Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Parnax LabBOM:506128 -1.30%69 Return-on-Tangible-Equity is 9.22% as of Mar. 2026, which is 29% below its 10-year median of 12.93. GuruFocus rates BOM:506128 with a GF Score™ of 69/100 and a GF Value™ of ₹149.14 (Fairly Valued). The stock has 4 warning signs investors should review. Among 901 Drug Manufacturers companies, Parnax Lab ranks better than 67.15% 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. Parnax Lab's annualized net income for the quarter that ended in Mar. 2026 was ₹87 Mil. Parnax Lab's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹945 Mil. Therefore, Parnax Lab's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 9.22%.
The historical rank and industry rank for Parnax Lab's Return-on-Tangible-Equity or its related term are showing as below:
BOM:506128'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -8.57 Med: 12.93 Max: 20.48
Current: 13.3
During the past 13 years, Parnax Lab's highest Return-on-Tangible-Equity was 20.48%. The lowest was -8.57%. And the median was 12.93%.
BOM:506128's Return-on-Tangible-Equity is ranked better than 67.15% of 901
companies
in the Drug Manufacturers industry
Industry Median: 7.87
vs BOM:506128: 13.30
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.
Parnax Lab Return-on-Tangible-Equity Related Terms
Parnax Lab Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Parnax Lab'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:506128 vs ZTS: Return-on-Tangible-Equity Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Parnax Lab'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.
Parnax Lab Return-on-Tangible-Equity vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Parnax Lab's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Parnax Lab'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 (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 9.22% mean?
Parnax Lab (BOM:506128) has a Return-on-Tangible-Equity of 9.22% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Parnax Lab and its competitors. This is 29% below median its historical median of 12.93. According to the industry distribution chart, Parnax Lab ranks #296 out of 901 companies in the Drug Manufacturers industry, placing it in the top 32.9%.
Is Parnax Lab's Return-on-Tangible-Equity too high?
Parnax Lab's current Return-on-Tangible-Equity of 9.22% is 29% below median its 10-year median of 12.93. The Drug Manufacturers industry median Return-on-Tangible-Equity is 7.87. Parnax Lab's value of 9.22% is 17.2% above this industry median. Based on the distribution chart, Parnax Lab ranks #296 out of 901 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Parnax Lab has a GF Score™ of 69/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Parnax Lab's Return-on-Tangible-Equity compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Parnax Lab ranks #296 out of 901 companies for Return-on-Tangible-Equity. This puts Parnax Lab in the upper half of its industry. The industry median Return-on-Tangible-Equity is 7.87. Parnax Lab's value of 9.22% is 17.2% above this benchmark. While the company's 10-year median is 12.93 vs. the industry median of 7.87, Parnax Lab 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 7.87, 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. Parnax Lab's current Return-on-Tangible-Equity of 9.22% is 17.2% 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 Parnax Lab and its competitors. For the Drug Manufacturers industry, the median Return-on-Tangible-Equity is 7.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Parnax Lab's current Return-on-Tangible-Equity is 9.22%, which is 29% below median its own 10-year median of 12.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Parnax Lab stock overvalued right now?
Based on GuruFocus' analysis, Parnax Lab (BOM:506128) is currently considered Fairly Valued. The stock's GF Value™ is ₹149.14, compared to a current price of ₹133.25 — trading 10.7% below its estimated fair value. The current Return-on-Tangible-Equity is 9.22%, which is 29% below median its 10-year median of 12.93 and 17.2% above the Drug Manufacturers industry median of 7.87. Parnax Lab's overall GF Score™ is 69/100 with 4 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 Parnax Lab (BOM:506128), the current Return-on-Tangible-Equity is 9.22% 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 Parnax Lab (BOM:506128) Overvalued in 2026?
Based on GuruFocus' analysis, Parnax Lab stock appears to be undervalued.
The current stock price of ₹133.25 is trading 10.7% below its estimated GF Value™ of ₹149.14.
GuruFocus considers Parnax Lab to be Fairly Valued.
Key valuation signals for BOM:506128:
Return-on-Tangible-Equity: 9.22% (29% below median its 10-year median of 12.93)
GF Value™: ₹149.14 vs. price of ₹133.25 (10.7% below fair value)
Industry Position: 17.2% above the Drug Manufacturers median (#296 of 901)
No single metric tells the full story. See the BOM:506128 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Address104 - 107, Building No. 8, Gala No. 114, Jogani Industrial Complex, Panchsheel Nagar, Next to Modi Hyundai Service Centre, Chunabhatti, Sion, Mumbai, MH, IND, 400 022
Parnax Lab Ltd is principally engaged in the manufacturing and export of Pharmaceutical Formulations. Its product categories include Pharmaceuticals; Cosmetics; Herbal and Nutraceuticals. The company is developing and delivering Oral Formulations such as Cough Expectorants, Antacids, Anti-Histamines, Multi-Vitamins, Enzyme Preparations, Pediatric Formulations, Special Formulations for Geriatrics, Highly Viscous Products, Suspensions, and others.
69GF Score
Get the complete analysis for BOM:506128
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
BOM:506128 has been successfully added to your 
