Modern Threads (India)NSE:MODTHREAD +1.37%38 ROA % is 5.76% as of Mar. 2026, which is 27% below its 10-year median of 7.85. GuruFocus rates NSE:MODTHREAD with a GF Score™ of 38/100. The stock has 3 warning signs investors should review. Among 1,069 Manufacturing - Apparel & Accessories companies, Modern Threads (India) ranks better than 73.53% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Modern Threads (India)'s annualizedNet Income for the quarter that ended in Mar. 2026 was ₹147 Mil.
Modern Threads (India)'s average Total Assets over the quarter that ended in Mar. 2026 was ₹2,546 Mil. Therefore, Modern Threads (India)'s annualized ROA % for the quarter that ended in Mar. 2026 was 5.76%.
The historical rank and industry rank for Modern Threads (India)'s ROA % or its related term are showing as below:
NSE:MODTHREAD'
s ROA % Range Over the Past 10 Years
Min: 1.38 Med: 7.85 Max: 135.79
Current: 5.11
During the past 11 years, Modern Threads (India)'s highest ROA % was 135.79%. The lowest was 1.38%. And the median was 7.85%.
NSE:MODTHREAD's ROA % is ranked better than 73.53% of 1069
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 1.95
vs NSE:MODTHREAD: 5.11
Modern Threads (India) (NSE:MODTHREAD) 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 banks 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:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 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.
* 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.
Modern Threads (India) ROA % Competitor Comparison
For the Textile Manufacturing subindustry, Modern Threads (India)'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.
Modern Threads (India) ROA % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Modern Threads (India)'s ROA % distribution charts can be found below:
* The bar in red indicates where Modern Threads (India)'s ROA % 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 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 (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Modern Threads (India) (NSE:MODTHREAD) has a ROA % of 5.76% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Modern Threads (India) and its competitors. This is 27% below median its historical median of 7.85. Over the past decade, Modern Threads (India)'s ROA % has ranged from 1.38 to 135.79. According to the industry distribution chart, Modern Threads (India) ranks #283 out of 1069 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 26.5%.
Is Modern Threads (India)'s ROA % too high?
Modern Threads (India)'s current ROA % of 5.76% is 27% below median its 10-year median of 7.85. Over the past 10 years, this metric has ranged from a low of 1.38 to a high of 135.79. The Manufacturing - Apparel & Accessories industry median ROA % is 1.95. Modern Threads (India)'s value of 5.76% is 195.4% above this industry median. Based on the distribution chart, Modern Threads (India) ranks #283 out of 1069 companies in the Manufacturing - Apparel & Accessories industry, which is above the industry midpoint. Overall, Modern Threads (India) has a GF Score™ of 38/100, reflecting its overall financial health beyond just this single metric.
How does Modern Threads (India)'s ROA % compare to competitors?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Modern Threads (India) ranks #283 out of 1069 companies for ROA %. This puts Modern Threads (India) in the upper half of its industry. The industry median ROA % is 1.95. Modern Threads (India)'s value of 5.76% is 195.4% above this benchmark. Historically, Modern Threads (India)'s own ROA % has ranged from 1.38 to 135.79 over the past decade. While the company's 10-year median is 7.85 vs. the industry median of 1.95, Modern Threads (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 ROA % for a Manufacturing - Apparel & Accessories company?
The median ROA % among Manufacturing - Apparel & Accessories companies is 1.95, based on 1,069 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. Modern Threads (India)'s current ROA % of 5.76% is 195.4% 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 Modern Threads (India) and its competitors. For the Manufacturing - Apparel & Accessories industry, the median ROA % is 1.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Modern Threads (India)'s current ROA % is 5.76%, which is 27% below median its own 10-year median of 7.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Modern Threads (India) stock overvalued right now?
Modern Threads (India) (NSE:MODTHREAD) has a current ROA % of 5.76%. The current ROA % is 5.76%, which is 27% below median its 10-year median of 7.85 and 195.4% above the Manufacturing - Apparel & Accessories industry median of 1.95. Modern Threads (India)'s overall GF Score™ is 38/100 with 3 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 Modern Threads (India) (NSE:MODTHREAD), the current ROA % is 5.76% 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.
Modern Threads (India) Ltd is engaged in the textile industry, manufacturing and selling a diverse products, including worsted yarn, wool tops, wool grease, polyester viscose fiber-dyed yarn, polyester yarn, and lanolin. The company mainly produces worsted yarn, wool tops, and synthetic yarn. Its products are exported to over 25 countries across Europe, Latin America, the Far East, the Middle East, and Africa. Its manufacturing plants are located in Raila and Bhilwara. The company has generated the majority of its revenue from India.
38GF Score
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