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Aarti DrugsNSE:AARTIDRUGS -1.79%72 Return-on-Tangible-Asset is 7.17% as of Jun. 2026, which is 0% below its 10-year median of 7.19. GuruFocus rates NSE:AARTIDRUGS with a GF Score™ of 72/100 and a GF Value™ of ₹506.74 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,007 Drug Manufacturers companies, Aarti Drugs ranks better than 69.22% 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. Aarti Drugs's annualizedNet Income for the quarter that ended in Jun. 2026 was ₹2,007 Mil. Aarti Drugs's average total tangible assets for the quarter that ended in Jun. 2026 was ₹27,988 Mil. Therefore, Aarti Drugs's annualized Return-on-Tangible-Asset for the quarter that ended in Jun. 2026 was 7.17%.
The historical rank and industry rank for Aarti Drugs's Return-on-Tangible-Asset or its related term are showing as below:
NSE:AARTIDRUGS'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 6.33 Med: 7.19 Max: 16.79
Current: 7.25
During the past 13 years, Aarti Drugs's highest Return-on-Tangible-Asset was 16.79%. The lowest was 6.33%. And the median was 7.19%.
NSE:AARTIDRUGS's Return-on-Tangible-Asset is ranked better than 69.22% of 1007
companies
in the Drug Manufacturers industry
Industry Median: 2.98
vs NSE:AARTIDRUGS: 7.25
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.
Aarti Drugs Return-on-Tangible-Asset Related Terms
Aarti Drugs Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Aarti Drugs'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.
NSE:AARTIDRUGS vs ZTS: Return-on-Tangible-Asset Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Aarti Drugs'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.
Aarti Drugs Return-on-Tangible-Asset vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Aarti Drugs's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Aarti Drugs'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 7.17% mean?
Aarti Drugs (NSE:AARTIDRUGS) has a Return-on-Tangible-Asset of 7.17% 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 Aarti Drugs and its competitors. This is near median its historical median of 7.19. Over the past decade, Aarti Drugs' Return-on-Tangible-Asset has ranged from 6.33 to 16.79. According to the industry distribution chart, Aarti Drugs ranks #310 out of 1007 companies in the Drug Manufacturers industry, placing it in the top 30.8%.
Is Aarti Drugs' Return-on-Tangible-Asset too high?
Aarti Drugs' current Return-on-Tangible-Asset of 7.17% is near median its 10-year median of 7.19. Over the past 10 years, this metric has ranged from a low of 6.33 to a high of 16.79. The Drug Manufacturers industry median Return-on-Tangible-Asset is 2.98. Aarti Drugs' value of 7.17% is 140.6% above this industry median. Based on the distribution chart, Aarti Drugs ranks #310 out of 1007 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Aarti Drugs has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Aarti Drugs' Return-on-Tangible-Asset compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Aarti Drugs ranks #310 out of 1007 companies for Return-on-Tangible-Asset. This puts Aarti Drugs in the upper half of its industry. The industry median Return-on-Tangible-Asset is 2.98. Aarti Drugs' value of 7.17% is 140.6% above this benchmark. Historically, Aarti Drugs' own Return-on-Tangible-Asset has ranged from 6.33 to 16.79 over the past decade. While the company's 10-year median is 7.19 vs. the industry median of 2.98, Aarti Drugs 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 2.98, 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. Aarti Drugs's current Return-on-Tangible-Asset of 7.17% is 140.6% 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 Aarti Drugs and its competitors. For the Drug Manufacturers industry, the median Return-on-Tangible-Asset is 2.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aarti Drugs's current Return-on-Tangible-Asset is 7.17%, which is near median its own 10-year median of 7.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aarti Drugs stock overvalued right now?
Based on GuruFocus' analysis, Aarti Drugs (NSE:AARTIDRUGS) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹506.74, compared to a current price of ₹431.50 — trading 14.8% below its estimated fair value. The current Return-on-Tangible-Asset is 7.17%, which is near median its 10-year median of 7.19 and 140.6% above the Drug Manufacturers industry median of 2.98. Aarti Drugs' overall GF Score™ is 72/100 with 3 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 Aarti Drugs (NSE:AARTIDRUGS), the current Return-on-Tangible-Asset is 7.17% 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 Aarti Drugs (NSE:AARTIDRUGS) Overvalued in 2026?
Based on GuruFocus' analysis, Aarti Drugs stock appears to be undervalued.
The current stock price of ₹431.50 is trading 14.8% below its estimated GF Value™ of ₹506.74.
GuruFocus considers Aarti Drugs to be Modestly Undervalued.
Key valuation signals for NSE:AARTIDRUGS:
Return-on-Tangible-Asset: 7.17% (near median its 10-year median of 7.19)
GF Value™: ₹506.74 vs. price of ₹431.50 (14.8% below fair value)
Industry Position: 140.6% above the Drug Manufacturers median (#310 of 1007)
No single metric tells the full story. See the NSE:AARTIDRUGS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aarti Drugs Ltd is a pharmaceutical company. It offers active pharmaceutical ingredients (APIs), pharma intermediaries, specialty chemicals, and formulations in a range of therapeutic categories, such as anti-inflammatory, cardioprotectant, antibiotic, antidiabetic, and vitamins among others. The product offerings of the company comprise Aceclofenac, Celecoxib, Moxifloxacin, and others. The firm caters to both domestic and international markets and derives a majority of its revenue from its business in India.
72GF Score
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