Aarti PharmalabsNSE:AARTIPHARM -0.83%57 Return-on-Tangible-Equity is 12.22% as of Mar. 2026, which is 10% below its 10-year median of 13.51. GuruFocus rates NSE:AARTIPHARM with a GF Score™ of 57/100 and a GF Value™ of ₹642.32 (Fairly Valued). The stock has 3 warning signs investors should review. Among 897 Drug Manufacturers companies, Aarti Pharmalabs ranks better than 55.41% 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 Pharmalabs's annualized net income for the quarter that ended in Mar. 2026 was ₹2,445 Mil. Aarti Pharmalabs's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹20,007 Mil. Therefore, Aarti Pharmalabs's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 12.22%.
The historical rank and industry rank for Aarti Pharmalabs's Return-on-Tangible-Equity or its related term are showing as below:
NSE:AARTIPHARM'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -2.02 Med: 13.51 Max: 17.94
Current: 9.61
During the past 6 years, Aarti Pharmalabs's highest Return-on-Tangible-Equity was 17.94%. The lowest was -2.02%. And the median was 13.51%.
NSE:AARTIPHARM's Return-on-Tangible-Equity is ranked better than 55.41% of 897
companies
in the Drug Manufacturers industry
Industry Median: 7.9
vs NSE:AARTIPHARM: 9.61
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 Pharmalabs Return-on-Tangible-Equity Related Terms
Aarti Pharmalabs Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Aarti Pharmalabs'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:AARTIPHARM vs ZTS, UTHR: Return-on-Tangible-Equity Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Aarti Pharmalabs'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 Pharmalabs Return-on-Tangible-Equity vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Aarti Pharmalabs's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Aarti Pharmalabs'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 12.22% mean?
Aarti Pharmalabs (NSE:AARTIPHARM) has a Return-on-Tangible-Equity of 12.22% 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 Pharmalabs and its competitors. This is 10% below median its historical median of 13.51. According to the industry distribution chart, Aarti Pharmalabs ranks #400 out of 897 companies in the Drug Manufacturers industry, placing it in the top 44.6%.
Is Aarti Pharmalabs' Return-on-Tangible-Equity too high?
Aarti Pharmalabs' current Return-on-Tangible-Equity of 12.22% is 10% below median its 10-year median of 13.51. The Drug Manufacturers industry median Return-on-Tangible-Equity is 7.90. Aarti Pharmalabs' value of 12.22% is 54.7% above this industry median. Based on the distribution chart, Aarti Pharmalabs ranks #400 out of 897 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Aarti Pharmalabs has a GF Score™ of 57/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Aarti Pharmalabs' Return-on-Tangible-Equity compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Aarti Pharmalabs ranks #400 out of 897 companies for Return-on-Tangible-Equity. This puts Aarti Pharmalabs in the upper half of its industry. The industry median Return-on-Tangible-Equity is 7.90. Aarti Pharmalabs' value of 12.22% is 54.7% above this benchmark. While the company's 10-year median is 13.51 vs. the industry median of 7.90, Aarti Pharmalabs 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. Aarti Pharmalabs's current Return-on-Tangible-Equity of 12.22% is 54.7% 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 Pharmalabs 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. Aarti Pharmalabs's current Return-on-Tangible-Equity is 12.22%, which is 10% below median its own 10-year median of 13.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aarti Pharmalabs stock overvalued right now?
Based on GuruFocus' analysis, Aarti Pharmalabs (NSE:AARTIPHARM) is currently considered Fairly Valued. The stock's GF Value™ is ₹642.32, compared to a current price of ₹699.50 — trading 8.9% above its estimated fair value. The current Return-on-Tangible-Equity is 12.22%, which is 10% below median its 10-year median of 13.51 and 54.7% above the Drug Manufacturers industry median of 7.90. Aarti Pharmalabs' overall GF Score™ is 57/100 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 Pharmalabs (NSE:AARTIPHARM), the current Return-on-Tangible-Equity is 12.22% 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 Pharmalabs (NSE:AARTIPHARM) Overvalued in 2026?
Based on GuruFocus' analysis, Aarti Pharmalabs stock appears to be overvalued.
The current stock price of ₹699.50 is trading 8.9% above its estimated GF Value™ of ₹642.32.
GuruFocus considers Aarti Pharmalabs to be Fairly Valued.
Key valuation signals for NSE:AARTIPHARM:
Return-on-Tangible-Equity: 12.22% (10% below median its 10-year median of 13.51)
GF Value™: ₹642.32 vs. price of ₹699.50 (8.9% above fair value)
Industry Position: 54.7% above the Drug Manufacturers median (#400 of 897)
No single metric tells the full story. See the NSE:AARTIPHARM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aarti Pharmalabs Ltd manufactures pharmaceuticals and nutraceuticals with a footprint. The company manufactures Active Pharmaceutical Ingredients (API), pharmaceutical intermediates, acids, and xanthine derivatives, including caffeine, theophylline anhydrous, aminophylline, etophylline, and theophylline in India. It also offers Contract Development and Manufacturing Services (CDMS) for drug substance (NCE, RSM, Intermediates) projects. Geographically, the company generates maximum revenue from its customers located outside India.
57GF Score
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