Paramount Speciality ForgingsNSE:PSFL +0.15%13 ROE % is 11.92% as of Mar. 2025, which is 24% below its 10-year median of 15.60. GuruFocus rates NSE:PSFL with a GF Score™ of 13/100. The stock has 5 warning signs investors should review. Among 3,004 Industrial Products companies, Paramount Speciality Forgings ranks better than 74.67% 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 one times the annual (Mar. 2025) net income data. The Revenue data used here is one times the annual (Mar. 2025) 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.
Paramount Speciality Forgings ROE % Related Terms
Paramount Speciality Forgings ROE % Historical Data
* 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.
Paramount Speciality Forgings ROE % Chart
Paramount Speciality Forgings Annual Data
Trend
Mar21
Mar22
Mar23
Mar24
Mar25
ROE %
-1.65
17.28
15.60
27.99
11.92
Paramount Speciality Forgings Semi-Annual Data
Mar21
Mar22
Mar23
Mar24
Mar25
ROE %
-1.65
17.28
15.60
27.99
11.92
NSE:PSFL vs ATI, CRS, MLI: ROE % Comparison
For the Metal Fabrication subindustry, Paramount Speciality Forgings'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.
Paramount Speciality Forgings ROE % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Paramount Speciality Forgings's ROE % distribution charts can be found below:
* The bar in red indicates where Paramount Speciality Forgings'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 one times the annual (Mar. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Paramount Speciality Forgings (NSE:PSFL) has a ROE % of 11.92% as of Mar. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Paramount Speciality Forgings and its competitors. This is 24% below median its historical median of 15.60. According to the industry distribution chart, Paramount Speciality Forgings ranks #761 out of 3004 companies in the Industrial Products industry, placing it in the top 25.3%.
Is Paramount Speciality Forgings' ROE % too high?
Paramount Speciality Forgings' current ROE % of 11.92% is 24% below median its 10-year median of 15.60. The Industrial Products industry median ROE % is 5.87. Paramount Speciality Forgings' value of 11.92% is 103.2% above this industry median. Based on the distribution chart, Paramount Speciality Forgings ranks #761 out of 3004 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Paramount Speciality Forgings has a GF Score™ of 13/100, reflecting its overall financial health beyond just this single metric.
How does Paramount Speciality Forgings' ROE % compare to ATI and CRS?
According to the Industrial Products industry distribution chart, Paramount Speciality Forgings ranks #761 out of 3004 companies for ROE %. This puts Paramount Speciality Forgings in the upper half of its industry. The industry median ROE % is 5.87. Paramount Speciality Forgings' value of 11.92% is 103.2% above this benchmark. While the company's 10-year median is 15.60 vs. the industry median of 5.87, Paramount Speciality Forgings 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 5.87, based on 3,004 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. Paramount Speciality Forgings's current ROE % of 11.92% is 103.2% 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 Paramount Speciality Forgings and its competitors. For the Industrial Products industry, the median ROE % is 5.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paramount Speciality Forgings's current ROE % is 11.92%, which is 24% below median its own 10-year median of 15.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Paramount Speciality Forgings stock overvalued right now?
Paramount Speciality Forgings (NSE:PSFL) has a current ROE % of 11.92%. The current ROE % is 11.92%, which is 24% below median its 10-year median of 15.60 and 103.2% above the Industrial Products industry median of 5.87. Paramount Speciality Forgings' overall GF Score™ is 13/100 with 5 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 Paramount Speciality Forgings (NSE:PSFL), the current ROE % is 11.92% as of Mar. 2025. 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.
Paramount Speciality Forgings Business Description
Paramount Speciality Forgings Ltd is engaged in manufacturing steel forgings in India. It manufactures and provides forged components ranging in weight from one kilogram to four metric tons in rough or finish-machined condition. Its products are used in industries such as Petrochemicals, Chemicals, Fertilizers, Oil and Gas, Nuclear Power, and other heavy engineering sectors. The company only operates in the sale of carbon steel and stainless steel flanges and fittings, and other engineering goods made from steel and stainless steel, or any other goods and merchandise.
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