Zim LaboratoriesNSE:ZIMLAB -0.72%75 Return-on-Tangible-Equity is 5.89% as of Mar. 2026, which is 34% below its 10-year median of 8.92. GuruFocus rates NSE:ZIMLAB with a GF Score™ of 75/100 and a GF Value™ of ₹103.08 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 896 Drug Manufacturers companies, Zim Laboratories ranks worse than 65.4% 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. Zim Laboratories's annualized net income for the quarter that ended in Mar. 2026 was ₹150 Mil. Zim Laboratories's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹2,540 Mil. Therefore, Zim Laboratories's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 5.89%.
The historical rank and industry rank for Zim Laboratories's Return-on-Tangible-Equity or its related term are showing as below:
NSE:ZIMLAB'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 2.36 Med: 8.92 Max: 17.42
Current: 2.54
During the past 12 years, Zim Laboratories's highest Return-on-Tangible-Equity was 17.42%. The lowest was 2.36%. And the median was 8.92%.
NSE:ZIMLAB's Return-on-Tangible-Equity is ranked worse than 65.4% of 896
companies
in the Drug Manufacturers industry
Industry Median: 7.795
vs NSE:ZIMLAB: 2.54
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.
Zim Laboratories Return-on-Tangible-Equity Related Terms
Zim Laboratories Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Zim 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:ZIMLAB vs ZTS, UTHR: Return-on-Tangible-Equity Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Zim 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.
Zim Laboratories Return-on-Tangible-Equity vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Zim Laboratories's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Zim 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 5.89% mean?
Zim Laboratories (NSE:ZIMLAB) has a Return-on-Tangible-Equity of 5.89% 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 Zim Laboratories and its competitors. This is 34% below median its historical median of 8.92. Over the past decade, Zim Laboratories' Return-on-Tangible-Equity has ranged from 2.36 to 17.42. According to the industry distribution chart, Zim Laboratories ranks #586 out of 896 companies in the Drug Manufacturers industry, placing it in the top 65.4%.
Is Zim Laboratories' Return-on-Tangible-Equity too high?
Zim Laboratories' current Return-on-Tangible-Equity of 5.89% is 34% below median its 10-year median of 8.92. Over the past 10 years, this metric has ranged from a low of 2.36 to a high of 17.42. The Drug Manufacturers industry median Return-on-Tangible-Equity is 7.80. Zim Laboratories' value of 5.89% is 24.4% below this industry median. Based on the distribution chart, Zim Laboratories ranks #586 out of 896 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Zim Laboratories has a GF Score™ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zim Laboratories' Return-on-Tangible-Equity compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Zim Laboratories ranks #586 out of 896 companies for Return-on-Tangible-Equity. This places Zim Laboratories in the lower half of its industry. The industry median Return-on-Tangible-Equity is 7.80. Zim Laboratories' value of 5.89% is 24.4% below this benchmark. Historically, Zim Laboratories' own Return-on-Tangible-Equity has ranged from 2.36 to 17.42 over the past decade. While the company's 10-year median is 8.92 vs. the industry median of 7.80, Zim Laboratories 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 7.80, 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. Zim Laboratories's current Return-on-Tangible-Equity of 5.89% is 24.4% 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 Zim 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. Zim Laboratories's current Return-on-Tangible-Equity is 5.89%, which is 34% below median its own 10-year median of 8.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zim Laboratories stock overvalued right now?
Based on GuruFocus' analysis, Zim Laboratories (NSE:ZIMLAB) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹103.08, compared to a current price of ₹124.00 — trading 20.3% above its estimated fair value. The current Return-on-Tangible-Equity is 5.89%, which is 34% below median its 10-year median of 8.92 and 24.4% below the Drug Manufacturers industry median of 7.80. Zim Laboratories' overall GF Score™ is 75/100 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 Zim Laboratories (NSE:ZIMLAB), the current Return-on-Tangible-Equity is 5.89% 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 Zim Laboratories (NSE:ZIMLAB) Overvalued in 2026?
Based on GuruFocus' analysis, Zim Laboratories stock appears to be overvalued.
The current stock price of ₹124.00 is trading 20.3% above its estimated GF Value™ of ₹103.08.
GuruFocus considers Zim Laboratories to be Modestly Overvalued.
Key valuation signals for NSE:ZIMLAB:
Return-on-Tangible-Equity: 5.89% (34% below median its 10-year median of 8.92)
GF Value™: ₹103.08 vs. price of ₹124.00 (20.3% above fair value)
Industry Position: 24.4% below the Drug Manufacturers median (#586 of 896)
No single metric tells the full story. See the NSE:ZIMLAB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zim Laboratories Ltd is engaged in the manufacturing of formulation drugs and pre formulation ingredients in India and marketing and selling these within and outside India. It is engaged in manufacturing &wholesale of pharmaceutical products, market research and research & development activities. The Group is mainly engaged in the business of pharmaceuticals. It has presence in India and Outside India. The company generates majority of revenue from India. Its products are Oral Thin Films, Pre-formulations Intermediates, Finished Formulations.
75GF Score
Get the complete analysis for NSE:ZIMLAB
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NSE:ZIMLAB has been successfully added to your 
