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Laurus LabsBOM:540222 +0.80%67 Return-on-Tangible-Asset is 14.35% as of Jun. 2026, which is 90% above its 10-year median of 7.55. GuruFocus rates BOM:540222 with a GF Score™ of 67/100 and a GF Value™ of ₹846.59 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,007 Drug Manufacturers companies, Laurus Labs ranks better than 82.42% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Laurus Labs's annualizedNet Income for the quarter that ended in Jun. 2026 was ₹14,704 Mil. Laurus Labs's average total tangible assets for the quarter that ended in Jun. 2026 was ₹102,465 Mil. Therefore, Laurus Labs's annualized Return-on-Tangible-Asset for the quarter that ended in Jun. 2026 was 14.35%.
The historical rank and industry rank for Laurus Labs's Return-on-Tangible-Asset or its related term are showing as below:
BOM:540222'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 2.07 Med: 7.55 Max: 21.32
Current: 11.52
During the past 13 years, Laurus Labs's highest Return-on-Tangible-Asset was 21.32%. The lowest was 2.07%. And the median was 7.55%.
BOM:540222's Return-on-Tangible-Asset is ranked better than 82.42% of 1007
companies
in the Drug Manufacturers industry
Industry Median: 2.84
vs BOM:540222: 11.52
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset 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 Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Laurus Labs Return-on-Tangible-Asset Related Terms
Laurus Labs Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Laurus Labs's Return-on-Tangible-Asset 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.
BOM:540222 vs ZTS: Return-on-Tangible-Asset Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Laurus Labs's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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.
Laurus Labs Return-on-Tangible-Asset vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Laurus Labs's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Laurus Labs's Return-on-Tangible-Asset 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 Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible 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.
What does a Return-on-Tangible-Asset of 14.35% mean?
Laurus Labs (BOM:540222) has a Return-on-Tangible-Asset of 14.35% as of Jun. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Laurus Labs and its competitors. This is 90% above median its historical median of 7.55. Over the past decade, Laurus Labs' Return-on-Tangible-Asset has ranged from 2.07 to 21.32. According to the industry distribution chart, Laurus Labs ranks #177 out of 1007 companies in the Drug Manufacturers industry, placing it in the top 17.6%.
Is Laurus Labs' Return-on-Tangible-Asset too high?
Laurus Labs' current Return-on-Tangible-Asset of 14.35% is 90% above median its 10-year median of 7.55. Over the past 10 years, this metric has ranged from a low of 2.07 to a high of 21.32. The Drug Manufacturers industry median Return-on-Tangible-Asset is 2.84. Laurus Labs' value of 14.35% is 405.3% above this industry median. Based on the distribution chart, Laurus Labs ranks #177 out of 1007 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Laurus Labs has a GF Score™ of 67/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Laurus Labs' Return-on-Tangible-Asset compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Laurus Labs ranks #177 out of 1007 companies for Return-on-Tangible-Asset. This places Laurus Labs in the top 18% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.84. Laurus Labs' value of 14.35% is 405.3% above this benchmark. Historically, Laurus Labs' own Return-on-Tangible-Asset has ranged from 2.07 to 21.32 over the past decade. While the company's 10-year median is 7.55 vs. the industry median of 2.84, Laurus Labs 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 Return-on-Tangible-Asset for a Drug Manufacturers company?
The median Return-on-Tangible-Asset among Drug Manufacturers companies is 2.84, based on 1,007 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Laurus Labs's current Return-on-Tangible-Asset of 14.35% is 405.3% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Laurus Labs and its competitors. For the Drug Manufacturers industry, the median Return-on-Tangible-Asset is 2.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Laurus Labs's current Return-on-Tangible-Asset is 14.35%, which is 90% above median its own 10-year median of 7.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Laurus Labs stock overvalued right now?
Based on GuruFocus' analysis, Laurus Labs (BOM:540222) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹846.59, compared to a current price of ₹1,935.30 — trading 128.6% above its estimated fair value. The current Return-on-Tangible-Asset is 14.35%, which is 90% above median its 10-year median of 7.55 and 405.3% above the Drug Manufacturers industry median of 2.84. Laurus Labs' overall GF Score™ is 67/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Laurus Labs (BOM:540222), the current Return-on-Tangible-Asset is 14.35% 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 Laurus Labs (BOM:540222) Overvalued in 2026?
Based on GuruFocus' analysis, Laurus Labs stock appears to be overvalued.
The current stock price of ₹1,935.30 is trading 128.6% above its estimated GF Value™ of ₹846.59.
GuruFocus considers Laurus Labs to be Significantly Overvalued.
Key valuation signals for BOM:540222:
Return-on-Tangible-Asset: 14.35% (90% above median its 10-year median of 7.55)
GF Value™: ₹846.59 vs. price of ₹1,935.30 (128.6% above fair value)
Industry Position: 405.3% above the Drug Manufacturers median (#177 of 1007)
No single metric tells the full story. See the BOM:540222 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Laurus Labs Ltd is a pharmaceutical company based in India. It provides active pharmaceutical ingredients (API) including intermediates, Generic Finished dosage forms (FDF), and Contract Research services. The entity develops APIs and intermediates for select, high-growth antiretrovirals, Hepatitis C and Oncology. It also manufactures APIs in other therapeutic areas, such as anti-asthma, ophthalmology, anti-diabetics, cardiovascular, and proton pump inhibitors, among others. The company has its business presence in India and Outside India of which it derives a majority of revenue from Outside India. The company generates revenue from the sale of API, Intermediates and Formulations, Contract research services, and others.
67GF Score
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