Denis Chem LabBOM:537536 +4.36%79 ROA % is 1.28% as of Mar. 2026, which is 80% below its 10-year median of 6.39. GuruFocus rates BOM:537536 with a GF Score™ of 79/100 and a GF Value™ of ₹118.39 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 1,005 Drug Manufacturers companies, Denis Chem Lab ranks better than 71.94% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Denis Chem Lab's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹16 Mil.
Denis Chem Lab's average Total Assets over the quarter that ended in Mar. 2026 was ₹1,248 Mil. Therefore, Denis Chem Lab's annualized ROA % for the quarter that ended in Mar. 2026 was 1.28%.
The historical rank and industry rank for Denis Chem Lab's ROA % or its related term are showing as below:
BOM:537536'
s ROA % Range Over the Past 10 Years
Min: 1.38 Med: 6.39 Max: 10.69
Current: 6.99
During the past 13 years, Denis Chem Lab's highest ROA % was 10.69%. The lowest was 1.38%. And the median was 6.39%.
BOM:537536's ROA % is ranked better than 71.94% of 1005
companies
in the Drug Manufacturers industry
Industry Median: 2.74
vs BOM:537536: 6.99
Denis Chem Lab (BOM:537536) 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.
Denis Chem Lab ROA % Related Terms
Denis Chem Lab ROA % Historical Data
* Premium members only.
The historical data trend for Denis Chem Lab's ROA % 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.
For the Drug Manufacturers - Specialty & Generic subindustry, Denis Chem Lab'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.
Denis Chem Lab ROA % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Denis Chem Lab's ROA % distribution charts can be found below:
* The bar in red indicates where Denis Chem Lab'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.
Denis Chem Lab (BOM:537536) has a ROA % of 1.28% 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 Denis Chem Lab and its competitors. This is 80% below median its historical median of 6.39. Over the past decade, Denis Chem Lab's ROA % has ranged from 1.38 to 10.69. According to the industry distribution chart, Denis Chem Lab ranks #282 out of 1005 companies in the Drug Manufacturers industry, placing it in the top 28.1%.
Is Denis Chem Lab's ROA % too high?
Denis Chem Lab's current ROA % of 1.28% is 80% below median its 10-year median of 6.39. Over the past 10 years, this metric has ranged from a low of 1.38 to a high of 10.69. The Drug Manufacturers industry median ROA % is 2.74. Denis Chem Lab's value of 1.28% is 53.3% below this industry median. Based on the distribution chart, Denis Chem Lab ranks #282 out of 1005 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Denis Chem Lab has a GF Score™ of 79/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Denis Chem Lab's ROA % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Denis Chem Lab ranks #282 out of 1005 companies for ROA %. This puts Denis Chem Lab in the upper half of its industry. The industry median ROA % is 2.74. Denis Chem Lab's value of 1.28% is 53.3% below this benchmark. Historically, Denis Chem Lab's own ROA % has ranged from 1.38 to 10.69 over the past decade. While the company's 10-year median is 6.39 vs. the industry median of 2.74, Denis Chem Lab 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 ROA % for a Drug Manufacturers company?
The median ROA % among Drug Manufacturers companies is 2.74, 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. Denis Chem Lab's current ROA % of 1.28% is 53.3% 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 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 Denis Chem Lab and its competitors. For the Drug Manufacturers industry, the median ROA % is 2.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Denis Chem Lab's current ROA % is 1.28%, which is 80% below median its own 10-year median of 6.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Denis Chem Lab stock overvalued right now?
Based on GuruFocus' analysis, Denis Chem Lab (BOM:537536) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹118.39, compared to a current price of ₹76.86 — trading 35.1% below its estimated fair value. The current ROA % is 1.28%, which is 80% below median its 10-year median of 6.39 and 53.3% below the Drug Manufacturers industry median of 2.74. Denis Chem Lab's overall GF Score™ is 79/100 with 3 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 Denis Chem Lab (BOM:537536), the current ROA % is 1.28% 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 Denis Chem Lab (BOM:537536) Overvalued in 2026?
Based on GuruFocus' analysis, Denis Chem Lab stock appears to be undervalued.
The current stock price of ₹76.86 is trading 35.1% below its estimated GF Value™ of ₹118.39.
GuruFocus considers Denis Chem Lab to be Significantly Undervalued.
Key valuation signals for BOM:537536:
ROA %: 1.28% (80% below median its 10-year median of 6.39)
GF Value™: ₹118.39 vs. price of ₹76.86 (35.1% below fair value)
Industry Position: 53.3% below the Drug Manufacturers median (#282 of 1005)
No single metric tells the full story. See the BOM:537536 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Denis Chem Lab Ltd is a pharmaceutical company involved in the manufacturing of pharmaceutical products. The company offers sterile intravenous injectables for human and veterinary use for different therapeutic areas. Its product portfolio includes antibiotic injections, diuretic injections, parenteral amino acid injections, plasma volume expanders, anti-pyretic Inj. irrigation solutions and dialysis solutions. The company has only one reportable segment which is Manufacturing, and Sales of Transfusion Solution in Bottles It generates its revenues through the sale of transfusion solution in bottles.
79GF Score
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