Hoechst Pakistan (KAR:HPL) Return-on-Tangible-Asset: 20.24% (As of Mar. 2026) — 117% Above Median

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KAR:HPL Hoechst Pakistan Ltd KAR:HPL
88 GF Score
Price ₨4,029.43
GF Value ₨3,289.53
Valuation Modestly Overvalued
! 1 Warning Sign
View Full Analysis

What is Hoechst Pakistan Return-on-Tangible-Asset?

Hoechst Pakistan KAR:HPL +0.29% 88 Return-on-Tangible-Asset is 20.24% as of Mar. 2026, which is 117% above its 10-year median of 9.31. GuruFocus rates KAR:HPL with a GF Score™ of 88/100 and a GF Value™ of ₨3,289.53 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 1,008 Drug Manufacturers companies, Hoechst Pakistan ranks better than 95.73% 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. Hoechst Pakistan's annualized Net Income for the quarter that ended in Mar. 2026 was ₨2,844 Mil. Hoechst Pakistan's average total tangible assets for the quarter that ended in Mar. 2026 was ₨14,046 Mil. Therefore, Hoechst Pakistan's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 20.24%.

The historical rank and industry rank for Hoechst Pakistan's Return-on-Tangible-Asset or its related term are showing as below:

KAR:HPL' s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 1.54   Med: 9.31   Max: 22.64
Current: 22.64

During the past 13 years, Hoechst Pakistan's highest Return-on-Tangible-Asset was 22.64%. The lowest was 1.54%. And the median was 9.31%.

KAR:HPL's Return-on-Tangible-Asset is ranked better than
95.73% of 1008 companies
in the Drug Manufacturers industry
Industry Median: 3.155 vs KAR:HPL: 22.64

Hoechst Pakistan  (KAR:HPL) Return-on-Tangible-Asset Explanation

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 company’s 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 company’s 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.


Hoechst Pakistan Return-on-Tangible-Asset Related Terms


Hoechst Pakistan Return-on-Tangible-Asset Historical Data

* Premium members only.

The historical data trend for Hoechst Pakistan'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.

Hoechst Pakistan Return-on-Tangible-Asset Chart

Hoechst Pakistan Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Return-on-Tangible-Asset
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.11 1.54 3.25 15.87 21.28

Hoechst Pakistan Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Return-on-Tangible-Asset Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 17.11 24.52 25.83 19.90 20.24

KAR:HPL vs LLY, JNJ, ABBV: Return-on-Tangible-Asset Comparison

For the Drug Manufacturers - General subindustry, Hoechst Pakistan'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.


Hoechst Pakistan Return-on-Tangible-Asset vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Hoechst Pakistan's Return-on-Tangible-Asset distribution charts can be found below:

* The bar in red indicates where Hoechst Pakistan's Return-on-Tangible-Asset falls into.


KAR:HPL
88GF Score
Hoechst Pakistan Ltd KAR:HPL
Return-on-Tangible-Asset is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Hoechst Pakistan Return-on-Tangible-Asset Calculation

Hoechst Pakistan's annualized Return-on-Tangible-Asset for the fiscal year that ended in Dec. 2025 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(A: Dec. 2025 )  (A: Dec. 2024 )(A: Dec. 2025 )
=2900.083/( (13552.354+13708.576)/ 2 )
=2900.083/13630.465
=21.28 %

Hoechst Pakistan's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=2843.596/( (13708.576+14384.191)/ 2 )
=2843.596/14046.3835
=20.24 %

* 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 (Mar. 2026) net income data.

What does a Return-on-Tangible-Asset of 20.24% mean?
Hoechst Pakistan (KAR:HPL) has a Return-on-Tangible-Asset of 20.24% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Hoechst Pakistan and its competitors. This is 117% above median its historical median of 9.31. Over the past decade, Hoechst Pakistan's Return-on-Tangible-Asset has ranged from 1.54 to 22.64. According to the industry distribution chart, Hoechst Pakistan ranks #43 out of 1008 companies in the Drug Manufacturers industry, placing it in the top 4.3%.
Is Hoechst Pakistan's Return-on-Tangible-Asset too high?
Hoechst Pakistan's current Return-on-Tangible-Asset of 20.24% is 117% above median its 10-year median of 9.31. Over the past 10 years, this metric has ranged from a low of 1.54 to a high of 22.64. The Drug Manufacturers industry median Return-on-Tangible-Asset is 3.16. Hoechst Pakistan's value of 20.24% is 541.5% above this industry median. Based on the distribution chart, Hoechst Pakistan ranks #43 out of 1008 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Hoechst Pakistan has a GF Score™ of 88/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hoechst Pakistan's Return-on-Tangible-Asset compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Hoechst Pakistan ranks #43 out of 1008 companies for Return-on-Tangible-Asset. This places Hoechst Pakistan in the top 4% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.16. Hoechst Pakistan's value of 20.24% is 541.5% above this benchmark. Historically, Hoechst Pakistan's own Return-on-Tangible-Asset has ranged from 1.54 to 22.64 over the past decade. While the company's 10-year median is 9.31 vs. the industry median of 3.16, Hoechst Pakistan 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 3.16, based on 1,008 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. Hoechst Pakistan's current Return-on-Tangible-Asset of 20.24% is 541.5% 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 Hoechst Pakistan and its competitors. For the Drug Manufacturers industry, the median Return-on-Tangible-Asset is 3.16 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hoechst Pakistan's current Return-on-Tangible-Asset is 20.24%, which is 117% above median its own 10-year median of 9.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hoechst Pakistan stock overvalued right now?
Based on GuruFocus' analysis, Hoechst Pakistan (KAR:HPL) is currently considered Modestly Overvalued. The stock's GF Value™ is ₨3,289.53, compared to a current price of ₨4,029.43 — trading 22.5% above its estimated fair value. The current Return-on-Tangible-Asset is 20.24%, which is 117% above median its 10-year median of 9.31 and 541.5% above the Drug Manufacturers industry median of 3.16. Hoechst Pakistan's overall GF Score™ is 88/100 with 1 warning sign 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 Hoechst Pakistan (KAR:HPL), the current Return-on-Tangible-Asset is 20.24% 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 Hoechst Pakistan (KAR:HPL) Overvalued in 2026?

Based on GuruFocus' analysis, Hoechst Pakistan stock appears to be overvalued. The current stock price of ₨4,029.43 is trading 22.5% above its estimated GF Value™ of ₨3,289.53. GuruFocus considers Hoechst Pakistan to be Modestly Overvalued.

Key valuation signals for KAR:HPL:

  • Return-on-Tangible-Asset: 20.24% (117% above median its 10-year median of 9.31)
  • GF Value™: ₨3,289.53 vs. price of ₨4,029.43 (22.5% above fair value)
  • GF Score™: 88/100 with 1 warning sign
  • Industry Position: 541.5% above the Drug Manufacturers median (#43 of 1008)

No single metric tells the full story. See the KAR:HPL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Hoechst Pakistan Business Description

Address Plot 23, Sector 22, Korangi Industrial Area, Karachi, PAK, 74900
Hoechst Pakistan Ltd is a healthcare company of Pakistan, focused on patient needs and engaged in the manufacturing, promotion, and sale of pharmaceutical and vaccines. The company engages in the manufacturing, selling and trading of pharmaceutical and related products.
88GF Score

Get the complete analysis for KAR:HPL

Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₨4,029.43
Price
₨3,289.53
GF Value