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Novartis IndiaBOM:500672 -1.44%53 Return-on-Tangible-Equity is 15.75% as of Jun. 2026, which is 92% above its 10-year median of 8.21. GuruFocus rates BOM:500672 with a GF Score™ of 53/100 and a GF Value™ of ₹1,011.27 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 901 Drug Manufacturers companies, Novartis India ranks better than 63.82% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Novartis India's annualized net income for the quarter that ended in Jun. 2026 was ₹1,288 Mil. Novartis India's average shareholder tangible equity for the quarter that ended in Jun. 2026 was ₹8,178 Mil. Therefore, Novartis India's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 15.75%.
The historical rank and industry rank for Novartis India's Return-on-Tangible-Equity or its related term are showing as below:
BOM:500672'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -0.53 Med: 8.21 Max: 14.09
Current: 12.34
During the past 13 years, Novartis India's highest Return-on-Tangible-Equity was 14.09%. The lowest was -0.53%. And the median was 8.21%.
BOM:500672's Return-on-Tangible-Equity is ranked better than 63.82% of 901
companies
in the Drug Manufacturers industry
Industry Median: 7.89
vs BOM:500672: 12.34
Novartis India (BOM:500672) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Novartis India Return-on-Tangible-Equity Related Terms
Novartis India Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Novartis India's Return-on-Tangible-Equity 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:500672 vs ZTS: Return-on-Tangible-Equity Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Novartis India's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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.
Novartis India Return-on-Tangible-Equity vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Novartis India's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Novartis India's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 15.75% mean?
Novartis India (BOM:500672) has a Return-on-Tangible-Equity of 15.75% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Novartis India and its competitors. This is 92% above median its historical median of 8.21. According to the industry distribution chart, Novartis India ranks #326 out of 901 companies in the Drug Manufacturers industry, placing it in the top 36.2%.
Is Novartis India's Return-on-Tangible-Equity too high?
Novartis India's current Return-on-Tangible-Equity of 15.75% is 92% above median its 10-year median of 8.21. The Drug Manufacturers industry median Return-on-Tangible-Equity is 7.89. Novartis India's value of 15.75% is 99.6% above this industry median. Based on the distribution chart, Novartis India ranks #326 out of 901 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Novartis India has a GF Score™ of 53/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Novartis India's Return-on-Tangible-Equity compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Novartis India ranks #326 out of 901 companies for Return-on-Tangible-Equity. This puts Novartis India in the upper half of its industry. The industry median Return-on-Tangible-Equity is 7.89. Novartis India's value of 15.75% is 99.6% above this benchmark. While the company's 10-year median is 8.21 vs. the industry median of 7.89, Novartis India 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-Equity for a Drug Manufacturers company?
The median Return-on-Tangible-Equity among Drug Manufacturers companies is 7.89, based on 901 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Novartis India's current Return-on-Tangible-Equity of 15.75% is 99.6% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Novartis India and its competitors. For the Drug Manufacturers industry, the median Return-on-Tangible-Equity is 7.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Novartis India's current Return-on-Tangible-Equity is 15.75%, which is 92% above median its own 10-year median of 8.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Novartis India stock overvalued right now?
Based on GuruFocus' analysis, Novartis India (BOM:500672) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹1,011.27, compared to a current price of ₹1,572.85 — trading 55.5% above its estimated fair value. The current Return-on-Tangible-Equity is 15.75%, which is 92% above median its 10-year median of 8.21 and 99.6% above the Drug Manufacturers industry median of 7.89. Novartis India's overall GF Score™ is 53/100 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Novartis India (BOM:500672), the current Return-on-Tangible-Equity is 15.75% 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 Novartis India (BOM:500672) Overvalued in 2026?
Based on GuruFocus' analysis, Novartis India stock appears to be overvalued.
The current stock price of ₹1,572.85 is trading 55.5% above its estimated GF Value™ of ₹1,011.27.
GuruFocus considers Novartis India to be Significantly Overvalued.
Key valuation signals for BOM:500672:
Return-on-Tangible-Equity: 15.75% (92% above median its 10-year median of 8.21)
GF Value™: ₹1,011.27 vs. price of ₹1,572.85 (55.5% above fair value)
Industry Position: 99.6% above the Drug Manufacturers median (#326 of 901)
No single metric tells the full story. See the BOM:500672 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Novartis India Ltd is an Indian-based pharmaceutical company. The company is engaged in the trading of Drugs and Pharmaceuticals. It derives revenue from operations in India. The company operates in a single business segment, namely Pharmaceutical Business. Its Pharmaceutical business focuses on Bone and Pain, Transplantation Immunology, and Neurosciences.
53GF Score
Get the complete analysis for BOM:500672
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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