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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Rainbow Denim's annualized net income for the quarter that ended in Mar. 2026 was ₹195 Mil. Rainbow Denim's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was ₹61 Mil. Therefore, Rainbow Denim's annualized ROE % for the quarter that ended in Mar. 2026 was 318.84%.
The historical rank and industry rank for Rainbow Denim's ROE % or its related term are showing as below:
BOM:532441'
s ROE % Range Over the Past 10 Years
Min: 9.97 Med: 45.54 Max: 107.15
Current: 75.5
During the past 13 years, Rainbow Denim's highest ROE % was 107.15%. The lowest was 9.97%. And the median was 45.54%.
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
Rainbow Denim ROE % Related Terms
Rainbow Denim ROE % Historical Data
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The historical data trend for Rainbow Denim's ROE % 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, Rainbow Denim's ROE %, along with its competitors' market caps and ROE % 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.
Rainbow Denim ROE % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Rainbow Denim's ROE % distribution charts can be found below:
* The bar in red indicates where Rainbow Denim's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
Rainbow Denim (BOM:532441) has a ROE % of 318.84% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Rainbow Denim and its competitors. This is 600% above median its historical median of 45.54. Over the past decade, Rainbow Denim's ROE % has ranged from 9.97 to 107.15.
Is Rainbow Denim's ROE % too high?
Rainbow Denim's current ROE % of 318.84% is 600% above median its 10-year median of 45.54. Over the past 10 years, this metric has ranged from a low of 9.97 to a high of 107.15. The Manufacturing - Apparel & Accessories industry median ROE % is 4.04. Rainbow Denim's value of 318.84% is 7792.1% above this industry median. Overall, Rainbow Denim has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does Rainbow Denim's ROE % compare to AIN?
Rainbow Denim's ROE % of 318.84% can be compared against companies in the Manufacturing - Apparel & Accessories industry. The industry median ROE % is 4.04. Rainbow Denim's value of 318.84% is 7792.1% above this benchmark. Historically, Rainbow Denim's own ROE % has ranged from 9.97 to 107.15 over the past decade. While the company's 10-year median is 45.54 vs. the industry median of 4.04, Rainbow Denim 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 ROE % for a Manufacturing - Apparel & Accessories company?
The median ROE % among Manufacturing - Apparel & Accessories companies is 4.04, based on 1,022 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rainbow Denim's current ROE % of 318.84% is 7792.1% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Rainbow Denim and its competitors. For the Manufacturing - Apparel & Accessories industry, the median ROE % is 4.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rainbow Denim's current ROE % is 318.84%, which is 600% above median its own 10-year median of 45.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rainbow Denim stock overvalued right now?
Rainbow Denim (BOM:532441) has a current ROE % of 318.84%. The current ROE % is 318.84%, which is 600% above median its 10-year median of 45.54 and 7792.1% above the Manufacturing - Apparel & Accessories industry median of 4.04. Rainbow Denim's overall GF Score™ is 4/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Rainbow Denim (BOM:532441), the current ROE % is 318.84% 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.
Rainbow Denim Ltd is an Indian firm operating in the textile industry. It is principally engaged in the single segment of manufacturing and distribution of denim fabric. Its product range consists of crosshatch denim, slubby denim, structured (dobby) denim, polyester filament weft denim, multi-count denim fabrics, doubled yarn warp denim, and silky denim and others.
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