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 Software - Application subindustry, Kernex Microsystems (India)'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.
Kernex Microsystems (India) ROE % vs Software Industry
For the Software industry and Technology sector, Kernex Microsystems (India)'s ROE % distribution charts can be found below:
* The bar in red indicates where Kernex Microsystems (India)'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.
Kernex Microsystems (India) (NSE:KERNEX) has a ROE % of 110.04% 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 Kernex Microsystems (India) and its competitors. According to the industry distribution chart, Kernex Microsystems (India) ranks #144 out of 2682 companies in the Software industry, placing it in the top 5.4%.
Is Kernex Microsystems (India)'s ROE % too high?
Kernex Microsystems (India)'s current ROE % is 110.04%. The Software industry median ROE % is 4.72. Kernex Microsystems (India)'s value of 110.04% is 2231.4% above this industry median. Based on the distribution chart, Kernex Microsystems (India) ranks #144 out of 2682 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Kernex Microsystems (India) has a GF Score™ of 62/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Kernex Microsystems (India)'s ROE % compare to CRM and SHOP?
According to the Software industry distribution chart, Kernex Microsystems (India) ranks #144 out of 2682 companies for ROE %. This places Kernex Microsystems (India) in the top 5% of its industry — outperforming the majority of peers. The industry median ROE % is 4.72. Kernex Microsystems (India)'s value of 110.04% is 2231.4% above this benchmark. 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 Software company?
The median ROE % among Software companies is 4.72, based on 2,682 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. Kernex Microsystems (India)'s current ROE % of 110.04% is 2231.4% 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 Kernex Microsystems (India) and its competitors. For the Software industry, the median ROE % is 4.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kernex Microsystems (India)'s current ROE % is 110.04%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kernex Microsystems (India) stock overvalued right now?
Based on GuruFocus' analysis, Kernex Microsystems (India) (NSE:KERNEX) is currently considered Possible Value Trap. The stock's GF Value™ is ₹6,924.39, compared to a current price of ₹2,035.70 — trading 70.6% below its estimated fair value. The current ROE % is 110.04% and 2231.4% above the Software industry median of 4.72. Kernex Microsystems (India)'s overall GF Score™ is 62/100 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 Kernex Microsystems (India) (NSE:KERNEX), the current ROE % is 110.04% 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 Kernex Microsystems (India) (NSE:KERNEX) Overvalued in 2026?
Based on GuruFocus' analysis, Kernex Microsystems (India) stock appears to be undervalued.
The current stock price of ₹2,035.70 is trading 70.6% below its estimated GF Value™ of ₹6,924.39.
GuruFocus considers Kernex Microsystems (India) to be Possible Value Trap.
Key valuation signals for NSE:KERNEX:
ROE %: 110.04%
GF Value™: ₹6,924.39 vs. price of ₹2,035.70 (70.6% below fair value)
Industry Position: 2231.4% above the Software median (#144 of 2682)
No single metric tells the full story. See the NSE:KERNEX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kernex Microsystems (India) Ltd is an India based company engaged in the manufacture and sale of Safety Systems and Software services for Railways. The company is in the business of designing, developing, and deployment of Train Collision Avoidance Systems in Indian Railways, and successfully completing the installation of automatic and semi-automatic Railway Gates. It offers products which include LxGuard, TrainSHIELD, SAFELx, SENTINEX, CASRY, KMDAX, ATRW, KTPIS, and BCPS2440. Geographically, it generates the majority of its revenue within India.
62GF Score
Get the complete analysis for NSE:KERNEX
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:KERNEX has been successfully added to your 
