Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
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 Auto Parts subindustry, Hindustan Composites'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.
Hindustan Composites ROE % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Hindustan Composites's ROE % distribution charts can be found below:
* The bar in red indicates where Hindustan Composites'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.
Hindustan Composites (NSE:HINDCOMPOS) has a ROE % of 3.03% 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 Hindustan Composites and its competitors. This is near median its historical median of 2.89. Over the past decade, Hindustan Composites' ROE % has ranged from 1.38 to 3.61. According to the industry distribution chart, Hindustan Composites ranks #887 out of 1307 companies in the Vehicles & Parts industry, placing it in the top 67.9%.
Is Hindustan Composites' ROE % too high?
Hindustan Composites' current ROE % of 3.03% is near median its 10-year median of 2.89. Over the past 10 years, this metric has ranged from a low of 1.38 to a high of 3.61. The Vehicles & Parts industry median ROE % is 7.00. Hindustan Composites' value of 3.03% is 56.7% below this industry median. Based on the distribution chart, Hindustan Composites ranks #887 out of 1307 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Hindustan Composites has a GF Score™ of 83/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hindustan Composites' ROE % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Hindustan Composites ranks #887 out of 1307 companies for ROE %. This places Hindustan Composites in the lower half of its industry. The industry median ROE % is 7.00. Hindustan Composites' value of 3.03% is 56.7% below this benchmark. Historically, Hindustan Composites' own ROE % has ranged from 1.38 to 3.61 over the past decade. While the company's 10-year median is 2.89 vs. the industry median of 7.00, Hindustan Composites has consistently been below 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 Vehicles & Parts company?
The median ROE % among Vehicles & Parts companies is 7.00, based on 1,307 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. Hindustan Composites's current ROE % of 3.03% is 56.7% below 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 Hindustan Composites and its competitors. For the Vehicles & Parts industry, the median ROE % is 7.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hindustan Composites's current ROE % is 3.03%, which is near median its own 10-year median of 2.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hindustan Composites stock overvalued right now?
Based on GuruFocus' analysis, Hindustan Composites (NSE:HINDCOMPOS) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹466.33, compared to a current price of ₹411.50 — trading 11.8% below its estimated fair value. The current ROE % is 3.03%, which is near median its 10-year median of 2.89 and 56.7% below the Vehicles & Parts industry median of 7.00. Hindustan Composites' overall GF Score™ is 83/100 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 Hindustan Composites (NSE:HINDCOMPOS), the current ROE % is 3.03% 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 Hindustan Composites (NSE:HINDCOMPOS) Overvalued in 2026?
Based on GuruFocus' analysis, Hindustan Composites stock appears to be undervalued.
The current stock price of ₹411.50 is trading 11.8% below its estimated GF Value™ of ₹466.33.
GuruFocus considers Hindustan Composites to be Modestly Undervalued.
Key valuation signals for NSE:HINDCOMPOS:
ROE %: 3.03% (near median its 10-year median of 2.89)
GF Value™: ₹466.33 vs. price of ₹411.50 (11.8% below fair value)
Industry Position: 56.7% below the Vehicles & Parts median (#887 of 1307)
No single metric tells the full story. See the NSE:HINDCOMPOS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hindustan Composites Ltd is engaged in the business of manufacturing and marketing fiber-based friction materials. The company serves various industries, such as automotive, railways, engineering, mining, aerospace, steel, chemicals, oil exploration, and others. It offers friction materials such as Brake lining, Roll lining, Clutch facing, Disc Brake Pad, Brake Block, and others. It also offers industrial thrust bearing and insulation products comprising Millboard sheets, Millboard discs, and Competitors. Geographically, the group operates throughout the regions of India and derives revenue through the sale of its products. The group has two segments: Composite products and Investments. Composite product is the key revenue-generating segment.
83GF Score
Get the complete analysis for NSE:HINDCOMPOS
ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NSE:HINDCOMPOS has been successfully added to your 
