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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. J.B. Chemicals & Pharmaceuticals's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹4,055 Mil.
J.B. Chemicals & Pharmaceuticals's average Total Assets over the quarter that ended in Mar. 2026 was ₹49,686 Mil. Therefore, J.B. Chemicals & Pharmaceuticals's annualized ROA % for the quarter that ended in Mar. 2026 was 8.16%.
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
J.B. Chemicals & Pharmaceuticals ROA % Related Terms
J.B. Chemicals & Pharmaceuticals ROA % 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.
For the Drug Manufacturers - Specialty & Generic subindustry, J.B. Chemicals & Pharmaceuticals's ROA %, along with its competitors' market caps and ROA % 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.
J.B. Chemicals & Pharmaceuticals ROA % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, J.B. Chemicals & Pharmaceuticals's ROA % distribution charts can be found below:
* The bar in red indicates where J.B. Chemicals & Pharmaceuticals's ROA % 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 ROA %, the net income of the last fiscal year and the average total assets 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.
ROA % is displayed in the 30-year financial page.
J.B. Chemicals & Pharmaceuticals (BOM:506943) has a ROA % of 8.16% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on J.B. Chemicals & Pharmaceuticals and its competitors. This is 45% below median its historical median of 14.85. Over the past decade, J.B. Chemicals & Pharmaceuticals' ROA % has ranged from 8.05 to 22.07. According to the industry distribution chart, J.B. Chemicals & Pharmaceuticals ranks #80 out of 1008 companies in the Drug Manufacturers industry, placing it in the top 7.9%.
Is J.B. Chemicals & Pharmaceuticals' ROA % too high?
J.B. Chemicals & Pharmaceuticals' current ROA % of 8.16% is 45% below median its 10-year median of 14.85. Over the past 10 years, this metric has ranged from a low of 8.05 to a high of 22.07. The Drug Manufacturers industry median ROA % is 2.71. J.B. Chemicals & Pharmaceuticals' value of 8.16% is 201.7% above this industry median. Based on the distribution chart, J.B. Chemicals & Pharmaceuticals ranks #80 out of 1008 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, J.B. Chemicals & Pharmaceuticals has a GF Score™ of 85/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does J.B. Chemicals & Pharmaceuticals' ROA % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, J.B. Chemicals & Pharmaceuticals ranks #80 out of 1008 companies for ROA %. This places J.B. Chemicals & Pharmaceuticals in the top 8% of its industry — outperforming the majority of peers. The industry median ROA % is 2.71. J.B. Chemicals & Pharmaceuticals' value of 8.16% is 201.7% above this benchmark. Historically, J.B. Chemicals & Pharmaceuticals' own ROA % has ranged from 8.05 to 22.07 over the past decade. While the company's 10-year median is 14.85 vs. the industry median of 2.71, J.B. Chemicals & Pharmaceuticals 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 ROA % for a Drug Manufacturers company?
The median ROA % among Drug Manufacturers companies is 2.71, based on 1,008 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. J.B. Chemicals & Pharmaceuticals's current ROA % of 8.16% is 201.7% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on J.B. Chemicals & Pharmaceuticals and its competitors. For the Drug Manufacturers industry, the median ROA % is 2.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. J.B. Chemicals & Pharmaceuticals's current ROA % is 8.16%, which is 45% below median its own 10-year median of 14.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is J.B. Chemicals & Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, J.B. Chemicals & Pharmaceuticals (BOM:506943) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹1,950.89, compared to a current price of ₹2,412.25 — trading 23.6% above its estimated fair value. The current ROA % is 8.16%, which is 45% below median its 10-year median of 14.85 and 201.7% above the Drug Manufacturers industry median of 2.71. J.B. Chemicals & Pharmaceuticals' overall GF Score™ is 85/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For J.B. Chemicals & Pharmaceuticals (BOM:506943), the current ROA % is 8.16% 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 J.B. Chemicals & Pharmaceuticals (BOM:506943) Overvalued in 2026?
Based on GuruFocus' analysis, J.B. Chemicals & Pharmaceuticals stock appears to be overvalued.
The current stock price of ₹2,412.25 is trading 23.6% above its estimated GF Value™ of ₹1,950.89.
GuruFocus considers J.B. Chemicals & Pharmaceuticals to be Modestly Overvalued.
Key valuation signals for BOM:506943:
ROA %: 8.16% (45% below median its 10-year median of 14.85)
GF Value™: ₹1,950.89 vs. price of ₹2,412.25 (23.6% above fair value)
Industry Position: 201.7% above the Drug Manufacturers median (#80 of 1008)
No single metric tells the full story. See the BOM:506943 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
J.B. Chemicals & Pharmaceuticals Business Description
J.B. Chemicals & Pharmaceuticals Ltd is an India-based pharmaceutical company. It is engaged in the business of manufacturing and marketing of diverse range of pharmaceutical formulations, herbal remedies and Active Pharmaceutical Ingredients (APIs). The company's products include various pharmaceutical dosage forms like tablets, capsules, lozenges, syrups and injectables. It has only one reportable business segment, i.e., Pharmaceuticals. The Company derives revenue from the manufacturing and marketing of pharmaceutical products. The company sells its products in India and also exports them to other international countries. The maximum revenue is generated from India.
85GF Score
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