Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Aditya Birla Capital's 3-Year RORE % for the quarter that ended in Mar. 2026 was 3.24%.
The industry rank for Aditya Birla Capital's 3-Year RORE % or its related term are showing as below:
NSE:ABCAPITAL's 3-Year RORE % is ranked worse than 52.07% of 217
companies
in the Diversified Financial Services industry
Industry Median: 4.93
vs NSE:ABCAPITAL: 3.24
Aditya Birla Capital (NSE:ABCAPITAL) 3-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Aditya Birla Capital 3-Year RORE % Related Terms
Aditya Birla Capital 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Aditya Birla Capital's 3-Year RORE % 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.
NSE:ABCAPITAL vs VOYA, FRHC: 3-Year RORE % Comparison
For the Financial Conglomerates subindustry, Aditya Birla Capital's 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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.
Aditya Birla Capital 3-Year RORE % vs Diversified Financial Services Industry
For the Diversified Financial Services industry and Financial Services sector, Aditya Birla Capital's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Aditya Birla Capital's 3-Year RORE % 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 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
Aditya Birla Capital (NSE:ABCAPITAL) has a 3-Year RORE % of 3.24 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Aditya Birla Capital and its competitors. According to the industry distribution chart, Aditya Birla Capital ranks #113 out of 217 companies in the Diversified Financial Services industry, placing it in the top 52.1%.
Is Aditya Birla Capital's 3-Year RORE % too high?
Aditya Birla Capital's current 3-Year RORE % is 3.24. The Diversified Financial Services industry median 3-Year RORE % is 4.93. Aditya Birla Capital's value of 3.24 is 34.3% below this industry median. Based on the distribution chart, Aditya Birla Capital ranks #113 out of 217 companies in the Diversified Financial Services industry, which is below the industry midpoint. Overall, Aditya Birla Capital has a GF Score™ of 79/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Aditya Birla Capital's 3-Year RORE % compare to VOYA and FRHC?
According to the Diversified Financial Services industry distribution chart, Aditya Birla Capital ranks #113 out of 217 companies for 3-Year RORE %. This places Aditya Birla Capital in the lower half of its industry. The industry median 3-Year RORE % is 4.93. Aditya Birla Capital's value of 3.24 is 34.3% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for a Diversified Financial Services company?
The median 3-Year RORE % among Diversified Financial Services companies is 4.93, based on 217 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Aditya Birla Capital's current 3-Year RORE % of 3.24 is 34.3% 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 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Aditya Birla Capital and its competitors. For the Diversified Financial Services industry, the median 3-Year RORE % is 4.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aditya Birla Capital's current 3-Year RORE % is 3.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aditya Birla Capital stock overvalued right now?
Based on GuruFocus' analysis, Aditya Birla Capital (NSE:ABCAPITAL) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹252.15, compared to a current price of ₹401.25 — trading 59.1% above its estimated fair value. The current 3-Year RORE % is 3.24 and 34.3% below the Diversified Financial Services industry median of 4.93. Aditya Birla Capital's overall GF Score™ is 79/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Aditya Birla Capital (NSE:ABCAPITAL), the current 3-Year RORE % is 3.24 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 Aditya Birla Capital (NSE:ABCAPITAL) Overvalued in 2026?
Based on GuruFocus' analysis, Aditya Birla Capital stock appears to be overvalued.
The current stock price of ₹401.25 is trading 59.1% above its estimated GF Value™ of ₹252.15.
GuruFocus considers Aditya Birla Capital to be Significantly Overvalued.
Key valuation signals for NSE:ABCAPITAL:
3-Year RORE %: 3.24
GF Value™: ₹252.15 vs. price of ₹401.25 (59.1% above fair value)
Industry Position: 34.3% below the Diversified Financial Services median (#113 of 217)
No single metric tells the full story. See the NSE:ABCAPITAL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aditya Birla Capital Ltd is a financial service provider. The company's products include Non-Bank Financial Services, Housing Finance, Life Insurance, Asset Management, General Insurance Broking, Stock and Securities Broking, Health Insurance and Other Financial Services. Its operating segments consist of Lending, and Investing and Others. The Lending segment consists of Loans (personal, business, etc.), loan against property, structured finance, working capital loans, wealth management, distribution of financial products, etc. The Investing and Others segment includes investments in Group companies Geographically, it derives a majority of its revenue from India.
79GF Score
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