Quest LaboratoriesNSE:QUESTLAB -1.56%44 Return-on-Tangible-Equity is 12.86% as of Mar. 2026, which is 60% below its 10-year median of 32.38. GuruFocus rates NSE:QUESTLAB with a GF Score™ of 44/100. The stock has 8 warning signs investors should review. Among 899 Drug Manufacturers companies, Quest Laboratories ranks worse than 62.96% 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. Quest Laboratories's annualized net income for the quarter that ended in Mar. 2026 was ₹114.8 Mil. Quest Laboratories's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹893.1 Mil. Therefore, Quest Laboratories's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 12.86%.
The historical rank and industry rank for Quest Laboratories's Return-on-Tangible-Equity or its related term are showing as below:
NSE:QUESTLAB'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 3.21 Med: 32.38 Max: 51.69
Current: 3.21
During the past 6 years, Quest Laboratories's highest Return-on-Tangible-Equity was 51.69%. The lowest was 3.21%. And the median was 32.38%.
NSE:QUESTLAB's Return-on-Tangible-Equity is ranked worse than 62.96% of 899
companies
in the Drug Manufacturers industry
Industry Median: 7.68
vs NSE:QUESTLAB: 3.21
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.
Quest Laboratories Return-on-Tangible-Equity Related Terms
Quest Laboratories Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Quest 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:QUESTLAB vs LLY, JNJ, ABBV: Return-on-Tangible-Equity Comparison
For the Drug Manufacturers - General subindustry, Quest 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.
Quest Laboratories Return-on-Tangible-Equity vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Quest Laboratories's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Quest 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 12.86% mean?
Quest Laboratories (NSE:QUESTLAB) has a Return-on-Tangible-Equity of 12.86% 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 Quest Laboratories and its competitors. This is 60% below median its historical median of 32.38. Over the past decade, Quest Laboratories' Return-on-Tangible-Equity has ranged from 3.21 to 51.69. According to the industry distribution chart, Quest Laboratories ranks #566 out of 899 companies in the Drug Manufacturers industry, placing it in the top 63%.
Is Quest Laboratories' Return-on-Tangible-Equity too high?
Quest Laboratories' current Return-on-Tangible-Equity of 12.86% is 60% below median its 10-year median of 32.38. Over the past 10 years, this metric has ranged from a low of 3.21 to a high of 51.69. The Drug Manufacturers industry median Return-on-Tangible-Equity is 7.68. Quest Laboratories' value of 12.86% is 67.4% above this industry median. Based on the distribution chart, Quest Laboratories ranks #566 out of 899 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Quest Laboratories has a GF Score™ of 44/100, reflecting its overall financial health beyond just this single metric.
How does Quest Laboratories' Return-on-Tangible-Equity compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Quest Laboratories ranks #566 out of 899 companies for Return-on-Tangible-Equity. This places Quest Laboratories in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.68. Quest Laboratories' value of 12.86% is 67.4% above this benchmark. Historically, Quest Laboratories' own Return-on-Tangible-Equity has ranged from 3.21 to 51.69 over the past decade. While the company's 10-year median is 32.38 vs. the industry median of 7.68, Quest 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 7.68, 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. Quest Laboratories's current Return-on-Tangible-Equity of 12.86% is 67.4% 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 Quest Laboratories and its competitors. For the Drug Manufacturers industry, the median Return-on-Tangible-Equity is 7.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Quest Laboratories's current Return-on-Tangible-Equity is 12.86%, which is 60% below median its own 10-year median of 32.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Quest Laboratories stock overvalued right now?
Quest Laboratories (NSE:QUESTLAB) has a current Return-on-Tangible-Equity of 12.86%. The current Return-on-Tangible-Equity is 12.86%, which is 60% below median its 10-year median of 32.38 and 67.4% above the Drug Manufacturers industry median of 7.68. Quest Laboratories' overall GF Score™ is 44/100 with 8 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 Quest Laboratories (NSE:QUESTLAB), the current Return-on-Tangible-Equity is 12.86% 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.
Quest Laboratories Ltd is engaged in the business of manufacturing pharmaceutical formulations across a broad spectrum, including antibiotics, antimalarials, antispasmodics, anti-inflammatories, antiemetics, respiratory medications, diabetes treatments, antidepressants, and more. It produces various products, comprising ethical drugs, generic drugs, and over-the-counter drugs, and is also available in various forms such as tablets, liquid orals, oral dry powders, oral powders (ORS), ointments, and external liquids, among others. The company operates in a single segment of Drugs and Chemicals.
44GF Score
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