Encompass Design IndiaNSE:ENCOMPAS +0.80%20 Return-on-Tangible-Equity is 63.37% as of Sep. 2025, which is 52% below its 10-year median of 130.71. GuruFocus rates NSE:ENCOMPAS with a GF Score™ of 20/100. The stock has 4 warning signs investors should review. Among 1,058 Retail - Cyclical companies, Encompass Design India ranks better than 82.04% 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. Encompass Design India's annualized net income for the quarter that ended in Sep. 2025 was ₹100.9 Mil. Encompass Design India's average shareholder tangible equity for the quarter that ended in Sep. 2025 was ₹159.3 Mil. Therefore, Encompass Design India's annualized Return-on-Tangible-Equity for the quarter that ended in Sep. 2025 was 63.37%.
The historical rank and industry rank for Encompass Design India's Return-on-Tangible-Equity or its related term are showing as below:
NSE:ENCOMPAS'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 31.69 Med: 130.71 Max: 130.71
Current: 31.69
During the past 3 years, Encompass Design India's highest Return-on-Tangible-Equity was 130.71%. The lowest was 31.69%. And the median was 130.71%.
NSE:ENCOMPAS's Return-on-Tangible-Equity is ranked better than 82.04% of 1058
companies
in the Retail - Cyclical industry
Industry Median: 8.325
vs NSE:ENCOMPAS: 31.69
Encompass Design India (NSE:ENCOMPAS) Return-on-Tangible-Equity Explanation
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.
Encompass Design India Return-on-Tangible-Equity Related Terms
Encompass Design India Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Encompass Design India'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.
Encompass Design India Return-on-Tangible-Equity Chart
Encompass Design India Annual Data
Trend
Mar23
Mar24
Mar25
Return-on-Tangible-Equity
0.00
Negative Tangible Equity
130.71
Encompass Design India Semi-Annual Data
Mar23
Mar24
Mar25
Sep25
Return-on-Tangible-Equity
0.00
0.00
0.00
63.37
NSE:ENCOMPAS vs HD, LOW, FND: Return-on-Tangible-Equity Comparison
For the Home Improvement Retail subindustry, Encompass Design India'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.
Encompass Design India Return-on-Tangible-Equity vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Encompass Design India's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Encompass Design India'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 two times the semi-annual (Sep. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 63.37% mean?
Encompass Design India (NSE:ENCOMPAS) has a Return-on-Tangible-Equity of 63.37% as of Sep. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Encompass Design India and its competitors. This is 52% below median its historical median of 130.71. Over the past decade, Encompass Design India's Return-on-Tangible-Equity has ranged from 31.69 to 130.71. According to the industry distribution chart, Encompass Design India ranks #190 out of 1058 companies in the Retail - Cyclical industry, placing it in the top 18%.
Is Encompass Design India's Return-on-Tangible-Equity too high?
Encompass Design India's current Return-on-Tangible-Equity of 63.37% is 52% below median its 10-year median of 130.71. Over the past 10 years, this metric has ranged from a low of 31.69 to a high of 130.71. The Retail - Cyclical industry median Return-on-Tangible-Equity is 8.33. Encompass Design India's value of 63.37% is 661.2% above this industry median. Based on the distribution chart, Encompass Design India ranks #190 out of 1058 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Encompass Design India has a GF Score™ of 20/100, reflecting its overall financial health beyond just this single metric.
How does Encompass Design India's Return-on-Tangible-Equity compare to HD and LOW?
According to the Retail - Cyclical industry distribution chart, Encompass Design India ranks #190 out of 1058 companies for Return-on-Tangible-Equity. This places Encompass Design India in the top 18% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.33. Encompass Design India's value of 63.37% is 661.2% above this benchmark. Historically, Encompass Design India's own Return-on-Tangible-Equity has ranged from 31.69 to 130.71 over the past decade. While the company's 10-year median is 130.71 vs. the industry median of 8.33, Encompass Design India 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-Equity for a Retail - Cyclical company?
The median Return-on-Tangible-Equity among Retail - Cyclical companies is 8.33, based on 1,058 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. Encompass Design India's current Return-on-Tangible-Equity of 63.37% is 661.2% 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-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 Encompass Design India and its competitors. For the Retail - Cyclical industry, the median Return-on-Tangible-Equity is 8.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Encompass Design India's current Return-on-Tangible-Equity is 63.37%, which is 52% below median its own 10-year median of 130.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Encompass Design India stock overvalued right now?
Encompass Design India (NSE:ENCOMPAS) has a current Return-on-Tangible-Equity of 63.37%. The current Return-on-Tangible-Equity is 63.37%, which is 52% below median its 10-year median of 130.71 and 661.2% above the Retail - Cyclical industry median of 8.33. Encompass Design India's overall GF Score™ is 20/100 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Encompass Design India (NSE:ENCOMPAS), the current Return-on-Tangible-Equity is 63.37% as of Sep. 2025. 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.
Encompass Design India Ltd is principally engaged in the manufacturing of home and lifestyle products, such as bed sheets, curtains, comforters, table linens, and pillow covers, as well as food products, with a primary focus on sauces, marketed under its own brands. The company is also involved in the trading of agro-based products, cotton, and fabrics. The company's business operations are spread across multiple segments, including manufacturing of home and lifestyle products, development and marketing of food products, trading of fabrics, cotton and agro-based products, and (iv) providing digital and e-commerce support services. The company derives revenue from the manufacturing and export of its Textile and Sauces Food brands.
20GF 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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