Par Drugs and ChemicalsNSE:PAR -1.80%78 ROA % is 2.64% as of Mar. 2026, which is 76% below its 10-year median of 11.22. GuruFocus rates NSE:PAR with a GF Score™ of 78/100 and a GF Value™ of ₹207.62 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 1,003 Drug Manufacturers companies, Par Drugs and Chemicals ranks better than 84.45% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Par Drugs and Chemicals's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹34 Mil.
Par Drugs and Chemicals's average Total Assets over the quarter that ended in Mar. 2026 was ₹1,292 Mil. Therefore, Par Drugs and Chemicals's annualized ROA % for the quarter that ended in Mar. 2026 was 2.64%.
The historical rank and industry rank for Par Drugs and Chemicals's ROA % or its related term are showing as below:
NSE:PAR'
s ROA % Range Over the Past 10 Years
Min: 2.72 Med: 11.22 Max: 17.01
Current: 10.46
During the past 10 years, Par Drugs and Chemicals's highest ROA % was 17.01%. The lowest was 2.72%. And the median was 11.22%.
NSE:PAR's ROA % is ranked better than 84.45% of 1003
companies
in the Drug Manufacturers industry
Industry Median: 2.69
vs NSE:PAR: 10.46
Par Drugs and Chemicals (NSE:PAR) 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.
* 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, Par Drugs and Chemicals'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.
Par Drugs and Chemicals ROA % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Par Drugs and Chemicals's ROA % distribution charts can be found below:
* The bar in red indicates where Par Drugs and Chemicals'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.
Par Drugs and Chemicals (NSE:PAR) has a ROA % of 2.64% 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 Par Drugs and Chemicals and its competitors. This is 76% below median its historical median of 11.22. Over the past decade, Par Drugs and Chemicals' ROA % has ranged from 2.72 to 17.01. According to the industry distribution chart, Par Drugs and Chemicals ranks #156 out of 1003 companies in the Drug Manufacturers industry, placing it in the top 15.6%.
Is Par Drugs and Chemicals' ROA % too high?
Par Drugs and Chemicals' current ROA % of 2.64% is 76% below median its 10-year median of 11.22. Over the past 10 years, this metric has ranged from a low of 2.72 to a high of 17.01. The Drug Manufacturers industry median ROA % is 2.69. Par Drugs and Chemicals' value of 2.64% is 1.9% below this industry median. Based on the distribution chart, Par Drugs and Chemicals ranks #156 out of 1003 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Par Drugs and Chemicals has a GF Score™ of 78/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Par Drugs and Chemicals' ROA % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Par Drugs and Chemicals ranks #156 out of 1003 companies for ROA %. This places Par Drugs and Chemicals in the top 16% of its industry — outperforming the majority of peers. The industry median ROA % is 2.69. Par Drugs and Chemicals' value of 2.64% is 1.9% below this benchmark. Historically, Par Drugs and Chemicals' own ROA % has ranged from 2.72 to 17.01 over the past decade. While the company's 10-year median is 11.22 vs. the industry median of 2.69, Par Drugs and Chemicals 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 2.69, 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. Par Drugs and Chemicals's current ROA % of 2.64% is 1.9% 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 Par Drugs and Chemicals and its competitors. For the Drug Manufacturers industry, the median ROA % is 2.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Par Drugs and Chemicals's current ROA % is 2.64%, which is 76% below median its own 10-year median of 11.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Par Drugs and Chemicals stock overvalued right now?
Based on GuruFocus' analysis, Par Drugs and Chemicals (NSE:PAR) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹207.62, compared to a current price of ₹91.00 — trading 56.2% below its estimated fair value. The current ROA % is 2.64%, which is 76% below median its 10-year median of 11.22 and 1.9% below the Drug Manufacturers industry median of 2.69. Par Drugs and Chemicals' overall GF Score™ is 78/100 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 Par Drugs and Chemicals (NSE:PAR), the current ROA % is 2.64% 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 Par Drugs and Chemicals (NSE:PAR) Overvalued in 2026?
Based on GuruFocus' analysis, Par Drugs and Chemicals stock appears to be undervalued.
The current stock price of ₹91.00 is trading 56.2% below its estimated GF Value™ of ₹207.62.
GuruFocus considers Par Drugs and Chemicals to be Significantly Undervalued.
Key valuation signals for NSE:PAR:
ROA %: 2.64% (76% below median its 10-year median of 11.22)
GF Value™: ₹207.62 vs. price of ₹91.00 (56.2% below fair value)
Industry Position: 1.9% below the Drug Manufacturers median (#156 of 1003)
No single metric tells the full story. See the NSE:PAR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Par Drugs and Chemicals Ltd manufactures active Pharmaceutical Ingredients (APIs) and fine chemicals, serving domestic and international markets. Specializing in essential magnesium-based compounds and other specialty chemicals such as Magnesium Hydroxide, Magnesium Trisilicate, Magnesium Carbonate, various grades of Magnesium Oxide, Dried Aluminum Hydroxide Gel, and Sucralfate USP, the Company produces high-quality bulk drugs used in the formulation of finished pharmaceutical products like tablets, capsules, and liquids. Committed to maintaining stringent quality standards and utilizing manufacturing processes, the Company plays a vital role in supplying reliable ingredients that ensure the safety, efficacy, and stability of pharmaceutical formulations internationally.
78GF Score
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