabian Petroleum and its competitors. For the Oil & Gas industry, the median ROE % is 7.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arabian Petroleum's current ROE % is 15.81%, which is 27% below median its own 10-year median of 21.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arabian Petroleum stock overvalued right now?
Based on GuruFocus' analysis, Arabian Petroleum (NSE:ARABIAN) is currently considered Possible Value Trap. The stock's GF Value™ is ₹121.48, compared to a current price of ₹85.50 — trading 29.6% below its estimated fair value. The current ROE % is 15.81%, which is 27% below median its 10-year median of 21.61 and 115.1% above the Oil & Gas industry median of 7.35. Arabian Petroleum's overall GF Score™ is 66/100 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 Arabian Petroleum (NSE:ARABIAN), the current ROE % is 15.81% 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 Arabian Petroleum (NSE:ARABIAN) Overvalued in 2026?
Based on GuruFocus' analysis, Arabian Petroleum stock appears to be undervalued.
The current stock price of ₹85.50 is trading 29.6% below its estimated GF Value™ of ₹121.48.
GuruFocus considers Arabian Petroleum to be Possible Value Trap.
Key valuation signals for NSE:ARABIAN:
ROE %: 15.81% (27% below median its 10-year median of 21.61)
GF Value™: ₹121.48 vs. price of ₹85.50 (29.6% below fair value)
Industry Position: 115.1% above the Oil & Gas median (#228 of 962)
No single metric tells the full story. See the NSE:ARABIAN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arabian Petroleum Ltd is a company engaged in the business of manufacturing a wide range of Lubricants, including Specialty Oils, Coolants etc , used for Industrial and Automotive applications. The business is categorized into two distinctive product divisions, which include Automotive Lubricants - Arzol and Industrial Lubricants-SPL. Geographically, the company generates the majority of its revenue from India.
66GF Score
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