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Ajanta PharmaNSE:AJANTPHARM -0.66%95 Return-on-Tangible-Equity is 29.80% as of Jun. 2026, which is 27% above its 10-year median of 23.51. GuruFocus rates NSE:AJANTPHARM with a GF Score™ of 95/100 and a GF Value™ of ₹3,348.50 (Fairly Valued). The stock has 6 warning signs investors should review. Among 895 Drug Manufacturers companies, Ajanta Pharma ranks better than 85.47% 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. Ajanta Pharma's annualized net income for the quarter that ended in Jun. 2026 was ₹13,369 Mil. Ajanta Pharma's average shareholder tangible equity for the quarter that ended in Jun. 2026 was ₹44,855 Mil. Therefore, Ajanta Pharma's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 29.80%.
The historical rank and industry rank for Ajanta Pharma's Return-on-Tangible-Equity or its related term are showing as below:
NSE:AJANTPHARM'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 17.72 Med: 23.51 Max: 36.91
Current: 27.23
During the past 13 years, Ajanta Pharma's highest Return-on-Tangible-Equity was 36.91%. The lowest was 17.72%. And the median was 23.51%.
NSE:AJANTPHARM's Return-on-Tangible-Equity is ranked better than 85.47% of 895
companies
in the Drug Manufacturers industry
Industry Median: 7.5
vs NSE:AJANTPHARM: 27.23
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.
Ajanta Pharma Return-on-Tangible-Equity Related Terms
Ajanta Pharma Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Ajanta Pharma'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:AJANTPHARM vs ZTS: Return-on-Tangible-Equity Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Ajanta Pharma'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.
Ajanta Pharma Return-on-Tangible-Equity vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Ajanta Pharma's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Ajanta Pharma'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 29.80% mean?
Ajanta Pharma (NSE:AJANTPHARM) has a Return-on-Tangible-Equity of 29.80% 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 Ajanta Pharma and its competitors. This is 27% above median its historical median of 23.51. Over the past decade, Ajanta Pharma's Return-on-Tangible-Equity has ranged from 17.72 to 36.91. According to the industry distribution chart, Ajanta Pharma ranks #130 out of 895 companies in the Drug Manufacturers industry, placing it in the top 14.5%.
Is Ajanta Pharma's Return-on-Tangible-Equity too high?
Ajanta Pharma's current Return-on-Tangible-Equity of 29.80% is 27% above median its 10-year median of 23.51. Over the past 10 years, this metric has ranged from a low of 17.72 to a high of 36.91. The Drug Manufacturers industry median Return-on-Tangible-Equity is 7.50. Ajanta Pharma's value of 29.80% is 297.3% above this industry median. Based on the distribution chart, Ajanta Pharma ranks #130 out of 895 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Ajanta Pharma has a GF Score™ of 95/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Ajanta Pharma's Return-on-Tangible-Equity compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Ajanta Pharma ranks #130 out of 895 companies for Return-on-Tangible-Equity. This places Ajanta Pharma in the top 15% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.50. Ajanta Pharma's value of 29.80% is 297.3% above this benchmark. Historically, Ajanta Pharma's own Return-on-Tangible-Equity has ranged from 17.72 to 36.91 over the past decade. While the company's 10-year median is 23.51 vs. the industry median of 7.50, Ajanta Pharma 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 7.50, based on 895 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. Ajanta Pharma's current Return-on-Tangible-Equity of 29.80% is 297.3% 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 Ajanta Pharma and its competitors. For the Drug Manufacturers industry, the median Return-on-Tangible-Equity is 7.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ajanta Pharma's current Return-on-Tangible-Equity is 29.80%, which is 27% above median its own 10-year median of 23.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ajanta Pharma stock overvalued right now?
Based on GuruFocus' analysis, Ajanta Pharma (NSE:AJANTPHARM) is currently considered Fairly Valued. The stock's GF Value™ is ₹3,348.50, compared to a current price of ₹3,481.70 — trading 4% above its estimated fair value. The current Return-on-Tangible-Equity is 29.80%, which is 27% above median its 10-year median of 23.51 and 297.3% above the Drug Manufacturers industry median of 7.50. Ajanta Pharma's overall GF Score™ is 95/100 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 Ajanta Pharma (NSE:AJANTPHARM), the current Return-on-Tangible-Equity is 29.80% 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 Ajanta Pharma (NSE:AJANTPHARM) Overvalued in 2026?
Based on GuruFocus' analysis, Ajanta Pharma stock appears to be overvalued.
The current stock price of ₹3,481.70 is trading 4% above its estimated GF Value™ of ₹3,348.50.
GuruFocus considers Ajanta Pharma to be Fairly Valued.
Key valuation signals for NSE:AJANTPHARM:
Return-on-Tangible-Equity: 29.80% (27% above median its 10-year median of 23.51)
GF Value™: ₹3,348.50 vs. price of ₹3,481.70 (4% above fair value)
Industry Position: 297.3% above the Drug Manufacturers median (#130 of 895)
No single metric tells the full story. See the NSE:AJANTPHARM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ajanta Pharma Ltd is mainly involved in development, manufacturing and marketing of speciality pharmaceutical finished dosages. The operations of the Group are limited to only one segment viz. pharmaceuticals and related products. The company has presence in India, Emerging Market, Africa Institution, and USA. The company generates majority of revenue from Emerging market.
95GF Score
Get the complete analysis for NSE:AJANTPHARM
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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