PrecotNSE:PRECOT -3.52%57 ROA % is 5.04% as of Mar. 2026, which is 816% above its 10-year median of 0.55. GuruFocus rates NSE:PRECOT with a GF Score™ of 57/100 and a GF Value™ of ₹461.72 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,067 Manufacturing - Apparel & Accessories companies, Precot ranks better than 64.85% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Precot's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹470 Mil.
Precot's average Total Assets over the quarter that ended in Mar. 2026 was ₹9,316 Mil. Therefore, Precot's annualized ROA % for the quarter that ended in Mar. 2026 was 5.04%.
The historical rank and industry rank for Precot's ROA % or its related term are showing as below:
NSE:PRECOT'
s ROA % Range Over the Past 10 Years
Min: -2.87 Med: 0.55 Max: 12.47
Current: 3.83
During the past 13 years, Precot's highest ROA % was 12.47%. The lowest was -2.87%. And the median was 0.55%.
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.
Precot ROA % Related Terms
Precot ROA % Historical Data
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The historical data trend for Precot'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.
For the Textile Manufacturing subindustry, Precot'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.
Precot ROA % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Precot's ROA % distribution charts can be found below:
* The bar in red indicates where Precot'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.
Precot (NSE:PRECOT) has a ROA % of 5.04% 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 Precot and its competitors. This is 816% above median its historical median of 0.55. According to the industry distribution chart, Precot ranks #375 out of 1067 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 35.1%.
Is Precot's ROA % too high?
Precot's current ROA % of 5.04% is 816% above median its 10-year median of 0.55. The Manufacturing - Apparel & Accessories industry median ROA % is 1.88. Precot's value of 5.04% is 168.1% above this industry median. Based on the distribution chart, Precot ranks #375 out of 1067 companies in the Manufacturing - Apparel & Accessories industry, which is above the industry midpoint. Overall, Precot has a GF Score™ of 57/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Precot's ROA % compare to competitors?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Precot ranks #375 out of 1067 companies for ROA %. This puts Precot in the upper half of its industry. The industry median ROA % is 1.88. Precot's value of 5.04% is 168.1% above this benchmark. While the company's 10-year median is 0.55 vs. the industry median of 1.88, 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 ROA % for a Manufacturing - Apparel & Accessories company?
The median ROA % among Manufacturing - Apparel & Accessories companies is 1.88, based on 1,067 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. Precot's current ROA % of 5.04% is 168.1% 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 Precot and its competitors. For the Manufacturing - Apparel & Accessories industry, the median ROA % is 1.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Precot's current ROA % is 5.04%, which is 816% above median its own 10-year median of 0.55. 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 ₹461.72, compared to a current price of ₹710.30 — trading 53.8% above its estimated fair value. The current ROA % is 5.04%, which is 816% above median its 10-year median of 0.55 and 168.1% above the Manufacturing - Apparel & Accessories industry median of 1.88. Precot's overall GF Score™ is 57/100 with 7 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 Precot (NSE:PRECOT), the current ROA % is 5.04% 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 ₹710.30 is trading 53.8% above its estimated GF Value™ of ₹461.72.
GuruFocus considers Precot to be Significantly Overvalued.
Key valuation signals for NSE:PRECOT:
ROA %: 5.04% (816% above median its 10-year median of 0.55)
GF Value™: ₹461.72 vs. price of ₹710.30 (53.8% above fair value)
Industry Position: 168.1% above the Manufacturing - Apparel & Accessories median (#375 of 1067)
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.
57GF Score
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