SRM ContractorsNSE:SRM -0.31%50 ROE % is 58.31% as of Mar. 2026, which is 79% above its 10-year median of 32.58. GuruFocus rates NSE:SRM with a GF Score™ of 50/100. The stock has 1 warning sign investors should review. Among 1,738 Construction companies, SRM Contractors ranks better than 93.73% on this metric.
The historical rank and industry rank for SRM Contractors's ROE % or its related term are showing as below:
NSE:SRM'
s ROE % Range Over the Past 10 Years
Min: 27.17 Med: 32.58 Max: 49.31
Current: 35.22
During the past 6 years, SRM Contractors's highest ROE % was 49.31%. The lowest was 27.17%. And the median was 32.58%.
NSE:SRM's ROE % is ranked better than 93.73% of 1738
companies
in the Construction industry
Industry Median: 6.715
vs NSE:SRM: 35.22
SRM Contractors (NSE:SRM) 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 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.
SRM Contractors ROE % Related Terms
SRM Contractors ROE % Historical Data
* Premium members only.
The historical data trend for SRM Contractors'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.
For the Engineering & Construction subindustry, SRM Contractors'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.
SRM Contractors ROE % vs Construction Industry
For the Construction industry and Industrials sector, SRM Contractors's ROE % distribution charts can be found below:
* The bar in red indicates where SRM Contractors'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.
SRM Contractors (NSE:SRM) has a ROE % of 58.31% 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 SRM Contractors and its competitors. This is 79% above median its historical median of 32.58. Over the past decade, SRM Contractors' ROE % has ranged from 27.17 to 49.31. According to the industry distribution chart, SRM Contractors ranks #109 out of 1738 companies in the Construction industry, placing it in the top 6.3%.
Is SRM Contractors' ROE % too high?
SRM Contractors' current ROE % of 58.31% is 79% above median its 10-year median of 32.58. Over the past 10 years, this metric has ranged from a low of 27.17 to a high of 49.31. The Construction industry median ROE % is 6.72. SRM Contractors' value of 58.31% is 768.4% above this industry median. Based on the distribution chart, SRM Contractors ranks #109 out of 1738 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, SRM Contractors has a GF Score™ of 50/100, reflecting its overall financial health beyond just this single metric.
How does SRM Contractors' ROE % compare to PWR and FIX?
According to the Construction industry distribution chart, SRM Contractors ranks #109 out of 1738 companies for ROE %. This places SRM Contractors in the top 6% of its industry — outperforming the majority of peers. The industry median ROE % is 6.72. SRM Contractors' value of 58.31% is 768.4% above this benchmark. Historically, SRM Contractors' own ROE % has ranged from 27.17 to 49.31 over the past decade. While the company's 10-year median is 32.58 vs. the industry median of 6.72, SRM Contractors 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 Construction company?
The median ROE % among Construction companies is 6.72, based on 1,738 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. SRM Contractors's current ROE % of 58.31% is 768.4% 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 SRM Contractors and its competitors. For the Construction industry, the median ROE % is 6.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SRM Contractors's current ROE % is 58.31%, which is 79% above median its own 10-year median of 32.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SRM Contractors stock overvalued right now?
SRM Contractors (NSE:SRM) has a current ROE % of 58.31%. The current ROE % is 58.31%, which is 79% above median its 10-year median of 32.58 and 768.4% above the Construction industry median of 6.72. SRM Contractors' overall GF Score™ is 50/100 with 1 warning sign 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 SRM Contractors (NSE:SRM), the current ROE % is 58.31% 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.
SRM Contractors Ltd is an engineering, construction, and development company. It is engaged in the construction of roads (including bridges), tunnels, drainage systems, irrigation projects, food control infrastructure, slope stabilisation works, and other miscellaneous civil construction activities in Jammu and Kashmir and Ladakh. The business of the company is segregated into the following core service verticals: Road Projects, Tunnel Projects, Slope Stabilization, and Miscellaneous Civil Construction. It undertakes construction works both as an EPC contractor and on an item rate basis for infrastructure projects.
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