Zenith DrugsNSE:ZENITHDRUG +5.38%45 ROA % is 1.82% as of Mar. 2026, which is 68% below its 10-year median of 5.66. GuruFocus rates NSE:ZENITHDRUG with a GF Score™ of 45/100. The stock has 6 warning signs investors should review. Among 1,005 Drug Manufacturers companies, Zenith Drugs ranks worse than 52.54% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Zenith Drugs's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹32 Mil.
Zenith Drugs's average Total Assets over the quarter that ended in Mar. 2026 was ₹1,764 Mil. Therefore, Zenith Drugs's annualized ROA % for the quarter that ended in Mar. 2026 was 1.82%.
The historical rank and industry rank for Zenith Drugs's ROA % or its related term are showing as below:
NSE:ZENITHDRUG'
s ROA % Range Over the Past 10 Years
Min: 2.26 Med: 5.66 Max: 8.22
Current: 2.3
During the past 6 years, Zenith Drugs's highest ROA % was 8.22%. The lowest was 2.26%. And the median was 5.66%.
NSE:ZENITHDRUG's ROA % is ranked worse than 52.54% of 1005
companies
in the Drug Manufacturers industry
Industry Median: 2.74
vs NSE:ZENITHDRUG: 2.30
Zenith Drugs (NSE:ZENITHDRUG) 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 two times the semi-annual (Mar. 2026) net income data. The Revenue data used here is two times the semi-annual (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.
Zenith Drugs ROA % Related Terms
Zenith Drugs ROA % Historical Data
* Premium members only.
The historical data trend for Zenith Drugs'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, Zenith Drugs'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.
Zenith Drugs ROA % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Zenith Drugs's ROA % distribution charts can be found below:
* The bar in red indicates where Zenith Drugs'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 two times the semi-annual (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Zenith Drugs (NSE:ZENITHDRUG) has a ROA % of 1.82% 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 Zenith Drugs and its competitors. This is 68% below median its historical median of 5.66. Over the past decade, Zenith Drugs' ROA % has ranged from 2.26 to 8.22. According to the industry distribution chart, Zenith Drugs ranks #528 out of 1005 companies in the Drug Manufacturers industry, placing it in the top 52.5%.
Is Zenith Drugs' ROA % too high?
Zenith Drugs' current ROA % of 1.82% is 68% below median its 10-year median of 5.66. Over the past 10 years, this metric has ranged from a low of 2.26 to a high of 8.22. The Drug Manufacturers industry median ROA % is 2.74. Zenith Drugs' value of 1.82% is 33.6% below this industry median. Based on the distribution chart, Zenith Drugs ranks #528 out of 1005 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Zenith Drugs has a GF Score™ of 45/100, reflecting its overall financial health beyond just this single metric.
How does Zenith Drugs' ROA % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Zenith Drugs ranks #528 out of 1005 companies for ROA %. This places Zenith Drugs in the lower half of its industry. The industry median ROA % is 2.74. Zenith Drugs' value of 1.82% is 33.6% below this benchmark. Historically, Zenith Drugs' own ROA % has ranged from 2.26 to 8.22 over the past decade. While the company's 10-year median is 5.66 vs. the industry median of 2.74, Zenith Drugs 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. Zenith Drugs's current ROA % of 1.82% is 33.6% 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 Zenith Drugs 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. Zenith Drugs's current ROA % is 1.82%, which is 68% below median its own 10-year median of 5.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zenith Drugs stock overvalued right now?
Zenith Drugs (NSE:ZENITHDRUG) has a current ROA % of 1.82%. The current ROA % is 1.82%, which is 68% below median its 10-year median of 5.66 and 33.6% below the Drug Manufacturers industry median of 2.74. Zenith Drugs' overall GF Score™ is 45/100 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 Zenith Drugs (NSE:ZENITHDRUG), the current ROA % is 1.82% 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.
Zenith Drugs Ltd is a pharmaceutical manufacturing and trading company. It offers a wide range of formulations in various forms such as ORS Powder, Liquid Orals, Ointments, Liquid Externals, Creams, Gels, Capsules, and Tablets. It is also into Generic Medicines.
45GF Score
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