Hoechst PakistanKAR:HPL +0.24%87 Return-on-Tangible-Equity is 36.72% as of Mar. 2026, which is 122% above its 10-year median of 16.53. GuruFocus rates KAR:HPL with a GF Score™ of 87/100 and a GF Value™ of ₨3,270.87 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 897 Drug Manufacturers companies, Hoechst Pakistan ranks better than 90.3% 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. Hoechst Pakistan's annualized net income for the quarter that ended in Mar. 2026 was ₨2,844 Mil. Hoechst Pakistan's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₨7,743 Mil. Therefore, Hoechst Pakistan's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 36.72%.
The historical rank and industry rank for Hoechst Pakistan's Return-on-Tangible-Equity or its related term are showing as below:
KAR:HPL'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 3.26 Med: 16.53 Max: 43.66
Current: 43.66
During the past 13 years, Hoechst Pakistan's highest Return-on-Tangible-Equity was 43.66%. The lowest was 3.26%. And the median was 16.53%.
KAR:HPL's Return-on-Tangible-Equity is ranked better than 90.3% of 897
companies
in the Drug Manufacturers industry
Industry Median: 7.9
vs KAR:HPL: 43.66
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.
Hoechst Pakistan Return-on-Tangible-Equity Related Terms
Hoechst Pakistan Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Hoechst Pakistan'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.
KAR:HPL vs LLY, JNJ, ABBV: Return-on-Tangible-Equity Comparison
For the Drug Manufacturers - General subindustry, Hoechst Pakistan'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.
Hoechst Pakistan Return-on-Tangible-Equity vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Hoechst Pakistan's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Hoechst Pakistan'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 36.72% mean?
Hoechst Pakistan (KAR:HPL) has a Return-on-Tangible-Equity of 36.72% 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 Hoechst Pakistan and its competitors. This is 122% above median its historical median of 16.53. Over the past decade, Hoechst Pakistan's Return-on-Tangible-Equity has ranged from 3.26 to 43.66. According to the industry distribution chart, Hoechst Pakistan ranks #87 out of 897 companies in the Drug Manufacturers industry, placing it in the top 9.7%.
Is Hoechst Pakistan's Return-on-Tangible-Equity too high?
Hoechst Pakistan's current Return-on-Tangible-Equity of 36.72% is 122% above median its 10-year median of 16.53. Over the past 10 years, this metric has ranged from a low of 3.26 to a high of 43.66. The Drug Manufacturers industry median Return-on-Tangible-Equity is 7.90. Hoechst Pakistan's value of 36.72% is 364.8% above this industry median. Based on the distribution chart, Hoechst Pakistan ranks #87 out of 897 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Hoechst Pakistan has a GF Score™ of 87/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hoechst Pakistan's Return-on-Tangible-Equity compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Hoechst Pakistan ranks #87 out of 897 companies for Return-on-Tangible-Equity. This places Hoechst Pakistan in the top 10% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.90. Hoechst Pakistan's value of 36.72% is 364.8% above this benchmark. Historically, Hoechst Pakistan's own Return-on-Tangible-Equity has ranged from 3.26 to 43.66 over the past decade. While the company's 10-year median is 16.53 vs. the industry median of 7.90, Hoechst Pakistan 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 897 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. Hoechst Pakistan's current Return-on-Tangible-Equity of 36.72% is 364.8% 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 Hoechst Pakistan 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. Hoechst Pakistan's current Return-on-Tangible-Equity is 36.72%, which is 122% above median its own 10-year median of 16.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hoechst Pakistan stock overvalued right now?
Based on GuruFocus' analysis, Hoechst Pakistan (KAR:HPL) is currently considered Modestly Overvalued. The stock's GF Value™ is ₨3,270.87, compared to a current price of ₨4,016.00 — trading 22.8% above its estimated fair value. The current Return-on-Tangible-Equity is 36.72%, which is 122% above median its 10-year median of 16.53 and 364.8% above the Drug Manufacturers industry median of 7.90. Hoechst Pakistan's overall GF Score™ is 87/100 with 1 warning sign 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 Hoechst Pakistan (KAR:HPL), the current Return-on-Tangible-Equity is 36.72% 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 Hoechst Pakistan (KAR:HPL) Overvalued in 2026?
Based on GuruFocus' analysis, Hoechst Pakistan stock appears to be overvalued.
The current stock price of ₨4,016.00 is trading 22.8% above its estimated GF Value™ of ₨3,270.87.
GuruFocus considers Hoechst Pakistan to be Modestly Overvalued.
Key valuation signals for KAR:HPL:
Return-on-Tangible-Equity: 36.72% (122% above median its 10-year median of 16.53)
GF Value™: ₨3,270.87 vs. price of ₨4,016.00 (22.8% above fair value)
Industry Position: 364.8% above the Drug Manufacturers median (#87 of 897)
No single metric tells the full story. See the KAR:HPL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hoechst Pakistan Ltd is a healthcare company of Pakistan, focused on patient needs and engaged in the manufacturing, promotion, and sale of pharmaceutical and vaccines. The company engages in the manufacturing, selling and trading of pharmaceutical and related products.
87GF Score
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