Zenith DrugsNSE:ZENITHDRUG -0.11%14 Net Margin % is 2.99% as of Sep. 2025, which is 30% below its 10-year median of 4.26. GuruFocus rates NSE:ZENITHDRUG with a GF Score™ of 14/100. The stock has 6 warning signs investors should review. Among 954 Drug Manufacturers companies, Zenith Drugs ranks worse than 59.22% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Zenith Drugs's Net Income for the
six
months ended in Sep. 2025 was ₹23 Mil. Zenith Drugs's Revenue for the
six
months ended in Sep. 2025 was ₹782 Mil. Therefore, Zenith Drugs's net margin for the quarter that ended in Sep. 2025 was 2.99%.
The historical rank and industry rank for Zenith Drugs's Net Margin % or its related term are showing as below:
NSE:ZENITHDRUG'
s Net Margin % Range Over the Past 10 Years
Min: 2.63 Med: 4.26 Max: 7.25
Current: 2.63
NSE:ZENITHDRUG's Net Margin % is ranked worse than 59.22% of 954
companies
in the Drug Manufacturers industry
Industry Median: 5.695
vs NSE:ZENITHDRUG: 2.63
Zenith Drugs (NSE:ZENITHDRUG) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Zenith Drugs Net Margin % Related Terms
Zenith Drugs Net Margin % Historical Data
* Premium members only.
The historical data trend for Zenith Drugs's Net Margin % 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.
NSE:ZENITHDRUG vs ZTS, UTHR: Net Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Zenith Drugs's Net Margin %, along with its competitors' market caps and Net Margin % 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.
Zenith Drugs Net Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Zenith Drugs's Net Margin % distribution charts can be found below:
* The bar in red indicates where Zenith Drugs's Net Margin % 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.
Zenith Drugs (NSE:ZENITHDRUG) has a Net Margin % of 2.99% as of Sep. 2025. Net margin is the ratio of total net income to net sales. View historical data on Zenith Drugs and its competitors. This is 30% below median its historical median of 4.26. Over the past decade, Zenith Drugs' Net Margin % has ranged from 2.63 to 7.25. According to the industry distribution chart, Zenith Drugs ranks #565 out of 954 companies in the Drug Manufacturers industry, placing it in the top 59.2%.
Is Zenith Drugs' Net Margin % too high?
Zenith Drugs' current Net Margin % of 2.99% is 30% below median its 10-year median of 4.26. Over the past 10 years, this metric has ranged from a low of 2.63 to a high of 7.25. The Drug Manufacturers industry median Net Margin % is 5.70. Zenith Drugs' value of 2.99% is 47.5% below this industry median. Based on the distribution chart, Zenith Drugs ranks #565 out of 954 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Zenith Drugs has a GF Score™ of 14/100, reflecting its overall financial health beyond just this single metric.
How does Zenith Drugs' Net Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Zenith Drugs ranks #565 out of 954 companies for Net Margin %. This places Zenith Drugs in the lower half of its industry. The industry median Net Margin % is 5.70. Zenith Drugs' value of 2.99% is 47.5% below this benchmark. Historically, Zenith Drugs' own Net Margin % has ranged from 2.63 to 7.25 over the past decade. While the company's 10-year median is 4.26 vs. the industry median of 5.70, Zenith Drugs has consistently been below 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 Net Margin % for a Drug Manufacturers company?
The median Net Margin % among Drug Manufacturers companies is 5.70, based on 954 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Zenith Drugs's current Net Margin % of 2.99% is 47.5% below 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Zenith Drugs and its competitors. For the Drug Manufacturers industry, the median Net Margin % is 5.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zenith Drugs's current Net Margin % is 2.99%, which is 30% below median its own 10-year median of 4.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zenith Drugs stock overvalued right now?
Zenith Drugs (NSE:ZENITHDRUG) has a current Net Margin % of 2.99%. The current Net Margin % is 2.99%, which is 30% below median its 10-year median of 4.26 and 47.5% below the Drug Manufacturers industry median of 5.70. Zenith Drugs' overall GF Score™ is 14/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Zenith Drugs (NSE:ZENITHDRUG), the current Net Margin % is 2.99% as of Sep. 2025. 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.
Zenith Drugs Ltd is a pharmaceutical manufacturing and trading company. It offers a wide range of formulations in various forms such as ORS Powder, Liquid Orals, Ointments, Liquid Externals, Creams, Gels, Capsules, and Tablets. It is also into Generic Medicines.
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