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Aarnav FashionsBOM:539562 -4.01%74 Return-on-Tangible-Equity is 3.62% as of Jun. 2026, which is 30% below its 10-year median of 5.14. GuruFocus rates BOM:539562 with a GF Score™ of 74/100 and a GF Value™ of ₹42.33 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,023 Manufacturing - Apparel & Accessories companies, Aarnav Fashions ranks better than 50.05% 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. Aarnav Fashions's annualized net income for the quarter that ended in Jun. 2026 was ₹67 Mil. Aarnav Fashions's average shareholder tangible equity for the quarter that ended in Jun. 2026 was ₹1,856 Mil. Therefore, Aarnav Fashions's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 3.62%.
The historical rank and industry rank for Aarnav Fashions's Return-on-Tangible-Equity or its related term are showing as below:
BOM:539562'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0.23 Med: 5.14 Max: 18.98
Current: 5.07
During the past 12 years, Aarnav Fashions's highest Return-on-Tangible-Equity was 18.98%. The lowest was 0.23%. And the median was 5.14%.
BOM:539562's Return-on-Tangible-Equity is ranked better than 50.05% of 1023
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 5.07
vs BOM:539562: 5.07
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.
Aarnav Fashions Return-on-Tangible-Equity Related Terms
Aarnav Fashions Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Aarnav Fashions'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, Aarnav Fashions'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.
Aarnav Fashions Return-on-Tangible-Equity vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Aarnav Fashions's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Aarnav Fashions'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 (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 3.62% mean?
Aarnav Fashions (BOM:539562) has a Return-on-Tangible-Equity of 3.62% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Aarnav Fashions and its competitors. This is 30% below median its historical median of 5.14. Over the past decade, Aarnav Fashions' Return-on-Tangible-Equity has ranged from 0.23 to 18.98. According to the industry distribution chart, Aarnav Fashions ranks #511 out of 1023 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 50%.
Is Aarnav Fashions' Return-on-Tangible-Equity too high?
Aarnav Fashions' current Return-on-Tangible-Equity of 3.62% is 30% below median its 10-year median of 5.14. Over the past 10 years, this metric has ranged from a low of 0.23 to a high of 18.98. The Manufacturing - Apparel & Accessories industry median Return-on-Tangible-Equity is 5.07. Aarnav Fashions' value of 3.62% is 28.6% below this industry median. Based on the distribution chart, Aarnav Fashions ranks #511 out of 1023 companies in the Manufacturing - Apparel & Accessories industry, which is above the industry midpoint. Overall, Aarnav Fashions has a GF Score™ of 74/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Aarnav Fashions' Return-on-Tangible-Equity compare to competitors?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Aarnav Fashions ranks #511 out of 1023 companies for Return-on-Tangible-Equity. This puts Aarnav Fashions in the upper half of its industry. The industry median Return-on-Tangible-Equity is 5.07. Aarnav Fashions' value of 3.62% is 28.6% below this benchmark. Historically, Aarnav Fashions' own Return-on-Tangible-Equity has ranged from 0.23 to 18.98 over the past decade. While the company's 10-year median is 5.14 vs. the industry median of 5.07, Aarnav Fashions has consistently been below 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-Equity for a Manufacturing - Apparel & Accessories company?
The median Return-on-Tangible-Equity among Manufacturing - Apparel & Accessories companies is 5.07, based on 1,023 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. Aarnav Fashions's current Return-on-Tangible-Equity of 3.62% is 28.6% 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 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 Aarnav Fashions and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Return-on-Tangible-Equity is 5.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aarnav Fashions's current Return-on-Tangible-Equity is 3.62%, which is 30% below median its own 10-year median of 5.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aarnav Fashions stock overvalued right now?
Based on GuruFocus' analysis, Aarnav Fashions (BOM:539562) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹42.33, compared to a current price of ₹31.85 — trading 24.8% below its estimated fair value. The current Return-on-Tangible-Equity is 3.62%, which is 30% below median its 10-year median of 5.14 and 28.6% below the Manufacturing - Apparel & Accessories industry median of 5.07. Aarnav Fashions' overall GF Score™ is 74/100 with 2 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 Aarnav Fashions (BOM:539562), the current Return-on-Tangible-Equity is 3.62% 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 Aarnav Fashions (BOM:539562) Overvalued in 2026?
Based on GuruFocus' analysis, Aarnav Fashions stock appears to be undervalued.
The current stock price of ₹31.85 is trading 24.8% below its estimated GF Value™ of ₹42.33.
GuruFocus considers Aarnav Fashions to be Modestly Undervalued.
Key valuation signals for BOM:539562:
Return-on-Tangible-Equity: 3.62% (30% below median its 10-year median of 5.14)
GF Value™: ₹42.33 vs. price of ₹31.85 (24.8% below fair value)
Industry Position: 28.6% below the Manufacturing - Apparel & Accessories median (#511 of 1023)
No single metric tells the full story. See the BOM:539562 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aarnav Fashions Ltd is an Indian company mainly engaged in the business of manufacturing and selling various textile products. It is involved in the weaving and processing of various fabrics like Lycra, Twill, Non-Lycra, and Drill, and offers various textile products, including shirting, suiting, quilts, dohars, bed sheets, kids' and women's wear. Geographically, the company generates maximum revenue from its business in India and also exports its products to other markets.
74GF Score
Get the complete analysis for BOM:539562
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