Balu Forge IndustriesNSE:BALUFORGE -3.98%74 ROE % is 16.49% as of Mar. 2026, which is 34% below its 10-year median of 25.10. GuruFocus rates NSE:BALUFORGE with a GF Score™ of 74/100 and a GF Value™ of ₹624.44 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 3,003 Industrial Products companies, Balu Forge Industries ranks better than 89.41% 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 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.
* 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 Metal Fabrication subindustry, Balu Forge Industries'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.
Balu Forge Industries ROE % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Balu Forge Industries's ROE % distribution charts can be found below:
* The bar in red indicates where Balu Forge Industries'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.
Balu Forge Industries (NSE:BALUFORGE) has a ROE % of 16.49% 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 Balu Forge Industries and its competitors. This is 34% below median its historical median of 25.10. Over the past decade, Balu Forge Industries' ROE % has ranged from 12.45 to 104.50. According to the industry distribution chart, Balu Forge Industries ranks #318 out of 3003 companies in the Industrial Products industry, placing it in the top 10.6%.
Is Balu Forge Industries' ROE % too high?
Balu Forge Industries' current ROE % of 16.49% is 34% below median its 10-year median of 25.10. Over the past 10 years, this metric has ranged from a low of 12.45 to a high of 104.50. The Industrial Products industry median ROE % is 5.86. Balu Forge Industries' value of 16.49% is 181.4% above this industry median. Based on the distribution chart, Balu Forge Industries ranks #318 out of 3003 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Balu Forge Industries has a GF Score™ of 74/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Balu Forge Industries' ROE % compare to CRS and ATI?
According to the Industrial Products industry distribution chart, Balu Forge Industries ranks #318 out of 3003 companies for ROE %. This places Balu Forge Industries in the top 11% of its industry — outperforming the majority of peers. The industry median ROE % is 5.86. Balu Forge Industries' value of 16.49% is 181.4% above this benchmark. Historically, Balu Forge Industries' own ROE % has ranged from 12.45 to 104.50 over the past decade. While the company's 10-year median is 25.10 vs. the industry median of 5.86, Balu Forge Industries 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 Industrial Products company?
The median ROE % among Industrial Products companies is 5.86, based on 3,003 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. Balu Forge Industries's current ROE % of 16.49% is 181.4% 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 Balu Forge Industries and its competitors. For the Industrial Products industry, the median ROE % is 5.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Balu Forge Industries's current ROE % is 16.49%, which is 34% below median its own 10-year median of 25.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Balu Forge Industries stock overvalued right now?
Based on GuruFocus' analysis, Balu Forge Industries (NSE:BALUFORGE) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹624.44, compared to a current price of ₹453.95 — trading 27.3% below its estimated fair value. The current ROE % is 16.49%, which is 34% below median its 10-year median of 25.10 and 181.4% above the Industrial Products industry median of 5.86. Balu Forge Industries' overall GF Score™ is 74/100 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 Balu Forge Industries (NSE:BALUFORGE), the current ROE % is 16.49% 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 Balu Forge Industries (NSE:BALUFORGE) Overvalued in 2026?
Based on GuruFocus' analysis, Balu Forge Industries stock appears to be undervalued.
The current stock price of ₹453.95 is trading 27.3% below its estimated GF Value™ of ₹624.44.
GuruFocus considers Balu Forge Industries to be Modestly Undervalued.
Key valuation signals for NSE:BALUFORGE:
ROE %: 16.49% (34% below median its 10-year median of 25.10)
GF Value™: ₹624.44 vs. price of ₹453.95 (27.3% below fair value)
Industry Position: 181.4% above the Industrial Products median (#318 of 3003)
No single metric tells the full story. See the NSE:BALUFORGE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Balu Forge Industries Ltd is engaged in the business of steel forging. The company is a supplier of crankshafts to Original Equipment Manufacturers (OEMs) in India and other countries. It serves railways; car manufacturers; industrial vehicles; defense; oil and gas; agriculture; pumps and other industries. It has a single operating segment: Manufacturing and selling Steel Forging Products. Geographically, the company derives a majority of its revenue from outside India.
74GF Score
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