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Fermenta BiotechBOM:506414 +7.25%65 Return-on-Tangible-Equity is 19.21% as of Mar. 2026, which is 14% above its 10-year median of 16.80. GuruFocus rates BOM:506414 with a GF Score™ of 65/100 and a GF Value™ of ₹321.99 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 901 Drug Manufacturers companies, Fermenta Biotech ranks better than 77.47% 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. Fermenta Biotech's annualized net income for the quarter that ended in Mar. 2026 was ₹768 Mil. Fermenta Biotech's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹3,995 Mil. Therefore, Fermenta Biotech's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 19.21%.
The historical rank and industry rank for Fermenta Biotech's Return-on-Tangible-Equity or its related term are showing as below:
BOM:506414'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -16.11 Med: 16.8 Max: 65.17
Current: 19.11
During the past 13 years, Fermenta Biotech's highest Return-on-Tangible-Equity was 65.17%. The lowest was -16.11%. And the median was 16.80%.
BOM:506414's Return-on-Tangible-Equity is ranked better than 77.47% of 901
companies
in the Drug Manufacturers industry
Industry Median: 7.87
vs BOM:506414: 19.11
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.
Fermenta Biotech Return-on-Tangible-Equity Related Terms
Fermenta Biotech Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Fermenta Biotech'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:506414 vs ZTS: Return-on-Tangible-Equity Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Fermenta Biotech'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.
Fermenta Biotech Return-on-Tangible-Equity vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Fermenta Biotech's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Fermenta Biotech'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 19.21% mean?
Fermenta Biotech (BOM:506414) has a Return-on-Tangible-Equity of 19.21% 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 Fermenta Biotech and its competitors. This is 14% above median its historical median of 16.80. According to the industry distribution chart, Fermenta Biotech ranks #203 out of 901 companies in the Drug Manufacturers industry, placing it in the top 22.5%.
Is Fermenta Biotech's Return-on-Tangible-Equity too high?
Fermenta Biotech's current Return-on-Tangible-Equity of 19.21% is 14% above median its 10-year median of 16.80. The Drug Manufacturers industry median Return-on-Tangible-Equity is 7.87. Fermenta Biotech's value of 19.21% is 144.1% above this industry median. Based on the distribution chart, Fermenta Biotech ranks #203 out of 901 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Fermenta Biotech has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Fermenta Biotech's Return-on-Tangible-Equity compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Fermenta Biotech ranks #203 out of 901 companies for Return-on-Tangible-Equity. This places Fermenta Biotech in the top 23% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.87. Fermenta Biotech's value of 19.21% is 144.1% above this benchmark. While the company's 10-year median is 16.80 vs. the industry median of 7.87, Fermenta Biotech 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. Fermenta Biotech's current Return-on-Tangible-Equity of 19.21% is 144.1% 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 Fermenta Biotech 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. Fermenta Biotech's current Return-on-Tangible-Equity is 19.21%, which is 14% above median its own 10-year median of 16.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fermenta Biotech stock overvalued right now?
Based on GuruFocus' analysis, Fermenta Biotech (BOM:506414) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹321.99, compared to a current price of ₹499.30 — trading 55.1% above its estimated fair value. The current Return-on-Tangible-Equity is 19.21%, which is 14% above median its 10-year median of 16.80 and 144.1% above the Drug Manufacturers industry median of 7.87. Fermenta Biotech's overall GF Score™ is 65/100 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 Fermenta Biotech (BOM:506414), the current Return-on-Tangible-Equity is 19.21% 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 Fermenta Biotech (BOM:506414) Overvalued in 2026?
Based on GuruFocus' analysis, Fermenta Biotech stock appears to be overvalued.
The current stock price of ₹499.30 is trading 55.1% above its estimated GF Value™ of ₹321.99.
GuruFocus considers Fermenta Biotech to be Significantly Overvalued.
Key valuation signals for BOM:506414:
Return-on-Tangible-Equity: 19.21% (14% above median its 10-year median of 16.80)
GF Value™: ₹321.99 vs. price of ₹499.30 (55.1% above fair value)
Industry Position: 144.1% above the Drug Manufacturers median (#203 of 901)
No single metric tells the full story. See the BOM:506414 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fermenta Biotech Ltd is engaged in the business of manufacturing and marketing chemicals, bulk drugs, enzymes, pharmaceutical formulations, and environmental solution products and renting and selling properties. It is a manufacturer and supplier of Vitamin D and also supplies Penicillin G Amidase, CAL B Lipase, Polymer Supports, and enzyme technologies. The company operates in two segments namely Property and Bulk Drugs/Chemicals. The majority of the revenue comes from the Bulk Drug/Chemicals segment. Geographically, it caters to both domestic and international markets and generates maximum revenue from the Indian market.
65GF Score
Get the complete analysis for BOM:506414
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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