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Aarey Drugs & PharmaceuticalsBOM:524412 +2.77%54 ROC (Joel Greenblatt) % is 5.19% as of Jun. 2026, which is 41% below its 10-year median of 8.79. GuruFocus rates BOM:524412 with a GF Score™ of 54/100 and a GF Value™ of ₹53.63 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 981 Drug Manufacturers companies, Aarey Drugs & Pharmaceuticals ranks worse than 57.08% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Aarey Drugs & Pharmaceuticals's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2026 was 5.19%.
The historical rank and industry rank for Aarey Drugs & Pharmaceuticals's ROC (Joel Greenblatt) % or its related term are showing as below:
BOM:524412'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 6.49 Med: 8.79 Max: 22.46
Current: 6.49
During the past 13 years, Aarey Drugs & Pharmaceuticals's highest ROC (Joel Greenblatt) % was 22.46%. The lowest was 6.49%. And the median was 8.79%.
BOM:524412's ROC (Joel Greenblatt) % is ranked worse than 57.08% of 981
companies
in the Drug Manufacturers industry
Industry Median: 10.44
vs BOM:524412: 6.49
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
* 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.
BOM:524412 vs ZTS: ROC (Joel Greenblatt) % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Aarey Drugs & Pharmaceuticals's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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.
Aarey Drugs & Pharmaceuticals ROC (Joel Greenblatt) % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Aarey Drugs & Pharmaceuticals's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Aarey Drugs & Pharmaceuticals's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Jun. 2026) EBIT 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.
What does a ROC (Joel Greenblatt) % of 5.19% mean?
Aarey Drugs & Pharmaceuticals (BOM:524412) has a ROC (Joel Greenblatt) % of 5.19% as of Jun. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Aarey Drugs & Pharmaceuticals and its competitors. This is 41% below median its historical median of 8.79. Over the past decade, Aarey Drugs & Pharmaceuticals' ROC (Joel Greenblatt) % has ranged from 6.49 to 22.46. According to the industry distribution chart, Aarey Drugs & Pharmaceuticals ranks #560 out of 981 companies in the Drug Manufacturers industry, placing it in the top 57.1%.
Is Aarey Drugs & Pharmaceuticals' ROC (Joel Greenblatt) % too high?
Aarey Drugs & Pharmaceuticals' current ROC (Joel Greenblatt) % of 5.19% is 41% below median its 10-year median of 8.79. Over the past 10 years, this metric has ranged from a low of 6.49 to a high of 22.46. The Drug Manufacturers industry median ROC (Joel Greenblatt) % is 10.44. Aarey Drugs & Pharmaceuticals' value of 5.19% is 50.3% below this industry median. Based on the distribution chart, Aarey Drugs & Pharmaceuticals ranks #560 out of 981 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Aarey Drugs & Pharmaceuticals has a GF Score™ of 54/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Aarey Drugs & Pharmaceuticals' ROC (Joel Greenblatt) % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Aarey Drugs & Pharmaceuticals ranks #560 out of 981 companies for ROC (Joel Greenblatt) %. This places Aarey Drugs & Pharmaceuticals in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 10.44. Aarey Drugs & Pharmaceuticals' value of 5.19% is 50.3% below this benchmark. Historically, Aarey Drugs & Pharmaceuticals' own ROC (Joel Greenblatt) % has ranged from 6.49 to 22.46 over the past decade. While the company's 10-year median is 8.79 vs. the industry median of 10.44, Aarey Drugs & Pharmaceuticals 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 ROC (Joel Greenblatt) % for a Drug Manufacturers company?
The median ROC (Joel Greenblatt) % among Drug Manufacturers companies is 10.44, based on 981 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Aarey Drugs & Pharmaceuticals's current ROC (Joel Greenblatt) % of 5.19% is 50.3% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Aarey Drugs & Pharmaceuticals and its competitors. For the Drug Manufacturers industry, the median ROC (Joel Greenblatt) % is 10.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aarey Drugs & Pharmaceuticals's current ROC (Joel Greenblatt) % is 5.19%, which is 41% below median its own 10-year median of 8.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aarey Drugs & Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Aarey Drugs & Pharmaceuticals (BOM:524412) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹53.63, compared to a current price of ₹97.66 — trading 82.1% above its estimated fair value. The current ROC (Joel Greenblatt) % is 5.19%, which is 41% below median its 10-year median of 8.79 and 50.3% below the Drug Manufacturers industry median of 10.44. Aarey Drugs & Pharmaceuticals' overall GF Score™ is 54/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Aarey Drugs & Pharmaceuticals (BOM:524412), the current ROC (Joel Greenblatt) % is 5.19% as of Jun. 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 Aarey Drugs & Pharmaceuticals (BOM:524412) Overvalued in 2026?
Based on GuruFocus' analysis, Aarey Drugs & Pharmaceuticals stock appears to be overvalued.
The current stock price of ₹97.66 is trading 82.1% above its estimated GF Value™ of ₹53.63.
GuruFocus considers Aarey Drugs & Pharmaceuticals to be Significantly Overvalued.
Key valuation signals for BOM:524412:
ROC (Joel Greenblatt) %: 5.19% (41% below median its 10-year median of 8.79)
GF Value™: ₹53.63 vs. price of ₹97.66 (82.1% above fair value)
Industry Position: 50.3% below the Drug Manufacturers median (#560 of 981)
No single metric tells the full story. See the BOM:524412 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aarey Drugs & Pharmaceuticals Ltd is engaged in bulk drug manufacturing and offers products for industrial applications. The company manufactures active pharmaceutical ingredients, intermediates, and specialty chemicals. It is also involved in the trading of industrial solvents and chemicals. The products offered by the company include N-Methyl urea, Dimethyl urea, Mefenamic acid, Metformin, Doxaphylline, and BMD among others. The company principally carries out its business operations in India.
54GF Score
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