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Natco PharmaNSE:NATCOPHARM +0.61%89 Return-on-Tangible-Equity is 11.95% as of Mar. 2026, which is 36% below its 10-year median of 18.55. GuruFocus rates NSE:NATCOPHARM with a GF Score™ of 89/100 and a GF Value™ of ₹923.71 (Fairly Valued). The stock has 2 warning signs investors should review. Among 900 Drug Manufacturers companies, Natco Pharma ranks better than 74.33% 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. Natco Pharma's annualized net income for the quarter that ended in Mar. 2026 was ₹10,716 Mil. Natco Pharma's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹89,638 Mil. Therefore, Natco Pharma's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 11.95%.
The historical rank and industry rank for Natco Pharma's Return-on-Tangible-Equity or its related term are showing as below:
NSE:NATCOPHARM'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 4.12 Med: 18.55 Max: 33.2
Current: 17.23
During the past 13 years, Natco Pharma's highest Return-on-Tangible-Equity was 33.20%. The lowest was 4.12%. And the median was 18.55%.
NSE:NATCOPHARM's Return-on-Tangible-Equity is ranked better than 74.33% of 900
companies
in the Drug Manufacturers industry
Industry Median: 7.925
vs NSE:NATCOPHARM: 17.23
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.
Natco Pharma Return-on-Tangible-Equity Related Terms
Natco Pharma Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Natco 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:NATCOPHARM vs ZTS: Return-on-Tangible-Equity Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Natco 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.
Natco Pharma Return-on-Tangible-Equity vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Natco Pharma's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Natco 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 (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 11.95% mean?
Natco Pharma (NSE:NATCOPHARM) has a Return-on-Tangible-Equity of 11.95% 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 Natco Pharma and its competitors. This is 36% below median its historical median of 18.55. Over the past decade, Natco Pharma's Return-on-Tangible-Equity has ranged from 4.12 to 33.20. According to the industry distribution chart, Natco Pharma ranks #231 out of 900 companies in the Drug Manufacturers industry, placing it in the top 25.7%.
Is Natco Pharma's Return-on-Tangible-Equity too high?
Natco Pharma's current Return-on-Tangible-Equity of 11.95% is 36% below median its 10-year median of 18.55. Over the past 10 years, this metric has ranged from a low of 4.12 to a high of 33.20. The Drug Manufacturers industry median Return-on-Tangible-Equity is 7.93. Natco Pharma's value of 11.95% is 50.8% above this industry median. Based on the distribution chart, Natco Pharma ranks #231 out of 900 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Natco Pharma has a GF Score™ of 89/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Natco Pharma's Return-on-Tangible-Equity compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Natco Pharma ranks #231 out of 900 companies for Return-on-Tangible-Equity. This puts Natco Pharma in the upper half of its industry. The industry median Return-on-Tangible-Equity is 7.93. Natco Pharma's value of 11.95% is 50.8% above this benchmark. Historically, Natco Pharma's own Return-on-Tangible-Equity has ranged from 4.12 to 33.20 over the past decade. While the company's 10-year median is 18.55 vs. the industry median of 7.93, Natco 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 7.93, based on 900 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. Natco Pharma's current Return-on-Tangible-Equity of 11.95% is 50.8% 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 Natco Pharma and its competitors. For the Drug Manufacturers industry, the median Return-on-Tangible-Equity is 7.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Natco Pharma's current Return-on-Tangible-Equity is 11.95%, which is 36% below median its own 10-year median of 18.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Natco Pharma stock overvalued right now?
Based on GuruFocus' analysis, Natco Pharma (NSE:NATCOPHARM) is currently considered Fairly Valued. The stock's GF Value™ is ₹923.71, compared to a current price of ₹927.10 — trading 0.4% above its estimated fair value. The current Return-on-Tangible-Equity is 11.95%, which is 36% below median its 10-year median of 18.55 and 50.8% above the Drug Manufacturers industry median of 7.93. Natco Pharma's overall GF Score™ is 89/100 with 2 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 Natco Pharma (NSE:NATCOPHARM), the current Return-on-Tangible-Equity is 11.95% 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 Natco Pharma (NSE:NATCOPHARM) Overvalued in 2026?
Based on GuruFocus' analysis, Natco Pharma stock appears to be overvalued.
The current stock price of ₹927.10 is trading 0.4% above its estimated GF Value™ of ₹923.71.
GuruFocus considers Natco Pharma to be Fairly Valued.
Key valuation signals for NSE:NATCOPHARM:
Return-on-Tangible-Equity: 11.95% (36% below median its 10-year median of 18.55)
GF Value™: ₹923.71 vs. price of ₹927.10 (0.4% above fair value)
Industry Position: 50.8% above the Drug Manufacturers median (#231 of 900)
No single metric tells the full story. See the NSE:NATCOPHARM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Natco Pharma Ltd is a drug manufacturing company. Natco aims to make specialty medicines accessible to all by manufacturing niche pharmaceutical products backed by its research and development capabilities. While the vast majority of the company's revenue is generated in India, the company looks internationally for growth opportunities. The company maintains a presence in Oncology and Hepatology treatment areas. Natco's active pharmaceutical ingredient segment APIs forms a core part of the company's business. The company operates in two different business segments: pharmaceuticals and agrochemicals. It derives maximum revenue from Pharmaceuticals Segment.
89GF Score
Get the complete analysis for NSE:NATCOPHARM
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