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Zydus LifesciencesBOM:532321 -1.83%94 Return-on-Tangible-Equity is 38.74% as of Jun. 2026, which is 15% above its 10-year median of 33.78. GuruFocus rates BOM:532321 with a GF Score™ of 94/100 and a GF Value™ of ₹1,219.10 (Fairly Valued). The stock has 3 warning signs investors should review. Among 896 Drug Manufacturers companies, Zydus Lifesciences ranks better than 90.18% 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. Zydus Lifesciences's annualized net income for the quarter that ended in Jun. 2026 was ₹37,592 Mil. Zydus Lifesciences's average shareholder tangible equity for the quarter that ended in Jun. 2026 was ₹97,035 Mil. Therefore, Zydus Lifesciences's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 38.74%.
The historical rank and industry rank for Zydus Lifesciences's Return-on-Tangible-Equity or its related term are showing as below:
BOM:532321'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 17.72 Med: 33.78 Max: 53.05
Current: 39.21
During the past 13 years, Zydus Lifesciences's highest Return-on-Tangible-Equity was 53.05%. The lowest was 17.72%. And the median was 33.78%.
BOM:532321's Return-on-Tangible-Equity is ranked better than 90.18% of 896
companies
in the Drug Manufacturers industry
Industry Median: 7.515
vs BOM:532321: 39.21
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.
Zydus Lifesciences Return-on-Tangible-Equity Related Terms
Zydus Lifesciences Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Zydus Lifesciences'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:532321 vs ZTS: Return-on-Tangible-Equity Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Zydus Lifesciences'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.
Zydus Lifesciences Return-on-Tangible-Equity vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Zydus Lifesciences's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Zydus Lifesciences'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 38.74% mean?
Zydus Lifesciences (BOM:532321) has a Return-on-Tangible-Equity of 38.74% 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 Zydus Lifesciences and its competitors. This is 15% above median its historical median of 33.78. Over the past decade, Zydus Lifesciences' Return-on-Tangible-Equity has ranged from 17.72 to 53.05. According to the industry distribution chart, Zydus Lifesciences ranks #88 out of 896 companies in the Drug Manufacturers industry, placing it in the top 9.8%.
Is Zydus Lifesciences' Return-on-Tangible-Equity too high?
Zydus Lifesciences' current Return-on-Tangible-Equity of 38.74% is 15% above median its 10-year median of 33.78. Over the past 10 years, this metric has ranged from a low of 17.72 to a high of 53.05. The Drug Manufacturers industry median Return-on-Tangible-Equity is 7.52. Zydus Lifesciences' value of 38.74% is 415.5% above this industry median. Based on the distribution chart, Zydus Lifesciences ranks #88 out of 896 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Zydus Lifesciences has a GF Score™ of 94/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Zydus Lifesciences' Return-on-Tangible-Equity compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Zydus Lifesciences ranks #88 out of 896 companies for Return-on-Tangible-Equity. This places Zydus Lifesciences in the top 10% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.52. Zydus Lifesciences' value of 38.74% is 415.5% above this benchmark. Historically, Zydus Lifesciences' own Return-on-Tangible-Equity has ranged from 17.72 to 53.05 over the past decade. While the company's 10-year median is 33.78 vs. the industry median of 7.52, Zydus Lifesciences 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 7.52, based on 896 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. Zydus Lifesciences's current Return-on-Tangible-Equity of 38.74% is 415.5% 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 Zydus Lifesciences and its competitors. For the Drug Manufacturers industry, the median Return-on-Tangible-Equity is 7.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zydus Lifesciences's current Return-on-Tangible-Equity is 38.74%, which is 15% above median its own 10-year median of 33.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zydus Lifesciences stock overvalued right now?
Based on GuruFocus' analysis, Zydus Lifesciences (BOM:532321) is currently considered Fairly Valued. The stock's GF Value™ is ₹1,219.10, compared to a current price of ₹1,129.00 — trading 7.4% below its estimated fair value. The current Return-on-Tangible-Equity is 38.74%, which is 15% above median its 10-year median of 33.78 and 415.5% above the Drug Manufacturers industry median of 7.52. Zydus Lifesciences' overall GF Score™ is 94/100 with 3 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 Zydus Lifesciences (BOM:532321), the current Return-on-Tangible-Equity is 38.74% 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 Zydus Lifesciences (BOM:532321) Overvalued in 2026?
Based on GuruFocus' analysis, Zydus Lifesciences stock appears to be undervalued.
The current stock price of ₹1,129.00 is trading 7.4% below its estimated GF Value™ of ₹1,219.10.
GuruFocus considers Zydus Lifesciences to be Fairly Valued.
Key valuation signals for BOM:532321:
Return-on-Tangible-Equity: 38.74% (15% above median its 10-year median of 33.78)
GF Value™: ₹1,219.10 vs. price of ₹1,129.00 (7.4% below fair value)
Industry Position: 415.5% above the Drug Manufacturers median (#88 of 896)
No single metric tells the full story. See the BOM:532321 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zydus Lifesciences Ltd is a specialty and generic drug manufacturing company. It is engaged in the research, development, production, marketing, and distribution of pharmaceutical products. The product portfolio of the company includes Active Pharmaceutical Ingredients (API), human formulations, animal health and veterinary, and consumer health and wellness products. Its products are marketed under brands like Amlodac, Inditel, Pivasta, and others. The company's operating segments are: Pharmaceuticals, which derives key revenue, and Consumer products. Geographically, it generates maximum revenue from the United States, followed by India, and other countries.
94GF Score
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