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Vardhman PolytexBOM:514175 -4.40%49 Return-on-Tangible-Equity is Negative Tangible Equity% as of Mar. 2026. GuruFocus rates BOM:514175 with a GF Score™ of 49/100 and a GF Value™ of ₹4.99 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,018 Manufacturing - Apparel & Accessories companies, Vardhman Polytex ranks better than 99.9% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Vardhman Polytex's annualized net income for the quarter that ended in Mar. 2026 was ₹35 Mil. Vardhman Polytex's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹-1,972 Mil. Therefore, Vardhman Polytex's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was Negative Tangible Equity%.
The historical rank and industry rank for Vardhman Polytex's Return-on-Tangible-Equity or its related term are showing as below:
BOM:514175'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0 Med: 0 Max: 0
Current: Negative Tangible Equity
BOM:514175's Return-on-Tangible-Equity is ranked better than 99.9% of 1018
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 4.425
vs BOM:514175: Negative Tangible Equity
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity 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 Return-on-Tangible-Equitys can be extremely high.
Vardhman Polytex Return-on-Tangible-Equity Related Terms
Vardhman Polytex Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Vardhman Polytex's Return-on-Tangible-Equity 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, Vardhman Polytex's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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.
Vardhman Polytex Return-on-Tangible-Equity vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Vardhman Polytex's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Vardhman Polytex's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of Negative Tangible Equity% mean?
Vardhman Polytex (BOM:514175) has a Return-on-Tangible-Equity of Negative Tangible Equity% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Vardhman Polytex and its competitors. According to the industry distribution chart, Vardhman Polytex ranks #1 out of 1018 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 0.099999999999994%.
Is Vardhman Polytex's Return-on-Tangible-Equity too high?
Vardhman Polytex's current Return-on-Tangible-Equity is Negative Tangible Equity%. Based on the distribution chart, Vardhman Polytex ranks #1 out of 1018 companies in the Manufacturing - Apparel & Accessories industry, which is in the top quartile — a strong position relative to peers. Overall, Vardhman Polytex has a GF Score™ of 49/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Vardhman Polytex's Return-on-Tangible-Equity compare to competitors?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Vardhman Polytex ranks #1 out of 1018 companies for Return-on-Tangible-Equity. This places Vardhman Polytex in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 4.43. 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-Equity for a Manufacturing - Apparel & Accessories company?
The median Return-on-Tangible-Equity among Manufacturing - Apparel & Accessories companies is 4.43, based on 1,018 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Vardhman Polytex and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Return-on-Tangible-Equity is 4.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vardhman Polytex's current Return-on-Tangible-Equity is Negative Tangible Equity%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vardhman Polytex stock overvalued right now?
Based on GuruFocus' analysis, Vardhman Polytex (BOM:514175) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹4.99, compared to a current price of ₹6.09 — trading 22% above its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. Vardhman Polytex's overall GF Score™ is 49/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Vardhman Polytex (BOM:514175), the current Return-on-Tangible-Equity is Negative Tangible Equity% 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 Vardhman Polytex (BOM:514175) Overvalued in 2026?
Based on GuruFocus' analysis, Vardhman Polytex stock appears to be overvalued.
The current stock price of ₹6.09 is trading 22% above its estimated GF Value™ of ₹4.99.
GuruFocus considers Vardhman Polytex to be Modestly Overvalued.
No single metric tells the full story. See the BOM:514175 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Vardhman Polytex Ltd is an Indian company operating in the Textile industry. The company is engaged in the manufacturing and export of cotton fabric and branded yarn. It is also engaged in the Real Estate business. It has production facilities located in Bathinda, Ludhiana, and Nalagarh in India. The Company's principal activity is the manufacturing of yarn & garments. Its product range includes yarns, fabrics, and garments including compact yarns, Organic Cotton Yarns, Dyed Yarns, polo t-shirts, round neck t-shirts, hoodies, and sweatshirts for men, women, and kids. It generates the majority of the revenue from the Textile Business. Geographically it covers the Indian and International Market.
49GF Score
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Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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