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Zenith DrugsNSE:ZENITHDRUG -2.88%36 Return-on-Tangible-Equity is 4.65% as of Mar. 2026, which is 83% below its 10-year median of 26.87. GuruFocus rates NSE:ZENITHDRUG with a GF Score™ of 36/100. The stock has 8 warning signs investors should review. Among 899 Drug Manufacturers companies, Zenith Drugs ranks worse than 56.51% 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. Zenith Drugs's annualized net income for the quarter that ended in Mar. 2026 was ₹32 Mil. Zenith Drugs's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹691 Mil. Therefore, Zenith Drugs's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 4.65%.
The historical rank and industry rank for Zenith Drugs's Return-on-Tangible-Equity or its related term are showing as below:
NSE:ZENITHDRUG'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 5.7 Med: 26.87 Max: 33.89
Current: 5.7
During the past 6 years, Zenith Drugs's highest Return-on-Tangible-Equity was 33.89%. The lowest was 5.70%. And the median was 26.87%.
NSE:ZENITHDRUG's Return-on-Tangible-Equity is ranked worse than 56.51% of 899
companies
in the Drug Manufacturers industry
Industry Median: 7.9
vs NSE:ZENITHDRUG: 5.70
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.
Zenith Drugs Return-on-Tangible-Equity Related Terms
Zenith Drugs Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Zenith Drugs'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:ZENITHDRUG vs ZTS, UTHR: Return-on-Tangible-Equity Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Zenith Drugs'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.
Zenith Drugs Return-on-Tangible-Equity vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Zenith Drugs's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Zenith Drugs'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 two times the semi-annual (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 4.65% mean?
Zenith Drugs (NSE:ZENITHDRUG) has a Return-on-Tangible-Equity of 4.65% 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 Zenith Drugs and its competitors. This is 83% below median its historical median of 26.87. Over the past decade, Zenith Drugs' Return-on-Tangible-Equity has ranged from 5.70 to 33.89. According to the industry distribution chart, Zenith Drugs ranks #508 out of 899 companies in the Drug Manufacturers industry, placing it in the top 56.5%.
Is Zenith Drugs' Return-on-Tangible-Equity too high?
Zenith Drugs' current Return-on-Tangible-Equity of 4.65% is 83% below median its 10-year median of 26.87. Over the past 10 years, this metric has ranged from a low of 5.70 to a high of 33.89. The Drug Manufacturers industry median Return-on-Tangible-Equity is 7.90. Zenith Drugs' value of 4.65% is 41.1% below this industry median. Based on the distribution chart, Zenith Drugs ranks #508 out of 899 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Zenith Drugs has a GF Score™ of 36/100, reflecting its overall financial health beyond just this single metric.
How does Zenith Drugs' Return-on-Tangible-Equity compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Zenith Drugs ranks #508 out of 899 companies for Return-on-Tangible-Equity. This places Zenith Drugs in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.90. Zenith Drugs' value of 4.65% is 41.1% below this benchmark. Historically, Zenith Drugs' own Return-on-Tangible-Equity has ranged from 5.70 to 33.89 over the past decade. While the company's 10-year median is 26.87 vs. the industry median of 7.90, Zenith Drugs has consistently been below 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 7.90, 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. Zenith Drugs's current Return-on-Tangible-Equity of 4.65% is 41.1% 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 Zenith Drugs and its competitors. For the Drug Manufacturers industry, the median Return-on-Tangible-Equity is 7.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zenith Drugs's current Return-on-Tangible-Equity is 4.65%, which is 83% below median its own 10-year median of 26.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zenith Drugs stock overvalued right now?
Zenith Drugs (NSE:ZENITHDRUG) has a current Return-on-Tangible-Equity of 4.65%. The current Return-on-Tangible-Equity is 4.65%, which is 83% below median its 10-year median of 26.87 and 41.1% below the Drug Manufacturers industry median of 7.90. Zenith Drugs' overall GF Score™ is 36/100 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 Zenith Drugs (NSE:ZENITHDRUG), the current Return-on-Tangible-Equity is 4.65% 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.
Zenith Drugs Ltd is a pharmaceutical manufacturing and trading company. It offers a wide range of formulations in various forms such as ORS Powder, Liquid Orals, Ointments, Liquid Externals, Creams, Gels, Capsules, and Tablets. It is also into Generic Medicines.
36GF Score
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