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Aarti DrugsNSE:AARTIDRUGS -1.34%69 Return-on-Tangible-Equity is 14.41% as of Mar. 2026, which is 23% below its 10-year median of 18.80. GuruFocus rates NSE:AARTIDRUGS with a GF Score™ of 69/100 and a GF Value™ of ₹499.38 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 899 Drug Manufacturers companies, Aarti Drugs ranks better than 67.52% 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. Aarti Drugs's annualized net income for the quarter that ended in Mar. 2026 was ₹2,208 Mil. Aarti Drugs's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹15,324 Mil. Therefore, Aarti Drugs's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 14.41%.
The historical rank and industry rank for Aarti Drugs's Return-on-Tangible-Equity or its related term are showing as below:
NSE:AARTIDRUGS'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 13.19 Med: 18.8 Max: 35.85
Current: 13.61
During the past 13 years, Aarti Drugs's highest Return-on-Tangible-Equity was 35.85%. The lowest was 13.19%. And the median was 18.80%.
NSE:AARTIDRUGS's Return-on-Tangible-Equity is ranked better than 67.52% of 899
companies
in the Drug Manufacturers industry
Industry Median: 7.95
vs NSE:AARTIDRUGS: 13.61
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.
Aarti Drugs Return-on-Tangible-Equity Related Terms
Aarti Drugs Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Aarti Drugs'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.
NSE:AARTIDRUGS vs ZTS, UTHR: Return-on-Tangible-Equity Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Aarti Drugs'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.
Aarti Drugs Return-on-Tangible-Equity vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Aarti Drugs's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Aarti Drugs'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 14.41% mean?
Aarti Drugs (NSE:AARTIDRUGS) has a Return-on-Tangible-Equity of 14.41% 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 Aarti Drugs and its competitors. This is 23% below median its historical median of 18.80. Over the past decade, Aarti Drugs' Return-on-Tangible-Equity has ranged from 13.19 to 35.85. According to the industry distribution chart, Aarti Drugs ranks #292 out of 899 companies in the Drug Manufacturers industry, placing it in the top 32.5%.
Is Aarti Drugs' Return-on-Tangible-Equity too high?
Aarti Drugs' current Return-on-Tangible-Equity of 14.41% is 23% below median its 10-year median of 18.80. Over the past 10 years, this metric has ranged from a low of 13.19 to a high of 35.85. The Drug Manufacturers industry median Return-on-Tangible-Equity is 7.95. Aarti Drugs' value of 14.41% is 81.3% above this industry median. Based on the distribution chart, Aarti Drugs ranks #292 out of 899 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Aarti Drugs has a GF Score™ of 69/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Aarti Drugs' Return-on-Tangible-Equity compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Aarti Drugs ranks #292 out of 899 companies for Return-on-Tangible-Equity. This puts Aarti Drugs in the upper half of its industry. The industry median Return-on-Tangible-Equity is 7.95. Aarti Drugs' value of 14.41% is 81.3% above this benchmark. Historically, Aarti Drugs' own Return-on-Tangible-Equity has ranged from 13.19 to 35.85 over the past decade. While the company's 10-year median is 18.80 vs. the industry median of 7.95, Aarti Drugs 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 7.95, 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. Aarti Drugs's current Return-on-Tangible-Equity of 14.41% is 81.3% 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 Aarti Drugs and its competitors. For the Drug Manufacturers industry, the median Return-on-Tangible-Equity is 7.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aarti Drugs's current Return-on-Tangible-Equity is 14.41%, which is 23% below median its own 10-year median of 18.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aarti Drugs stock overvalued right now?
Based on GuruFocus' analysis, Aarti Drugs (NSE:AARTIDRUGS) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹499.38, compared to a current price of ₹404.50 — trading 19% below its estimated fair value. The current Return-on-Tangible-Equity is 14.41%, which is 23% below median its 10-year median of 18.80 and 81.3% above the Drug Manufacturers industry median of 7.95. Aarti Drugs' overall GF Score™ is 69/100 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 Aarti Drugs (NSE:AARTIDRUGS), the current Return-on-Tangible-Equity is 14.41% 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 Aarti Drugs (NSE:AARTIDRUGS) Overvalued in 2026?
Based on GuruFocus' analysis, Aarti Drugs stock appears to be undervalued.
The current stock price of ₹404.50 is trading 19% below its estimated GF Value™ of ₹499.38.
GuruFocus considers Aarti Drugs to be Modestly Undervalued.
Key valuation signals for NSE:AARTIDRUGS:
Return-on-Tangible-Equity: 14.41% (23% below median its 10-year median of 18.80)
GF Value™: ₹499.38 vs. price of ₹404.50 (19% below fair value)
Industry Position: 81.3% above the Drug Manufacturers median (#292 of 899)
No single metric tells the full story. See the NSE:AARTIDRUGS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aarti Drugs Ltd is a pharmaceutical company. It offers active pharmaceutical ingredients (APIs), pharma intermediaries, specialty chemicals, and formulations in a range of therapeutic categories, such as anti-inflammatory, cardioprotectant, antibiotic, antidiabetic, and vitamins among others. The product offerings of the company comprise Aceclofenac, Celecoxib, Moxifloxacin, and others. The firm caters to both domestic and international markets and derives a majority of its revenue from its business in India.
69GF Score
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