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Axita CottonBOM:542285 +0.13%52 Return-on-Tangible-Asset is 16.79% as of Jun. 2026, which is 400% above its 10-year median of 3.36. GuruFocus rates BOM:542285 with a GF Score™ of 52/100 and a GF Value™ of ₹3.74 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 1,072 Manufacturing - Apparel & Accessories companies, Axita Cotton ranks better than 67.16% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Axita Cotton's annualizedNet Income for the quarter that ended in Jun. 2026 was ₹144 Mil. Axita Cotton's average total tangible assets for the quarter that ended in Jun. 2026 was ₹855 Mil. Therefore, Axita Cotton's annualized Return-on-Tangible-Asset for the quarter that ended in Jun. 2026 was 16.79%.
The historical rank and industry rank for Axita Cotton's Return-on-Tangible-Asset or its related term are showing as below:
BOM:542285'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 0.17 Med: 3.36 Max: 22.71
Current: 4.48
During the past 13 years, Axita Cotton's highest Return-on-Tangible-Asset was 22.71%. The lowest was 0.17%. And the median was 3.36%.
BOM:542285's Return-on-Tangible-Asset is ranked better than 67.16% of 1072
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 2.36
vs BOM:542285: 4.48
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Axita Cotton Return-on-Tangible-Asset Related Terms
Axita Cotton Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Axita Cotton's Return-on-Tangible-Asset 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 Textile Manufacturing subindustry, Axita Cotton's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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.
Axita Cotton Return-on-Tangible-Asset vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Axita Cotton's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Axita Cotton's Return-on-Tangible-Asset 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 Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Jun. 2026) net income data.
What does a Return-on-Tangible-Asset of 16.79% mean?
Axita Cotton (BOM:542285) has a Return-on-Tangible-Asset of 16.79% as of Jun. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Axita Cotton and its competitors. This is 400% above median its historical median of 3.36. Over the past decade, Axita Cotton's Return-on-Tangible-Asset has ranged from 0.17 to 22.71. According to the industry distribution chart, Axita Cotton ranks #352 out of 1072 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 32.8%.
Is Axita Cotton's Return-on-Tangible-Asset too high?
Axita Cotton's current Return-on-Tangible-Asset of 16.79% is 400% above median its 10-year median of 3.36. Over the past 10 years, this metric has ranged from a low of 0.17 to a high of 22.71. The Manufacturing - Apparel & Accessories industry median Return-on-Tangible-Asset is 2.36. Axita Cotton's value of 16.79% is 611.4% above this industry median. Based on the distribution chart, Axita Cotton ranks #352 out of 1072 companies in the Manufacturing - Apparel & Accessories industry, which is above the industry midpoint. Overall, Axita Cotton has a GF Score™ of 52/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Axita Cotton's Return-on-Tangible-Asset compare to competitors?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Axita Cotton ranks #352 out of 1072 companies for Return-on-Tangible-Asset. This puts Axita Cotton in the upper half of its industry. The industry median Return-on-Tangible-Asset is 2.36. Axita Cotton's value of 16.79% is 611.4% above this benchmark. Historically, Axita Cotton's own Return-on-Tangible-Asset has ranged from 0.17 to 22.71 over the past decade. While the company's 10-year median is 3.36 vs. the industry median of 2.36, Axita Cotton 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 Return-on-Tangible-Asset for a Manufacturing - Apparel & Accessories company?
The median Return-on-Tangible-Asset among Manufacturing - Apparel & Accessories companies is 2.36, based on 1,072 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Axita Cotton's current Return-on-Tangible-Asset of 16.79% is 611.4% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Axita Cotton and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Return-on-Tangible-Asset is 2.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Axita Cotton's current Return-on-Tangible-Asset is 16.79%, which is 400% above median its own 10-year median of 3.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Axita Cotton stock overvalued right now?
Based on GuruFocus' analysis, Axita Cotton (BOM:542285) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹3.74, compared to a current price of ₹7.96 — trading 112.8% above its estimated fair value. The current Return-on-Tangible-Asset is 16.79%, which is 400% above median its 10-year median of 3.36 and 611.4% above the Manufacturing - Apparel & Accessories industry median of 2.36. Axita Cotton's overall GF Score™ is 52/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Axita Cotton (BOM:542285), the current Return-on-Tangible-Asset is 16.79% as of Jun. 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 Axita Cotton (BOM:542285) Overvalued in 2026?
Based on GuruFocus' analysis, Axita Cotton stock appears to be overvalued.
The current stock price of ₹7.96 is trading 112.8% above its estimated GF Value™ of ₹3.74.
GuruFocus considers Axita Cotton to be Significantly Overvalued.
Key valuation signals for BOM:542285:
Return-on-Tangible-Asset: 16.79% (400% above median its 10-year median of 3.36)
GF Value™: ₹3.74 vs. price of ₹7.96 (112.8% above fair value)
Industry Position: 611.4% above the Manufacturing - Apparel & Accessories median (#352 of 1072)
No single metric tells the full story. See the BOM:542285 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Axita Cotton Ltd is an India-based company engaged in the manufacturing, processing, and finishing of Kapas, cotton bales, and cotton seeds. It earns revenue from bales sales domestically, bales sales exports, and Shankar Kapasia.
52GF Score
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