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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. Solara Active Pharma Sciences's annualized net income for the quarter that ended in Jun. 2026 was ₹652 Mil. Solara Active Pharma Sciences's average shareholder tangible equity for the quarter that ended in Jun. 2026 was ₹8,658 Mil. Therefore, Solara Active Pharma Sciences's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 7.54%.
The historical rank and industry rank for Solara Active Pharma Sciences's Return-on-Tangible-Equity or its related term are showing as below:
NSE:SOLARA'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -70.61 Med: -0.43 Max: 24.99
Current: -0.2
During the past 10 years, Solara Active Pharma Sciences's highest Return-on-Tangible-Equity was 24.99%. The lowest was -70.61%. And the median was -0.43%.
NSE:SOLARA's Return-on-Tangible-Equity is ranked worse than 71.33% of 900
companies
in the Drug Manufacturers industry
Industry Median: 7.925
vs NSE:SOLARA: -0.20
Solara Active Pharma Sciences (NSE:SOLARA) Return-on-Tangible-Equity Explanation
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.
Solara Active Pharma Sciences Return-on-Tangible-Equity Related Terms
Solara Active Pharma Sciences Return-on-Tangible-Equity Historical Data
* 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.
Solara Active Pharma Sciences Return-on-Tangible-Equity Chart
NSE:SOLARA vs ZTS: Return-on-Tangible-Equity Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Solara Active Pharma Sciences'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.
Solara Active Pharma Sciences Return-on-Tangible-Equity vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Solara Active Pharma Sciences's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Solara Active Pharma Sciences'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 7.54% mean?
Solara Active Pharma Sciences (NSE:SOLARA) has a Return-on-Tangible-Equity of 7.54% 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 Solara Active Pharma Sciences and its competitors. According to the industry distribution chart, Solara Active Pharma Sciences ranks #642 out of 900 companies in the Drug Manufacturers industry, placing it in the top 71.3%.
Is Solara Active Pharma Sciences' Return-on-Tangible-Equity too high?
Solara Active Pharma Sciences' current Return-on-Tangible-Equity is 7.54%. The Drug Manufacturers industry median Return-on-Tangible-Equity is 7.93. Solara Active Pharma Sciences' value of 7.54% is 4.9% below this industry median. Based on the distribution chart, Solara Active Pharma Sciences ranks #642 out of 900 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Solara Active Pharma Sciences has a GF Score™ of 69/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Solara Active Pharma Sciences' Return-on-Tangible-Equity compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Solara Active Pharma Sciences ranks #642 out of 900 companies for Return-on-Tangible-Equity. This places Solara Active Pharma Sciences in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.93. Solara Active Pharma Sciences' value of 7.54% is 4.9% below this benchmark. 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. Solara Active Pharma Sciences's current Return-on-Tangible-Equity of 7.54% is 4.9% below 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 Solara Active Pharma Sciences 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. Solara Active Pharma Sciences's current Return-on-Tangible-Equity is 7.54%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Solara Active Pharma Sciences stock overvalued right now?
Based on GuruFocus' analysis, Solara Active Pharma Sciences (NSE:SOLARA) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹564.18, compared to a current price of ₹491.95 — trading 12.8% below its estimated fair value. The current Return-on-Tangible-Equity is 7.54% and 4.9% below the Drug Manufacturers industry median of 7.93. Solara Active Pharma Sciences' overall GF Score™ is 69/100 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 Solara Active Pharma Sciences (NSE:SOLARA), the current Return-on-Tangible-Equity is 7.54% 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 Solara Active Pharma Sciences (NSE:SOLARA) Overvalued in 2026?
Based on GuruFocus' analysis, Solara Active Pharma Sciences stock appears to be undervalued.
The current stock price of ₹491.95 is trading 12.8% below its estimated GF Value™ of ₹564.18.
GuruFocus considers Solara Active Pharma Sciences to be Modestly Undervalued.
Key valuation signals for NSE:SOLARA:
Return-on-Tangible-Equity: 7.54%
GF Value™: ₹564.18 vs. price of ₹491.95 (12.8% below fair value)
Industry Position: 4.9% below the Drug Manufacturers median (#642 of 900)
No single metric tells the full story. See the NSE:SOLARA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Solara Active Pharma Sciences Business Description
Solara Active Pharma Sciences Ltd is engaged in the Active Pharmaceutical Ingredients (API) in India. It manufactures and develops APIs and offers services, including CRAMS and contract manufacturing for APIs. The company offers products and services, such as Anaesthetic, Analgesics, Antiviral, Retinoid, Anti-emetic, Antimalarial, Diuretic, Muscle relaxant, Antiallergics, Antihypertensive, Calcimimetic agent, Anti-seizure, Antigout, Cardiovascular, Anti-infective, Cough suppressant, and others. It also offers contract services, including contract development and manufacturing, and analytical services. Geographically, the company generates all of its revenue from India.
69GF Score
Get the complete analysis for NSE:SOLARA
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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