Rama TelecomNSE:RTL -1.77%18 ROE % is 51.66% as of Mar. 2025, which is 111% above its 10-year median of 24.49. GuruFocus rates NSE:RTL with a GF Score™ of 18/100. The stock has 8 warning signs investors should review. Among 349 Telecommunication Services companies, Rama Telecom ranks better than 95.13% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Rama Telecom's annualized net income for the quarter that ended in Mar. 2025 was ₹72.1 Mil. Rama Telecom's average Total Stockholders Equity over the quarter that ended in Mar. 2025 was ₹139.6 Mil. Therefore, Rama Telecom's annualized ROE % for the quarter that ended in Mar. 2025 was 51.66%.
The historical rank and industry rank for Rama Telecom's ROE % or its related term are showing as below:
NSE:RTL'
s ROE % Range Over the Past 10 Years
Min: 16.98 Med: 24.49 Max: 44.28
Current: 44.28
During the past 4 years, Rama Telecom's highest ROE % was 44.28%. The lowest was 16.98%. And the median was 24.49%.
NSE:RTL's ROE % is ranked better than 95.13% of 349
companies
in the Telecommunication Services industry
Industry Median: 7.41
vs NSE:RTL: 44.28
Rama Telecom (NSE:RTL) ROE % Explanation
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. 2025) net income data. The Revenue data used here is two times the semi-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.
Rama Telecom ROE % Related Terms
Rama Telecom ROE % Historical Data
* Premium members only.
The historical data trend for Rama Telecom'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.
Rama Telecom ROE % Chart
Rama Telecom Annual Data
Trend
Mar22
Mar23
Mar24
Mar25
ROE %
17.25
16.98
31.73
42.53
Rama Telecom Semi-Annual Data
Mar22
Mar23
Mar24
Sep24
Mar25
ROE %
0.00
0.00
0.00
36.64
51.66
NSE:RTL vs TMUS, VZ, T: ROE % Comparison
For the Telecom Services subindustry, Rama Telecom'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.
Rama Telecom ROE % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Rama Telecom's ROE % distribution charts can be found below:
* The bar in red indicates where Rama Telecom'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. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Rama Telecom (NSE:RTL) has a ROE % of 51.66% 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 Rama Telecom and its competitors. This is 111% above median its historical median of 24.49. Over the past decade, Rama Telecom's ROE % has ranged from 16.98 to 44.28. According to the industry distribution chart, Rama Telecom ranks #17 out of 349 companies in the Telecommunication Services industry, placing it in the top 4.9%.
Is Rama Telecom's ROE % too high?
Rama Telecom's current ROE % of 51.66% is 111% above median its 10-year median of 24.49. Over the past 10 years, this metric has ranged from a low of 16.98 to a high of 44.28. The Telecommunication Services industry median ROE % is 7.41. Rama Telecom's value of 51.66% is 597.2% above this industry median. Based on the distribution chart, Rama Telecom ranks #17 out of 349 companies in the Telecommunication Services industry, which is in the top quartile — a strong position relative to peers. Overall, Rama Telecom has a GF Score™ of 18/100, reflecting its overall financial health beyond just this single metric.
How does Rama Telecom's ROE % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Rama Telecom ranks #17 out of 349 companies for ROE %. This places Rama Telecom in the top 5% of its industry — outperforming the majority of peers. The industry median ROE % is 7.41. Rama Telecom's value of 51.66% is 597.2% above this benchmark. Historically, Rama Telecom's own ROE % has ranged from 16.98 to 44.28 over the past decade. While the company's 10-year median is 24.49 vs. the industry median of 7.41, Rama Telecom 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 a Telecommunication Services company?
The median ROE % among Telecommunication Services companies is 7.41, based on 349 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. Rama Telecom's current ROE % of 51.66% is 597.2% 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 Rama Telecom and its competitors. For the Telecommunication Services industry, the median ROE % is 7.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rama Telecom's current ROE % is 51.66%, which is 111% above median its own 10-year median of 24.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rama Telecom stock overvalued right now?
Rama Telecom (NSE:RTL) has a current ROE % of 51.66%. The current ROE % is 51.66%, which is 111% above median its 10-year median of 24.49 and 597.2% above the Telecommunication Services industry median of 7.41. Rama Telecom's overall GF Score™ is 18/100 with 8 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 Rama Telecom (NSE:RTL), the current ROE % is 51.66% 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.
Rama Telecom Ltd is a technology-driven engineering company with expertise in optical fiber, providing end to end customized networking solutions in the telecom forefront. The company continuously supports its services to the Railways, Telecom, Petroleum and Airport sector. Its business services are provided to the Railway Sector and Telecom Sector. It operates in a single Business segment, which is the business of Trading & installation works of contractors. The company provides customized E2E networking solutions in the Telecom & Datacom forefront.
18GF Score
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