ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Sun Pharma Advanced Research Co's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹70,454 Mil.
Sun Pharma Advanced Research Co's average Total Assets over the quarter that ended in Mar. 2026 was ₹21,709 Mil. Therefore, Sun Pharma Advanced Research Co's annualized ROA % for the quarter that ended in Mar. 2026 was 324.54%.
BOM:532872'
s ROA % Range Over the Past 10 Years
Min: -93.11 Med: -58.88 Max: 164.72
Current: 164.72
During the past 13 years, Sun Pharma Advanced Research Co's highest ROA % was 164.72%. The lowest was -93.11%. And the median was -58.88%.
BOM:532872's ROA % is ranked better than 99.5% of 1005
companies
in the Drug Manufacturers industry
Industry Median: 2.72
vs BOM:532872: 164.72
Sun Pharma Advanced Research Co (BOM:532872) ROA % Explanation
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.
Sun Pharma Advanced Research Co ROA % Related Terms
Sun Pharma Advanced Research Co 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, Sun Pharma Advanced Research Co'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.
Sun Pharma Advanced Research Co ROA % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Sun Pharma Advanced Research Co's ROA % distribution charts can be found below:
* The bar in red indicates where Sun Pharma Advanced Research Co'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.
Sun Pharma Advanced Research Co (BOM:532872) has a ROA % of 324.54% 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 Sun Pharma Advanced Research Co and its competitors. According to the industry distribution chart, Sun Pharma Advanced Research Co ranks #5 out of 1005 companies in the Drug Manufacturers industry, placing it in the top 0.5%.
Is Sun Pharma Advanced Research Co's ROA % too high?
Sun Pharma Advanced Research Co's current ROA % is 324.54%. The Drug Manufacturers industry median ROA % is 2.72. Sun Pharma Advanced Research Co's value of 324.54% is 11831.6% above this industry median. Based on the distribution chart, Sun Pharma Advanced Research Co ranks #5 out of 1005 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Sun Pharma Advanced Research Co has a GF Score™ of 57/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Sun Pharma Advanced Research Co's ROA % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Sun Pharma Advanced Research Co ranks #5 out of 1005 companies for ROA %. This places Sun Pharma Advanced Research Co in the top 1% of its industry — outperforming the majority of peers. The industry median ROA % is 2.72. Sun Pharma Advanced Research Co's value of 324.54% is 11831.6% above this benchmark. 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 2.72, based on 1,005 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. Sun Pharma Advanced Research Co's current ROA % of 324.54% is 11831.6% 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 Sun Pharma Advanced Research Co and its competitors. For the Drug Manufacturers industry, the median ROA % is 2.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sun Pharma Advanced Research Co's current ROA % is 324.54%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sun Pharma Advanced Research Co stock overvalued right now?
Based on GuruFocus' analysis, Sun Pharma Advanced Research Co (BOM:532872) is currently considered Possible Value Trap. The stock's GF Value™ is ₹4,493.51, compared to a current price of ₹239.15 — trading 94.7% below its estimated fair value. The current ROA % is 324.54% and 11831.6% above the Drug Manufacturers industry median of 2.72. Sun Pharma Advanced Research Co's overall GF Score™ is 57/100 with 7 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 Sun Pharma Advanced Research Co (BOM:532872), the current ROA % is 324.54% 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 Sun Pharma Advanced Research Co (BOM:532872) Overvalued in 2026?
Based on GuruFocus' analysis, Sun Pharma Advanced Research Co stock appears to be undervalued.
The current stock price of ₹239.15 is trading 94.7% below its estimated GF Value™ of ₹4,493.51.
GuruFocus considers Sun Pharma Advanced Research Co to be Possible Value Trap.
Key valuation signals for BOM:532872:
ROA %: 324.54%
GF Value™: ₹4,493.51 vs. price of ₹239.15 (94.7% below fair value)
Industry Position: 11831.6% above the Drug Manufacturers median (#5 of 1005)
No single metric tells the full story. See the BOM:532872 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sun Pharma Advanced Research Co Business Description
Sun Pharma Advanced Research Co Ltd is an Indian specialty and generic drug manufacturing company. The company has identified pharmaceuticals research and development as its only reportable segment. The company is focused on drug discovery in focused therapy areas such as cancer and anti-inflammatory treatments. The company considers merger and acquisition investment as a potential component of its operational growth plan for expanding its research, development, manufacturing, and marketing capabilities. It derives maximum revenue from India and also has its presence in other countries.
57GF Score
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