Divi's LaboratoriesNSE:DIVISLAB +1.49%94 Return-on-Tangible-Asset is 15.00% as of Mar. 2026, which is 2% below its 10-year median of 15.26. GuruFocus rates NSE:DIVISLAB with a GF Score™ of 94/100 and a GF Value™ of ₹6,764.19 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,005 Drug Manufacturers companies, Divi's Laboratories ranks better than 87.06% 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. Divi's Laboratories's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹30,040 Mil. Divi's Laboratories's average total tangible assets for the quarter that ended in Mar. 2026 was ₹200,270 Mil. Therefore, Divi's Laboratories's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 15.00%.
The historical rank and industry rank for Divi's Laboratories's Return-on-Tangible-Asset or its related term are showing as below:
NSE:DIVISLAB'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 10.7 Med: 15.26 Max: 24.53
Current: 13.98
During the past 13 years, Divi's Laboratories's highest Return-on-Tangible-Asset was 24.53%. The lowest was 10.70%. And the median was 15.26%.
NSE:DIVISLAB's Return-on-Tangible-Asset is ranked better than 87.06% of 1005
companies
in the Drug Manufacturers industry
Industry Median: 3.16
vs NSE:DIVISLAB: 13.98
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.
Divi's Laboratories Return-on-Tangible-Asset Related Terms
Divi's Laboratories Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Divi's Laboratories'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:DIVISLAB vs ZTS, UTHR: Return-on-Tangible-Asset Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Divi's Laboratories'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.
Divi's Laboratories Return-on-Tangible-Asset vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Divi's Laboratories's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Divi's Laboratories'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 (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 15.00% mean?
Divi's Laboratories (NSE:DIVISLAB) has a Return-on-Tangible-Asset of 15.00% 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 Divi's Laboratories and its competitors. This is near median its historical median of 15.26. Over the past decade, Divi's Laboratories' Return-on-Tangible-Asset has ranged from 10.70 to 24.53. According to the industry distribution chart, Divi's Laboratories ranks #130 out of 1005 companies in the Drug Manufacturers industry, placing it in the top 12.9%.
Is Divi's Laboratories' Return-on-Tangible-Asset too high?
Divi's Laboratories' current Return-on-Tangible-Asset of 15.00% is near median its 10-year median of 15.26. Over the past 10 years, this metric has ranged from a low of 10.70 to a high of 24.53. The Drug Manufacturers industry median Return-on-Tangible-Asset is 3.16. Divi's Laboratories' value of 15.00% is 374.7% above this industry median. Based on the distribution chart, Divi's Laboratories ranks #130 out of 1005 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Divi's Laboratories has a GF Score™ of 94/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Divi's Laboratories' Return-on-Tangible-Asset compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Divi's Laboratories ranks #130 out of 1005 companies for Return-on-Tangible-Asset. This places Divi's Laboratories in the top 13% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.16. Divi's Laboratories' value of 15.00% is 374.7% above this benchmark. Historically, Divi's Laboratories' own Return-on-Tangible-Asset has ranged from 10.70 to 24.53 over the past decade. While the company's 10-year median is 15.26 vs. the industry median of 3.16, Divi's Laboratories 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 1,005 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. Divi's Laboratories's current Return-on-Tangible-Asset of 15.00% is 374.7% 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 Divi's Laboratories 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. Divi's Laboratories's current Return-on-Tangible-Asset is 15.00%, which is near median its own 10-year median of 15.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Divi's Laboratories stock overvalued right now?
Based on GuruFocus' analysis, Divi's Laboratories (NSE:DIVISLAB) is currently considered Fairly Valued. The stock's GF Value™ is ₹6,764.19, compared to a current price of ₹6,857.50 — trading 1.4% above its estimated fair value. The current Return-on-Tangible-Asset is 15.00%, which is near median its 10-year median of 15.26 and 374.7% above the Drug Manufacturers industry median of 3.16. Divi's Laboratories' overall GF Score™ is 94/100 with 5 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 Divi's Laboratories (NSE:DIVISLAB), the current Return-on-Tangible-Asset is 15.00% 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 Divi's Laboratories (NSE:DIVISLAB) Overvalued in 2026?
Based on GuruFocus' analysis, Divi's Laboratories stock appears to be overvalued.
The current stock price of ₹6,857.50 is trading 1.4% above its estimated GF Value™ of ₹6,764.19.
GuruFocus considers Divi's Laboratories to be Fairly Valued.
Key valuation signals for NSE:DIVISLAB:
Return-on-Tangible-Asset: 15.00% (near median its 10-year median of 15.26)
GF Value™: ₹6,764.19 vs. price of ₹6,857.50 (1.4% above fair value)
Industry Position: 374.7% above the Drug Manufacturers median (#130 of 1005)
No single metric tells the full story. See the NSE:DIVISLAB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Divi's Laboratories Ltd is a specialty and generic drug manufacturing company. It is engaged in the manufacture of Active Pharmaceutical ingredients (API), Intermediates, and Nutraceutical ingredients, with a predominance in exports. It also, through its custom synthesis, supports pharma companies for their patented products business from gram-scale requirements for clinical trials to launch, as well as late-life cycle management. Geographically, the company derives maximum revenue from Europe, and the rest from America, India, Asia (excluding India), and the Rest of the world.
94GF Score
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