Natco PharmaNSE:NATCOPHARM -0.33%89 ROA % is 9.68% as of Mar. 2026, which is 36% below its 10-year median of 15.24. GuruFocus rates NSE:NATCOPHARM with a GF Score™ of 89/100 and a GF Value™ of ₹936.16 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,003 Drug Manufacturers companies, Natco Pharma ranks better than 91.13% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Natco Pharma's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹10,716 Mil.
Natco Pharma's average Total Assets over the quarter that ended in Mar. 2026 was ₹110,737 Mil. Therefore, Natco Pharma's annualized ROA % for the quarter that ended in Mar. 2026 was 9.68%.
The historical rank and industry rank for Natco Pharma's ROA % or its related term are showing as below:
NSE:NATCOPHARM'
s ROA % Range Over the Past 10 Years
Min: 3.43 Med: 15.24 Max: 24.27
Current: 14.12
During the past 13 years, Natco Pharma's highest ROA % was 24.27%. The lowest was 3.43%. And the median was 15.24%.
NSE:NATCOPHARM's ROA % is ranked better than 91.13% of 1003
companies
in the Drug Manufacturers industry
Industry Median: 2.72
vs NSE:NATCOPHARM: 14.12
Natco Pharma (NSE:NATCOPHARM) 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.
Natco Pharma ROA % Related Terms
Natco Pharma ROA % Historical Data
* Premium members only.
The historical data trend for Natco Pharma'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, Natco Pharma'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.
Natco Pharma ROA % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Natco Pharma's ROA % distribution charts can be found below:
* The bar in red indicates where Natco Pharma'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.
Natco Pharma (NSE:NATCOPHARM) has a ROA % of 9.68% 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 Natco Pharma and its competitors. This is 36% below median its historical median of 15.24. Over the past decade, Natco Pharma's ROA % has ranged from 3.43 to 24.27. According to the industry distribution chart, Natco Pharma ranks #89 out of 1003 companies in the Drug Manufacturers industry, placing it in the top 8.9%.
Is Natco Pharma's ROA % too high?
Natco Pharma's current ROA % of 9.68% is 36% below median its 10-year median of 15.24. Over the past 10 years, this metric has ranged from a low of 3.43 to a high of 24.27. The Drug Manufacturers industry median ROA % is 2.72. Natco Pharma's value of 9.68% is 255.9% above this industry median. Based on the distribution chart, Natco Pharma ranks #89 out of 1003 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Natco Pharma has a GF Score™ of 89/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Natco Pharma's ROA % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Natco Pharma ranks #89 out of 1003 companies for ROA %. This places Natco Pharma in the top 9% of its industry — outperforming the majority of peers. The industry median ROA % is 2.72. Natco Pharma's value of 9.68% is 255.9% above this benchmark. Historically, Natco Pharma's own ROA % has ranged from 3.43 to 24.27 over the past decade. While the company's 10-year median is 15.24 vs. the industry median of 2.72, Natco Pharma 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 2.72, based on 1,003 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. Natco Pharma's current ROA % of 9.68% is 255.9% 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 Natco Pharma 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. Natco Pharma's current ROA % is 9.68%, which is 36% below median its own 10-year median of 15.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Natco Pharma stock overvalued right now?
Based on GuruFocus' analysis, Natco Pharma (NSE:NATCOPHARM) is currently considered Fairly Valued. The stock's GF Value™ is ₹936.16, compared to a current price of ₹931.40 — trading 0.5% below its estimated fair value. The current ROA % is 9.68%, which is 36% below median its 10-year median of 15.24 and 255.9% above the Drug Manufacturers industry median of 2.72. Natco Pharma's overall GF Score™ is 89/100 with 2 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 Natco Pharma (NSE:NATCOPHARM), the current ROA % is 9.68% 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 Natco Pharma (NSE:NATCOPHARM) Overvalued in 2026?
Based on GuruFocus' analysis, Natco Pharma stock appears to be undervalued.
The current stock price of ₹931.40 is trading 0.5% below its estimated GF Value™ of ₹936.16.
GuruFocus considers Natco Pharma to be Fairly Valued.
Key valuation signals for NSE:NATCOPHARM:
ROA %: 9.68% (36% below median its 10-year median of 15.24)
GF Value™: ₹936.16 vs. price of ₹931.40 (0.5% below fair value)
Industry Position: 255.9% above the Drug Manufacturers median (#89 of 1003)
No single metric tells the full story. See the NSE:NATCOPHARM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Natco Pharma Ltd is a drug manufacturing company. Natco aims to make specialty medicines accessible to all by manufacturing niche pharmaceutical products backed by its research and development capabilities. While the vast majority of the company's revenue is generated in India, the company looks internationally for growth opportunities. The company maintains a presence in Oncology and Hepatology treatment areas. Natco's active pharmaceutical ingredient segment APIs forms a core part of the company's business. The company operates in two different business segments: pharmaceuticals and agrochemicals. It derives maximum revenue from Pharmaceuticals Segment.
89GF Score
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