Kwality PharmaceuticalsBOM:539997 -3.96%65 ROA % is 17.09% as of Mar. 2026, which is 136% above its 10-year median of 7.24. GuruFocus rates BOM:539997 with a GF Score™ of 65/100 and a GF Value™ of ₹1,160.16 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,005 Drug Manufacturers companies, Kwality Pharmaceuticals ranks better than 89.75% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Kwality Pharmaceuticals's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹1,012 Mil.
Kwality Pharmaceuticals's average Total Assets over the quarter that ended in Mar. 2026 was ₹5,922 Mil. Therefore, Kwality Pharmaceuticals's annualized ROA % for the quarter that ended in Mar. 2026 was 17.09%.
The historical rank and industry rank for Kwality Pharmaceuticals's ROA % or its related term are showing as below:
BOM:539997'
s ROA % Range Over the Past 10 Years
Min: 5.44 Med: 7.24 Max: 47.35
Current: 13.32
During the past 13 years, Kwality Pharmaceuticals's highest ROA % was 47.35%. The lowest was 5.44%. And the median was 7.24%.
BOM:539997's ROA % is ranked better than 89.75% of 1005
companies
in the Drug Manufacturers industry
Industry Median: 2.74
vs BOM:539997: 13.32
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.
* 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, Kwality 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.
Kwality Pharmaceuticals ROA % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Kwality Pharmaceuticals's ROA % distribution charts can be found below:
* The bar in red indicates where Kwality 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.
Kwality Pharmaceuticals (BOM:539997) has a ROA % of 17.09% 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 Kwality Pharmaceuticals and its competitors. This is 136% above median its historical median of 7.24. Over the past decade, Kwality Pharmaceuticals' ROA % has ranged from 5.44 to 47.35. According to the industry distribution chart, Kwality Pharmaceuticals ranks #103 out of 1005 companies in the Drug Manufacturers industry, placing it in the top 10.2%.
Is Kwality Pharmaceuticals' ROA % too high?
Kwality Pharmaceuticals' current ROA % of 17.09% is 136% above median its 10-year median of 7.24. Over the past 10 years, this metric has ranged from a low of 5.44 to a high of 47.35. The Drug Manufacturers industry median ROA % is 2.74. Kwality Pharmaceuticals' value of 17.09% is 523.7% above this industry median. Based on the distribution chart, Kwality Pharmaceuticals ranks #103 out of 1005 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Kwality Pharmaceuticals has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kwality Pharmaceuticals' ROA % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Kwality Pharmaceuticals ranks #103 out of 1005 companies for ROA %. This places Kwality Pharmaceuticals in the top 10% of its industry — outperforming the majority of peers. The industry median ROA % is 2.74. Kwality Pharmaceuticals' value of 17.09% is 523.7% above this benchmark. Historically, Kwality Pharmaceuticals' own ROA % has ranged from 5.44 to 47.35 over the past decade. While the company's 10-year median is 7.24 vs. the industry median of 2.74, Kwality 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 2.74, 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. Kwality Pharmaceuticals's current ROA % of 17.09% is 523.7% 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 Kwality Pharmaceuticals 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. Kwality Pharmaceuticals's current ROA % is 17.09%, which is 136% above median its own 10-year median of 7.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kwality Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Kwality Pharmaceuticals (BOM:539997) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹1,160.16, compared to a current price of ₹2,548.05 — trading 119.6% above its estimated fair value. The current ROA % is 17.09%, which is 136% above median its 10-year median of 7.24 and 523.7% above the Drug Manufacturers industry median of 2.74. Kwality Pharmaceuticals' overall GF Score™ is 65/100 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 Kwality Pharmaceuticals (BOM:539997), the current ROA % is 17.09% 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 Kwality Pharmaceuticals (BOM:539997) Overvalued in 2026?
Based on GuruFocus' analysis, Kwality Pharmaceuticals stock appears to be overvalued.
The current stock price of ₹2,548.05 is trading 119.6% above its estimated GF Value™ of ₹1,160.16.
GuruFocus considers Kwality Pharmaceuticals to be Significantly Overvalued.
Key valuation signals for BOM:539997:
ROA %: 17.09% (136% above median its 10-year median of 7.24)
GF Value™: ₹1,160.16 vs. price of ₹2,548.05 (119.6% above fair value)
Industry Position: 523.7% above the Drug Manufacturers median (#103 of 1005)
No single metric tells the full story. See the BOM:539997 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kwality Pharmaceuticals Ltd is an India-based pharmaceutical company. It is principally engaged in manufacturing finished pharmaceutical formulations in a dosage form. The company manufactures and exports pharmaceutical formulations in liquid orals, dry syrups, tablets, capsules, sterile powder for injections, and small-volume injectables.
65GF Score
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