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 Credit Services subindustry, Spandana Sphoorty Financial'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.
Spandana Sphoorty Financial ROE % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Spandana Sphoorty Financial's ROE % distribution charts can be found below:
* The bar in red indicates where Spandana Sphoorty Financial'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.
Spandana Sphoorty Financial (NSE:SPANDANA) has a ROE % of 0.99% 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 Spandana Sphoorty Financial and its competitors. This is 90% below median its historical median of 10.13. According to the industry distribution chart, Spandana Sphoorty Financial ranks #502 out of 529 companies in the Credit Services industry, placing it in the top 94.9%.
Is Spandana Sphoorty Financial's ROE % too high?
Spandana Sphoorty Financial's current ROE % of 0.99% is 90% below median its 10-year median of 10.13. The Credit Services industry median ROE % is 6.61. Spandana Sphoorty Financial's value of 0.99% is 85% below this industry median. Based on the distribution chart, Spandana Sphoorty Financial ranks #502 out of 529 companies in the Credit Services industry, which is in the bottom quartile relative to peers. Overall, Spandana Sphoorty Financial has a GF Score™ of 64/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Spandana Sphoorty Financial's ROE % compare to V and MA?
According to the Credit Services industry distribution chart, Spandana Sphoorty Financial ranks #502 out of 529 companies for ROE %. This places Spandana Sphoorty Financial in the lower half of its industry. The industry median ROE % is 6.61. Spandana Sphoorty Financial's value of 0.99% is 85% below this benchmark. While the company's 10-year median is 10.13 vs. the industry median of 6.61, Spandana Sphoorty Financial 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 Credit Services company?
The median ROE % among Credit Services companies is 6.61, based on 529 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. Spandana Sphoorty Financial's current ROE % of 0.99% is 85% 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 Spandana Sphoorty Financial and its competitors. For the Credit Services industry, the median ROE % is 6.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Spandana Sphoorty Financial's current ROE % is 0.99%, which is 90% below median its own 10-year median of 10.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Spandana Sphoorty Financial stock overvalued right now?
Based on GuruFocus' analysis, Spandana Sphoorty Financial (NSE:SPANDANA) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹217.52, compared to a current price of ₹266.80 — trading 22.7% above its estimated fair value. The current ROE % is 0.99%, which is 90% below median its 10-year median of 10.13 and 85% below the Credit Services industry median of 6.61. Spandana Sphoorty Financial's overall GF Score™ is 64/100 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 Spandana Sphoorty Financial (NSE:SPANDANA), the current ROE % is 0.99% 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 Spandana Sphoorty Financial (NSE:SPANDANA) Overvalued in 2026?
Based on GuruFocus' analysis, Spandana Sphoorty Financial stock appears to be overvalued.
The current stock price of ₹266.80 is trading 22.7% above its estimated GF Value™ of ₹217.52.
GuruFocus considers Spandana Sphoorty Financial to be Modestly Overvalued.
Key valuation signals for NSE:SPANDANA:
ROE %: 0.99% (90% below median its 10-year median of 10.13)
GF Value™: ₹217.52 vs. price of ₹266.80 (22.7% above fair value)
Industry Position: 85% below the Credit Services median (#502 of 529)
No single metric tells the full story. See the NSE:SPANDANA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Spandana Sphoorty Financial Ltd is a rural-focused nonbanking financial company (NBFC) and microfinance institution (MFI) with an extensive footprint across India. Its primary objective is to provide incomegenerating loans through the joint liability group (JLG) model, focusing on supporting women from low-income rural and semi-urban households. The group is also expanding to Loan Against Property (LAP) and Nano loans through subsidiary. It has a single business segment which is financing. The company operates in India and generates key revenue from giving loans.
64GF Score
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