Electrosteel Castings Fundamental Relationships

ELECTCAST -- India Stock  

INR 21.25  0.20  0.95%

The Drivers Module shows relationships between Electrosteel Castings's most relevant fundamental drivers and provides multiple suggestions of what could possibly affect the performance of Electrosteel Castings Limited over time as well as its relative position and ranking within its peers. Additionally see Investing Opportunities

Electrosteel Castings Return On Equity vs. Price to Book Fundamental Analysis

Electrosteel Castings Limited is rated below average in price to book category among related companies. It is rated below average in return on equity category among related companies reporting about  16.48  of Return On Equity per Price to Book.
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is accounting value of assets minus liabilities.
Electrosteel Castings 
P/B 
 = 
MV Per Share 
BV Per Share 
=
0.31X
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how effecently a company utilizes investments to generate income.
Electrosteel Castings 
Return on Equity 
 = 
Net Income 
Total Equity 
X
100 
=
5.11%
For most industries Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

Electrosteel Castings Return On Equity Comparison

Electrosteel Castings is currently under evaluation in return on equity category among related companies.
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