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Iris ClothingsNSE:IRISDOREME +0.73%83 Return-on-Tangible-Equity is 18.16% as of Mar. 2026, which is 4% below its 10-year median of 18.91. GuruFocus rates NSE:IRISDOREME with a GF Score™ of 83/100 and a GF Value™ of ₹43.98 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,021 Manufacturing - Apparel & Accessories companies, Iris Clothings ranks better than 71.79% 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. Iris Clothings's annualized net income for the quarter that ended in Mar. 2026 was ₹257 Mil. Iris Clothings's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹1,417 Mil. Therefore, Iris Clothings's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 18.16%.
The historical rank and industry rank for Iris Clothings's Return-on-Tangible-Equity or its related term are showing as below:
NSE:IRISDOREME'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 10.79 Med: 18.91 Max: 40.03
Current: 10.79
During the past 13 years, Iris Clothings's highest Return-on-Tangible-Equity was 40.03%. The lowest was 10.79%. And the median was 18.91%.
NSE:IRISDOREME's Return-on-Tangible-Equity is ranked better than 71.79% of 1021
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 4.47
vs NSE:IRISDOREME: 10.79
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.
Iris Clothings Return-on-Tangible-Equity Related Terms
Iris Clothings Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Iris Clothings'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.
NSE:IRISDOREME vs RL, LEVI, VFC: Return-on-Tangible-Equity Comparison
For the Apparel Manufacturing subindustry, Iris Clothings'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.
Iris Clothings Return-on-Tangible-Equity vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Iris Clothings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Iris Clothings'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 18.16% mean?
Iris Clothings (NSE:IRISDOREME) has a Return-on-Tangible-Equity of 18.16% 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 Iris Clothings and its competitors. This is near median its historical median of 18.91. Over the past decade, Iris Clothings' Return-on-Tangible-Equity has ranged from 10.79 to 40.03. According to the industry distribution chart, Iris Clothings ranks #288 out of 1021 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 28.2%.
Is Iris Clothings' Return-on-Tangible-Equity too high?
Iris Clothings' current Return-on-Tangible-Equity of 18.16% is near median its 10-year median of 18.91. Over the past 10 years, this metric has ranged from a low of 10.79 to a high of 40.03. The Manufacturing - Apparel & Accessories industry median Return-on-Tangible-Equity is 4.47. Iris Clothings' value of 18.16% is 306.3% above this industry median. Based on the distribution chart, Iris Clothings ranks #288 out of 1021 companies in the Manufacturing - Apparel & Accessories industry, which is above the industry midpoint. Overall, Iris Clothings has a GF Score™ of 83/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Iris Clothings' Return-on-Tangible-Equity compare to RL and LEVI?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Iris Clothings ranks #288 out of 1021 companies for Return-on-Tangible-Equity. This puts Iris Clothings in the upper half of its industry. The industry median Return-on-Tangible-Equity is 4.47. Iris Clothings' value of 18.16% is 306.3% above this benchmark. Historically, Iris Clothings' own Return-on-Tangible-Equity has ranged from 10.79 to 40.03 over the past decade. While the company's 10-year median is 18.91 vs. the industry median of 4.47, Iris Clothings 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 Manufacturing - Apparel & Accessories company?
The median Return-on-Tangible-Equity among Manufacturing - Apparel & Accessories companies is 4.47, based on 1,021 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. Iris Clothings's current Return-on-Tangible-Equity of 18.16% is 306.3% 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 Iris Clothings and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Return-on-Tangible-Equity is 4.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Iris Clothings's current Return-on-Tangible-Equity is 18.16%, which is near median its own 10-year median of 18.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Iris Clothings stock overvalued right now?
Based on GuruFocus' analysis, Iris Clothings (NSE:IRISDOREME) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹43.98, compared to a current price of ₹57.93 — trading 31.7% above its estimated fair value. The current Return-on-Tangible-Equity is 18.16%, which is near median its 10-year median of 18.91 and 306.3% above the Manufacturing - Apparel & Accessories industry median of 4.47. Iris Clothings' overall GF Score™ is 83/100 with 5 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 Iris Clothings (NSE:IRISDOREME), the current Return-on-Tangible-Equity is 18.16% 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 Iris Clothings (NSE:IRISDOREME) Overvalued in 2026?
Based on GuruFocus' analysis, Iris Clothings stock appears to be overvalued.
The current stock price of ₹57.93 is trading 31.7% above its estimated GF Value™ of ₹43.98.
GuruFocus considers Iris Clothings to be Significantly Overvalued.
Key valuation signals for NSE:IRISDOREME:
Return-on-Tangible-Equity: 18.16% (near median its 10-year median of 18.91)
GF Value™: ₹43.98 vs. price of ₹57.93 (31.7% above fair value)
Industry Position: 306.3% above the Manufacturing - Apparel & Accessories median (#288 of 1021)
No single metric tells the full story. See the NSE:IRISDOREME stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Iris Clothings Ltd is an India-based company mainly engaged in the manufacturing, designing, branding, and selling of kids' wear under the brand name DoReMe. The company caters to the kids' wear category, mostly juniors, including various kinds of apparel and related products for all infants, boys, and girls. The products offered by the company include tops, t-shirts, pants, shorts, frocks, dresses, and towels.
83GF Score
Get the complete analysis for NSE:IRISDOREME
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