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Smruthi OrganicsBOM:540686 +0.65%68 Return-on-Tangible-Equity is 5.82% as of Mar. 2026, which is 3% above its 10-year median of 5.67. GuruFocus rates BOM:540686 with a GF Score™ of 68/100 and a GF Value™ of ₹106.20 (Fairly Valued). The stock has 4 warning signs investors should review. Among 899 Drug Manufacturers companies, Smruthi Organics ranks worse than 59.84% 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. Smruthi Organics's annualized net income for the quarter that ended in Mar. 2026 was ₹43 Mil. Smruthi Organics's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹734 Mil. Therefore, Smruthi Organics's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 5.82%.
The historical rank and industry rank for Smruthi Organics's Return-on-Tangible-Equity or its related term are showing as below:
BOM:540686'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -10.5 Med: 5.67 Max: 33.24
Current: 4.77
During the past 13 years, Smruthi Organics's highest Return-on-Tangible-Equity was 33.24%. The lowest was -10.50%. And the median was 5.67%.
BOM:540686's Return-on-Tangible-Equity is ranked worse than 59.84% of 899
companies
in the Drug Manufacturers industry
Industry Median: 7.9
vs BOM:540686: 4.77
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.
Smruthi Organics Return-on-Tangible-Equity Related Terms
Smruthi Organics Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Smruthi Organics'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:540686 vs ZTS, UTHR: Return-on-Tangible-Equity Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Smruthi Organics'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.
Smruthi Organics Return-on-Tangible-Equity vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Smruthi Organics's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Smruthi Organics'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 5.82% mean?
Smruthi Organics (BOM:540686) has a Return-on-Tangible-Equity of 5.82% 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 Smruthi Organics and its competitors. This is near median its historical median of 5.67. According to the industry distribution chart, Smruthi Organics ranks #538 out of 899 companies in the Drug Manufacturers industry, placing it in the top 59.8%.
Is Smruthi Organics' Return-on-Tangible-Equity too high?
Smruthi Organics' current Return-on-Tangible-Equity of 5.82% is near median its 10-year median of 5.67. The Drug Manufacturers industry median Return-on-Tangible-Equity is 7.90. Smruthi Organics' value of 5.82% is 26.3% below this industry median. Based on the distribution chart, Smruthi Organics ranks #538 out of 899 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Smruthi Organics has a GF Score™ of 68/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Smruthi Organics' Return-on-Tangible-Equity compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Smruthi Organics ranks #538 out of 899 companies for Return-on-Tangible-Equity. This places Smruthi Organics in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.90. Smruthi Organics' value of 5.82% is 26.3% below this benchmark. While the company's 10-year median is 5.67 vs. the industry median of 7.90, Smruthi Organics has consistently been below 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 899 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. Smruthi Organics's current Return-on-Tangible-Equity of 5.82% is 26.3% below 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 Smruthi Organics 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. Smruthi Organics's current Return-on-Tangible-Equity is 5.82%, which is near median its own 10-year median of 5.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Smruthi Organics stock overvalued right now?
Based on GuruFocus' analysis, Smruthi Organics (BOM:540686) is currently considered Fairly Valued. The stock's GF Value™ is ₹106.20, compared to a current price of ₹115.80 — trading 9% above its estimated fair value. The current Return-on-Tangible-Equity is 5.82%, which is near median its 10-year median of 5.67 and 26.3% below the Drug Manufacturers industry median of 7.90. Smruthi Organics' overall GF Score™ is 68/100 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 Smruthi Organics (BOM:540686), the current Return-on-Tangible-Equity is 5.82% 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 Smruthi Organics (BOM:540686) Overvalued in 2026?
Based on GuruFocus' analysis, Smruthi Organics stock appears to be overvalued.
The current stock price of ₹115.80 is trading 9% above its estimated GF Value™ of ₹106.20.
GuruFocus considers Smruthi Organics to be Fairly Valued.
Key valuation signals for BOM:540686:
Return-on-Tangible-Equity: 5.82% (near median its 10-year median of 5.67)
GF Value™: ₹106.20 vs. price of ₹115.80 (9% above fair value)
Industry Position: 26.3% below the Drug Manufacturers median (#538 of 899)
No single metric tells the full story. See the BOM:540686 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Smruthi Organics Ltd is engaged in the manufacture of bulk drugs and drug intermediates (API Products). The product portfolio includes Amlodipine Besilate, Amlodipine Base, S-Amlodipine Besilate, S-Amlodipine Base, Norfloxacin, Metformin HCI, Diloxanide Furoate, Phthaloyl Amlodipine, Pantoprazole Sodium, Pefloxacin Mesylate Dihydrate, Telmisartan, Losartan Potassium, and many more. It has two reportable business segments: Bulk Drugs and Drugs Intermediates (API), and Formulation. It generates the majority of its revenue from the Bulk Drugs and Drugs Intermediates (API) segment. Geographically, the company generates maximum revenue from outside India through exports, and the rest from its business within India.
68GF Score
Get the complete analysis for BOM:540686
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