Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
PrecotNSE:PRECOT -0.69%51 Return-on-Tangible-Equity is 9.80% as of Mar. 2026, which is 710% above its 10-year median of 1.21. GuruFocus rates NSE:PRECOT with a GF Score™ of 51/100 and a GF Value™ of ₹461.06 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,013 Manufacturing - Apparel & Accessories companies, Precot ranks better than 63.67% 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. Precot's annualized net income for the quarter that ended in Mar. 2026 was ₹470 Mil. Precot's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹4,794 Mil. Therefore, Precot's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 9.80%.
The historical rank and industry rank for Precot's Return-on-Tangible-Equity or its related term are showing as below:
NSE:PRECOT'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -6.69 Med: 1.21 Max: 26.86
Current: 7.75
During the past 13 years, Precot's highest Return-on-Tangible-Equity was 26.86%. The lowest was -6.69%. And the median was 1.21%.
NSE:PRECOT's Return-on-Tangible-Equity is ranked better than 63.67% of 1013
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 4.43
vs NSE:PRECOT: 7.75
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.
Precot Return-on-Tangible-Equity Related Terms
Precot Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Precot'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, Precot'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.
Precot Return-on-Tangible-Equity vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Precot's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Precot'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 9.80% mean?
Precot (NSE:PRECOT) has a Return-on-Tangible-Equity of 9.80% 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 Precot and its competitors. This is 710% above median its historical median of 1.21. According to the industry distribution chart, Precot ranks #368 out of 1013 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 36.3%.
Is Precot's Return-on-Tangible-Equity too high?
Precot's current Return-on-Tangible-Equity of 9.80% is 710% above median its 10-year median of 1.21. The Manufacturing - Apparel & Accessories industry median Return-on-Tangible-Equity is 4.43. Precot's value of 9.80% is 121.2% above this industry median. Based on the distribution chart, Precot ranks #368 out of 1013 companies in the Manufacturing - Apparel & Accessories industry, which is above the industry midpoint. Overall, Precot has a GF Score™ of 51/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Precot's Return-on-Tangible-Equity compare to competitors?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Precot ranks #368 out of 1013 companies for Return-on-Tangible-Equity. This puts Precot in the upper half of its industry. The industry median Return-on-Tangible-Equity is 4.43. Precot's value of 9.80% is 121.2% above this benchmark. While the company's 10-year median is 1.21 vs. the industry median of 4.43, Precot 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 4.43, based on 1,013 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. Precot's current Return-on-Tangible-Equity of 9.80% is 121.2% 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 Precot 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. Precot's current Return-on-Tangible-Equity is 9.80%, which is 710% above median its own 10-year median of 1.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Precot stock overvalued right now?
Based on GuruFocus' analysis, Precot (NSE:PRECOT) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹461.06, compared to a current price of ₹825.30 — trading 79% above its estimated fair value. The current Return-on-Tangible-Equity is 9.80%, which is 710% above median its 10-year median of 1.21 and 121.2% above the Manufacturing - Apparel & Accessories industry median of 4.43. Precot's overall GF Score™ is 51/100 with 7 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 Precot (NSE:PRECOT), the current Return-on-Tangible-Equity is 9.80% 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 Precot (NSE:PRECOT) Overvalued in 2026?
Based on GuruFocus' analysis, Precot stock appears to be overvalued.
The current stock price of ₹825.30 is trading 79% above its estimated GF Value™ of ₹461.06.
GuruFocus considers Precot to be Significantly Overvalued.
Key valuation signals for NSE:PRECOT:
Return-on-Tangible-Equity: 9.80% (710% above median its 10-year median of 1.21)
GF Value™: ₹461.06 vs. price of ₹825.30 (79% above fair value)
Industry Position: 121.2% above the Manufacturing - Apparel & Accessories median (#368 of 1013)
No single metric tells the full story. See the NSE:PRECOT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Precot Ltd operates in the textile business. The products manufactured by the group broadly fall under two categories namely Yarns and Threads; and Health and Hygiene care. Its yarn products include normal, compact, organic, slub, doubled yarn, gassed yarn, open-end yarn, polyester cotton blend yarn and polyester sewing thread. Further, its health and hygiene product line includes cosmetic make up removal pads in different shapes like round, oval, square and rectangle; roll goods in normal and organic cotton, and absorbent cotton in normal and organic. The company operates in India as well as Outside India.
51GF Score
Get the complete analysis for NSE:PRECOT
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NSE:PRECOT has been successfully added to your 
