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Natco PharmaNSE:NATCOPHARM +0.56%88 Return-on-Tangible-Asset is 7.64% as of Jun. 2026, which is 51% below its 10-year median of 15.45. GuruFocus rates NSE:NATCOPHARM with a GF Score™ of 88/100 and a GF Value™ of ₹825.40 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,006 Drug Manufacturers companies, Natco Pharma ranks better than 82.8% 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. Natco Pharma's annualizedNet Income for the quarter that ended in Jun. 2026 was ₹8,260 Mil. Natco Pharma's average total tangible assets for the quarter that ended in Jun. 2026 was ₹108,164 Mil. Therefore, Natco Pharma's annualized Return-on-Tangible-Asset for the quarter that ended in Jun. 2026 was 7.64%.
The historical rank and industry rank for Natco Pharma's Return-on-Tangible-Asset or its related term are showing as below:
NSE:NATCOPHARM'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 3.48 Med: 15.45 Max: 25.01
Current: 11.7
During the past 13 years, Natco Pharma's highest Return-on-Tangible-Asset was 25.01%. The lowest was 3.48%. And the median was 15.45%.
NSE:NATCOPHARM's Return-on-Tangible-Asset is ranked better than 82.8% of 1006
companies
in the Drug Manufacturers industry
Industry Median: 3.085
vs NSE:NATCOPHARM: 11.70
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.
Natco Pharma Return-on-Tangible-Asset Related Terms
Natco Pharma Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Natco Pharma'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:NATCOPHARM vs ZTS: Return-on-Tangible-Asset Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Natco Pharma'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.
Natco Pharma Return-on-Tangible-Asset vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Natco Pharma's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Natco Pharma'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 7.64% mean?
Natco Pharma (NSE:NATCOPHARM) has a Return-on-Tangible-Asset of 7.64% 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 Natco Pharma and its competitors. This is 51% below median its historical median of 15.45. Over the past decade, Natco Pharma's Return-on-Tangible-Asset has ranged from 3.48 to 25.01. According to the industry distribution chart, Natco Pharma ranks #173 out of 1006 companies in the Drug Manufacturers industry, placing it in the top 17.2%.
Is Natco Pharma's Return-on-Tangible-Asset too high?
Natco Pharma's current Return-on-Tangible-Asset of 7.64% is 51% below median its 10-year median of 15.45. Over the past 10 years, this metric has ranged from a low of 3.48 to a high of 25.01. The Drug Manufacturers industry median Return-on-Tangible-Asset is 3.09. Natco Pharma's value of 7.64% is 147.6% above this industry median. Based on the distribution chart, Natco Pharma ranks #173 out of 1006 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Natco Pharma has a GF Score™ of 88/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Natco Pharma's Return-on-Tangible-Asset compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Natco Pharma ranks #173 out of 1006 companies for Return-on-Tangible-Asset. This places Natco Pharma in the top 17% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.09. Natco Pharma's value of 7.64% is 147.6% above this benchmark. Historically, Natco Pharma's own Return-on-Tangible-Asset has ranged from 3.48 to 25.01 over the past decade. While the company's 10-year median is 15.45 vs. the industry median of 3.09, Natco Pharma 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 3.09, based on 1,006 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. Natco Pharma's current Return-on-Tangible-Asset of 7.64% is 147.6% 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 Natco Pharma and its competitors. For the Drug Manufacturers industry, the median Return-on-Tangible-Asset is 3.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Natco Pharma's current Return-on-Tangible-Asset is 7.64%, which is 51% below median its own 10-year median of 15.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Natco Pharma stock overvalued right now?
Based on GuruFocus' analysis, Natco Pharma (NSE:NATCOPHARM) is currently considered Fairly Valued. The stock's GF Value™ is ₹825.40, compared to a current price of ₹882.40 — trading 6.9% above its estimated fair value. The current Return-on-Tangible-Asset is 7.64%, which is 51% below median its 10-year median of 15.45 and 147.6% above the Drug Manufacturers industry median of 3.09. Natco Pharma's overall GF Score™ is 88/100 with 2 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 Natco Pharma (NSE:NATCOPHARM), the current Return-on-Tangible-Asset is 7.64% 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 Natco Pharma (NSE:NATCOPHARM) Overvalued in 2026?
Based on GuruFocus' analysis, Natco Pharma stock appears to be overvalued.
The current stock price of ₹882.40 is trading 6.9% above its estimated GF Value™ of ₹825.40.
GuruFocus considers Natco Pharma to be Fairly Valued.
Key valuation signals for NSE:NATCOPHARM:
Return-on-Tangible-Asset: 7.64% (51% below median its 10-year median of 15.45)
GF Value™: ₹825.40 vs. price of ₹882.40 (6.9% above fair value)
Industry Position: 147.6% above the Drug Manufacturers median (#173 of 1006)
No single metric tells the full story. See the NSE:NATCOPHARM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Natco Pharma Ltd is a drug manufacturing company. Natco aims to make specialty medicines accessible to all by manufacturing niche pharmaceutical products backed by its research and development capabilities. While the vast majority of the company's revenue is generated in India, the company looks internationally for growth opportunities. The company maintains a presence in Oncology and Hepatology treatment areas. Natco's active pharmaceutical ingredient segment APIs forms a core part of the company's business. The company operates in two different business segments: pharmaceuticals and agrochemicals. It derives maximum revenue from Pharmaceuticals Segment.
88GF Score
Get the complete analysis for NSE:NATCOPHARM
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