Arex Industries (BOM:526851) ROA %: 78.35% (As of Jun. 2026) — 1657% Above Median

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BOM:526851 Arex Industries Ltd BOM:526851
56 GF Score
Price ₹131.60
GF Value ₹123.25
Valuation Fairly Valued
! 4 Warning Signs
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What is Arex Industries ROA %?

Arex Industries BOM:526851 56 ROA % is 78.35% as of Jun. 2026, which is 1657% above its 10-year median of 4.46. GuruFocus rates BOM:526851 with a GF Score™ of 56/100 and a GF Value™ of ₹123.25 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,064 Manufacturing - Apparel & Accessories companies, Arex Industries ranks better than 98.12% on this metric.

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Arex Industries's annualized Net Income for the quarter that ended in Jun. 2026 was ₹352.3 Mil. Arex Industries's average Total Assets over the quarter that ended in Jun. 2026 was ₹449.7 Mil. Therefore, Arex Industries's annualized ROA % for the quarter that ended in Jun. 2026 was 78.35%.

The historical rank and industry rank for Arex Industries's ROA % or its related term are showing as below:

BOM:526851' s ROA % Range Over the Past 10 Years
Min: -1.58   Med: 4.46   Max: 21.93
Current: 21.93

During the past 13 years, Arex Industries's highest ROA % was 21.93%. The lowest was -1.58%. And the median was 4.46%.

BOM:526851's ROA % is ranked better than
98.12% of 1064 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 2.24 vs BOM:526851: 21.93

Arex Industries  (BOM:526851) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A bank’s ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

ROA %(Q: Jun. 2026 )
=Net Income/Total Assets
=352.312/449.672
=(Net Income / Revenue)*(Revenue / Total Assets)
=(352.312 / 571.368)*(571.368 / 449.672)
=Net Margin %*Asset Turnover
=61.66 %*1.2706
=78.35 %

Note: The Net Income data used here is four times the quarterly (Jun. 2026) net income data. The Revenue data used here is four times the quarterly (Jun. 2026) revenue data.

* 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.


Be Aware

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.


Arex Industries ROA % Related Terms


Arex Industries ROA % Historical Data

* Premium members only.

The historical data trend for Arex Industries's ROA % 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.

Arex Industries ROA % Chart

Arex Industries Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.11 1.26 4.95 5.44 3.24

Arex Industries Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
ROA % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.12 8.74 2.27 -0.23 78.35

Arex Industries ROA % Competitor Comparison

For the Textile Manufacturing subindustry, Arex Industries's ROA %, along with its competitors' market caps and ROA % 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.


Arex Industries ROA % vs Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Arex Industries's ROA % distribution charts can be found below:

* The bar in red indicates where Arex Industries's ROA % falls into.


BOM:526851
56GF Score
Arex Industries Ltd BOM:526851
ROA % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Arex Industries ROA % Calculation

Arex Industries's annualized ROA % for the fiscal year that ended in Mar. 2026 is calculated as:

ROA %=Net Income (A: Mar. 2026 )/( (Total Assets (A: Mar. 2025 )+Total Assets (A: Mar. 2026 ))/ count )
=14.815/( (466.226+449.672)/ 2 )
=14.815/457.949
=3.24 %

Arex Industries's annualized ROA % for the quarter that ended in Jun. 2026 is calculated as:

ROA %=Net Income (Q: Jun. 2026 )/( (Total Assets (Q: Mar. 2026 )+Total Assets (Q: Jun. 2026 ))/ count )
=352.312/( (449.672+0)/ 1 )
=352.312/449.672
=78.35 %

* 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 ROA %, the net income of the last fiscal year and the average total assets 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. ROA % is displayed in the 30-year financial page.

Frequently Asked Questions Learn more about ROA % →
What does a ROA % of 78.35% mean?
Arex Industries (BOM:526851) has a ROA % of 78.35% as of Jun. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Arex Industries and its competitors. This is 1657% above median its historical median of 4.46. According to the industry distribution chart, Arex Industries ranks #20 out of 1064 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 1.9%.
Is Arex Industries' ROA % too high?
Arex Industries' current ROA % of 78.35% is 1657% above median its 10-year median of 4.46. The Manufacturing - Apparel & Accessories industry median ROA % is 2.24. Arex Industries' value of 78.35% is 3397.8% above this industry median. Based on the distribution chart, Arex Industries ranks #20 out of 1064 companies in the Manufacturing - Apparel & Accessories industry, which is in the top quartile — a strong position relative to peers. Overall, Arex Industries has a GF Score™ of 56/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Arex Industries' ROA % compare to competitors?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Arex Industries ranks #20 out of 1064 companies for ROA %. This places Arex Industries in the top 2% of its industry — outperforming the majority of peers. The industry median ROA % is 2.24. Arex Industries' value of 78.35% is 3397.8% above this benchmark. While the company's 10-year median is 4.46 vs. the industry median of 2.24, Arex Industries 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 ROA % for a Manufacturing - Apparel & Accessories company?
The median ROA % among Manufacturing - Apparel & Accessories companies is 2.24, based on 1,064 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Arex Industries's current ROA % of 78.35% is 3397.8% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Arex Industries and its competitors. For the Manufacturing - Apparel & Accessories industry, the median ROA % is 2.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arex Industries's current ROA % is 78.35%, which is 1657% above median its own 10-year median of 4.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arex Industries stock overvalued right now?
Based on GuruFocus' analysis, Arex Industries (BOM:526851) is currently considered Fairly Valued. The stock's GF Value™ is ₹123.25, compared to a current price of ₹131.60 — trading 6.8% above its estimated fair value. The current ROA % is 78.35%, which is 1657% above median its 10-year median of 4.46 and 3397.8% above the Manufacturing - Apparel & Accessories industry median of 2.24. Arex Industries' overall GF Score™ is 56/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Arex Industries (BOM:526851), the current ROA % is 78.35% 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 Arex Industries (BOM:526851) Overvalued in 2026?

Based on GuruFocus' analysis, Arex Industries stock appears to be overvalued. The current stock price of ₹131.60 is trading 6.8% above its estimated GF Value™ of ₹123.25. GuruFocus considers Arex Industries to be Fairly Valued.

Key valuation signals for BOM:526851:

  • ROA %: 78.35% (1657% above median its 10-year median of 4.46)
  • GF Value™: ₹123.25 vs. price of ₹131.60 (6.8% above fair value)
  • GF Score™: 56/100 with 4 warning signs
  • Industry Position: 3397.8% above the Manufacturing - Apparel & Accessories median (#20 of 1064)

No single metric tells the full story. See the BOM:526851 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Arex Industries Business Description

Address 612, G.I.D.C Industrial Estate, Chhatral, Taluka Kalol, Gandhinagar, GJ, IND, 382729
Arex Industries Ltd is an India-based company that is engaged in the manufacturing of textile materials. The firm engages in the manufacturing of woven and printed labels. Its product offerings include end fold, centerfold, miter fold, Manhattan fold, starched, laser cut, specially coated, self-adhesive, thermo adhesive, die cut, filled in, and comfort soft labels. The operating segment of the company is the Manufacturing and Sale of Labels.
56GF Score

Get the complete analysis for BOM:526851

ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹131.60
Price
₹123.25
GF Value