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.
Laurus LabsBOM:540222 +1.35%66 Return-on-Tangible-Equity is 29.20% as of Jun. 2026, which is 76% above its 10-year median of 16.56. GuruFocus rates BOM:540222 with a GF Score™ of 66/100 and a GF Value™ of ₹820.88 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 900 Drug Manufacturers companies, Laurus Labs ranks better than 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. Laurus Labs's annualized net income for the quarter that ended in Jun. 2026 was ₹14,704 Mil. Laurus Labs's average shareholder tangible equity for the quarter that ended in Jun. 2026 was ₹50,354 Mil. Therefore, Laurus Labs's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 29.20%.
The historical rank and industry rank for Laurus Labs's Return-on-Tangible-Equity or its related term are showing as below:
BOM:540222'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 4.21 Med: 16.56 Max: 48.07
Current: 23.8
During the past 13 years, Laurus Labs's highest Return-on-Tangible-Equity was 48.07%. The lowest was 4.21%. And the median was 16.56%.
BOM:540222's Return-on-Tangible-Equity is ranked better than 82% of 900
companies
in the Drug Manufacturers industry
Industry Median: 7.895
vs BOM:540222: 23.80
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.
Laurus Labs Return-on-Tangible-Equity Related Terms
Laurus Labs Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Laurus Labs'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:540222 vs ZTS: Return-on-Tangible-Equity Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Laurus Labs'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.
Laurus Labs Return-on-Tangible-Equity vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Laurus Labs's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Laurus Labs'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 29.20% mean?
Laurus Labs (BOM:540222) has a Return-on-Tangible-Equity of 29.20% 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 Laurus Labs and its competitors. This is 76% above median its historical median of 16.56. Over the past decade, Laurus Labs' Return-on-Tangible-Equity has ranged from 4.21 to 48.07. According to the industry distribution chart, Laurus Labs ranks #162 out of 900 companies in the Drug Manufacturers industry, placing it in the top 18%.
Is Laurus Labs' Return-on-Tangible-Equity too high?
Laurus Labs' current Return-on-Tangible-Equity of 29.20% is 76% above median its 10-year median of 16.56. Over the past 10 years, this metric has ranged from a low of 4.21 to a high of 48.07. The Drug Manufacturers industry median Return-on-Tangible-Equity is 7.90. Laurus Labs' value of 29.20% is 269.9% above this industry median. Based on the distribution chart, Laurus Labs ranks #162 out of 900 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Laurus Labs has a GF Score™ of 66/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Laurus Labs' Return-on-Tangible-Equity compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Laurus Labs ranks #162 out of 900 companies for Return-on-Tangible-Equity. This places Laurus Labs in the top 18% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.90. Laurus Labs' value of 29.20% is 269.9% above this benchmark. Historically, Laurus Labs' own Return-on-Tangible-Equity has ranged from 4.21 to 48.07 over the past decade. While the company's 10-year median is 16.56 vs. the industry median of 7.90, Laurus Labs 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 7.90, based on 900 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. Laurus Labs's current Return-on-Tangible-Equity of 29.20% is 269.9% 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 Laurus Labs and its competitors. For the Drug Manufacturers industry, the median Return-on-Tangible-Equity is 7.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Laurus Labs's current Return-on-Tangible-Equity is 29.20%, which is 76% above median its own 10-year median of 16.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Laurus Labs stock overvalued right now?
Based on GuruFocus' analysis, Laurus Labs (BOM:540222) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹820.88, compared to a current price of ₹1,781.65 — trading 117% above its estimated fair value. The current Return-on-Tangible-Equity is 29.20%, which is 76% above median its 10-year median of 16.56 and 269.9% above the Drug Manufacturers industry median of 7.90. Laurus Labs' overall GF Score™ is 66/100 with 6 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 Laurus Labs (BOM:540222), the current Return-on-Tangible-Equity is 29.20% 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 Laurus Labs (BOM:540222) Overvalued in 2026?
Based on GuruFocus' analysis, Laurus Labs stock appears to be overvalued.
The current stock price of ₹1,781.65 is trading 117% above its estimated GF Value™ of ₹820.88.
GuruFocus considers Laurus Labs to be Significantly Overvalued.
Key valuation signals for BOM:540222:
Return-on-Tangible-Equity: 29.20% (76% above median its 10-year median of 16.56)
GF Value™: ₹820.88 vs. price of ₹1,781.65 (117% above fair value)
Industry Position: 269.9% above the Drug Manufacturers median (#162 of 900)
No single metric tells the full story. See the BOM:540222 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Laurus Labs Ltd is a pharmaceutical company based in India. It provides active pharmaceutical ingredients (API) including intermediates, Generic Finished dosage forms (FDF), and Contract Research services. The entity develops APIs and intermediates for select, high-growth antiretrovirals, Hepatitis C and Oncology. It also manufactures APIs in other therapeutic areas, such as anti-asthma, ophthalmology, anti-diabetics, cardiovascular, and proton pump inhibitors, among others. The company has its business presence in India and Outside India of which it derives a majority of revenue from Outside India. The company generates revenue from the sale of API, Intermediates and Formulations, Contract research services, and others.
66GF Score
Get the complete analysis for BOM:540222
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:540222 has been successfully added to your 
