Divi's LaboratoriesNSE:DIVISLAB +0.33%94 Return-on-Tangible-Equity is 17.93% as of Mar. 2026, which is 1% above its 10-year median of 17.75. GuruFocus rates NSE:DIVISLAB with a GF Score™ of 94/100 and a GF Value™ of ₹6,732.51 (Fairly Valued). The stock has 5 warning signs investors should review. Among 896 Drug Manufacturers companies, Divi's Laboratories ranks better than 73.33% 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. Divi's Laboratories's annualized net income for the quarter that ended in Mar. 2026 was ₹30,040 Mil. Divi's Laboratories's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹167,550 Mil. Therefore, Divi's Laboratories's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 17.93%.
The historical rank and industry rank for Divi's Laboratories's Return-on-Tangible-Equity or its related term are showing as below:
NSE:DIVISLAB'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 12.15 Med: 17.75 Max: 28.18
Current: 16.35
During the past 13 years, Divi's Laboratories's highest Return-on-Tangible-Equity was 28.18%. The lowest was 12.15%. And the median was 17.75%.
NSE:DIVISLAB's Return-on-Tangible-Equity is ranked better than 73.33% of 896
companies
in the Drug Manufacturers industry
Industry Median: 7.795
vs NSE:DIVISLAB: 16.35
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.
Divi's Laboratories Return-on-Tangible-Equity Related Terms
Divi's Laboratories Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Divi's Laboratories'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:DIVISLAB vs ZTS, UTHR: Return-on-Tangible-Equity Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Divi's Laboratories'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.
Divi's Laboratories Return-on-Tangible-Equity vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Divi's Laboratories's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Divi's Laboratories'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 17.93% mean?
Divi's Laboratories (NSE:DIVISLAB) has a Return-on-Tangible-Equity of 17.93% 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 Divi's Laboratories and its competitors. This is near median its historical median of 17.75. Over the past decade, Divi's Laboratories' Return-on-Tangible-Equity has ranged from 12.15 to 28.18. According to the industry distribution chart, Divi's Laboratories ranks #239 out of 896 companies in the Drug Manufacturers industry, placing it in the top 26.7%.
Is Divi's Laboratories' Return-on-Tangible-Equity too high?
Divi's Laboratories' current Return-on-Tangible-Equity of 17.93% is near median its 10-year median of 17.75. Over the past 10 years, this metric has ranged from a low of 12.15 to a high of 28.18. The Drug Manufacturers industry median Return-on-Tangible-Equity is 7.80. Divi's Laboratories' value of 17.93% is 130% above this industry median. Based on the distribution chart, Divi's Laboratories ranks #239 out of 896 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Divi's Laboratories has a GF Score™ of 94/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Divi's Laboratories' Return-on-Tangible-Equity compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Divi's Laboratories ranks #239 out of 896 companies for Return-on-Tangible-Equity. This puts Divi's Laboratories in the upper half of its industry. The industry median Return-on-Tangible-Equity is 7.80. Divi's Laboratories' value of 17.93% is 130% above this benchmark. Historically, Divi's Laboratories' own Return-on-Tangible-Equity has ranged from 12.15 to 28.18 over the past decade. While the company's 10-year median is 17.75 vs. the industry median of 7.80, Divi's Laboratories 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 7.80, based on 896 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. Divi's Laboratories's current Return-on-Tangible-Equity of 17.93% is 130% 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 Divi's Laboratories and its competitors. For the Drug Manufacturers industry, the median Return-on-Tangible-Equity is 7.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Divi's Laboratories's current Return-on-Tangible-Equity is 17.93%, which is near median its own 10-year median of 17.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Divi's Laboratories stock overvalued right now?
Based on GuruFocus' analysis, Divi's Laboratories (NSE:DIVISLAB) is currently considered Fairly Valued. The stock's GF Value™ is ₹6,732.51, compared to a current price of ₹6,579.00 — trading 2.3% below its estimated fair value. The current Return-on-Tangible-Equity is 17.93%, which is near median its 10-year median of 17.75 and 130% above the Drug Manufacturers industry median of 7.80. Divi's Laboratories' overall GF Score™ is 94/100 with 5 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 Divi's Laboratories (NSE:DIVISLAB), the current Return-on-Tangible-Equity is 17.93% 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 Divi's Laboratories (NSE:DIVISLAB) Overvalued in 2026?
Based on GuruFocus' analysis, Divi's Laboratories stock appears to be undervalued.
The current stock price of ₹6,579.00 is trading 2.3% below its estimated GF Value™ of ₹6,732.51.
GuruFocus considers Divi's Laboratories to be Fairly Valued.
Key valuation signals for NSE:DIVISLAB:
Return-on-Tangible-Equity: 17.93% (near median its 10-year median of 17.75)
GF Value™: ₹6,732.51 vs. price of ₹6,579.00 (2.3% below fair value)
Industry Position: 130% above the Drug Manufacturers median (#239 of 896)
No single metric tells the full story. See the NSE:DIVISLAB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Divi's Laboratories Ltd is a specialty and generic drug manufacturing company. It is engaged in the manufacture of Active Pharmaceutical ingredients (API), Intermediates, and Nutraceutical ingredients, with a predominance in exports. It also, through its custom synthesis, supports pharma companies for their patented products business from gram-scale requirements for clinical trials to launch, as well as late-life cycle management. Geographically, the company derives maximum revenue from Europe, and the rest from America, India, Asia (excluding India), and the Rest of the world.
94GF Score
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