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Aarti DrugsNSE:AARTIDRUGS +1.30%71 ROC (Joel Greenblatt) % is 14.78% as of Jun. 2026, which is 7% below its 10-year median of 15.86. GuruFocus rates NSE:AARTIDRUGS with a GF Score™ of 71/100 and a GF Value™ of ₹510.19 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 982 Drug Manufacturers companies, Aarti Drugs ranks better than 51.02% 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. Aarti Drugs's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2026 was 14.78%.
The historical rank and industry rank for Aarti Drugs's ROC (Joel Greenblatt) % or its related term are showing as below:
NSE:AARTIDRUGS'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 11.98 Med: 15.86 Max: 32.56
Current: 12.88
During the past 13 years, Aarti Drugs's highest ROC (Joel Greenblatt) % was 32.56%. The lowest was 11.98%. And the median was 15.86%.
NSE:AARTIDRUGS's ROC (Joel Greenblatt) % is ranked better than 51.02% of 982
companies
in the Drug Manufacturers industry
Industry Median: 11.28
vs NSE:AARTIDRUGS: 12.88
Aarti Drugs's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -16.50% per year.
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.
Aarti Drugs ROC (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Aarti Drugs's ROC (Joel Greenblatt) % 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.
NSE:AARTIDRUGS vs ZTS: ROC (Joel Greenblatt) % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Aarti Drugs'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.
Aarti Drugs ROC (Joel Greenblatt) % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Aarti Drugs's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Aarti Drugs'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 14.78% mean?
Aarti Drugs (NSE:AARTIDRUGS) has a ROC (Joel Greenblatt) % of 14.78% 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 Aarti Drugs and its competitors. This is near median its historical median of 15.86. Over the past decade, Aarti Drugs' ROC (Joel Greenblatt) % has ranged from 11.98 to 32.56. According to the industry distribution chart, Aarti Drugs ranks #481 out of 982 companies in the Drug Manufacturers industry, placing it in the top 49%.
Is Aarti Drugs' ROC (Joel Greenblatt) % too high?
Aarti Drugs' current ROC (Joel Greenblatt) % of 14.78% is near median its 10-year median of 15.86. Over the past 10 years, this metric has ranged from a low of 11.98 to a high of 32.56. The Drug Manufacturers industry median ROC (Joel Greenblatt) % is 11.28. Aarti Drugs' value of 14.78% is 31% above this industry median. Based on the distribution chart, Aarti Drugs ranks #481 out of 982 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Aarti Drugs has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Aarti Drugs' ROC (Joel Greenblatt) % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Aarti Drugs ranks #481 out of 982 companies for ROC (Joel Greenblatt) %. This puts Aarti Drugs in the upper half of its industry. The industry median ROC (Joel Greenblatt) % is 11.28. Aarti Drugs' value of 14.78% is 31% above this benchmark. Historically, Aarti Drugs' own ROC (Joel Greenblatt) % has ranged from 11.98 to 32.56 over the past decade. While the company's 10-year median is 15.86 vs. the industry median of 11.28, Aarti Drugs 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 ROC (Joel Greenblatt) % for a Drug Manufacturers company?
The median ROC (Joel Greenblatt) % among Drug Manufacturers companies is 11.28, based on 982 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. Aarti Drugs's current ROC (Joel Greenblatt) % of 14.78% is 31% 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 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 Aarti Drugs and its competitors. For the Drug Manufacturers industry, the median ROC (Joel Greenblatt) % is 11.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aarti Drugs's current ROC (Joel Greenblatt) % is 14.78%, which is near median its own 10-year median of 15.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aarti Drugs stock overvalued right now?
Based on GuruFocus' analysis, Aarti Drugs (NSE:AARTIDRUGS) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹510.19, compared to a current price of ₹416.20 — trading 18.4% below its estimated fair value. The current ROC (Joel Greenblatt) % is 14.78%, which is near median its 10-year median of 15.86 and 31% above the Drug Manufacturers industry median of 11.28. Aarti Drugs' overall GF Score™ is 71/100 with 3 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 Aarti Drugs (NSE:AARTIDRUGS), the current ROC (Joel Greenblatt) % is 14.78% 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 Aarti Drugs (NSE:AARTIDRUGS) Overvalued in 2026?
Based on GuruFocus' analysis, Aarti Drugs stock appears to be undervalued.
The current stock price of ₹416.20 is trading 18.4% below its estimated GF Value™ of ₹510.19.
GuruFocus considers Aarti Drugs to be Modestly Undervalued.
Key valuation signals for NSE:AARTIDRUGS:
ROC (Joel Greenblatt) %: 14.78% (near median its 10-year median of 15.86)
GF Value™: ₹510.19 vs. price of ₹416.20 (18.4% below fair value)
Industry Position: 31% above the Drug Manufacturers median (#481 of 982)
No single metric tells the full story. See the NSE:AARTIDRUGS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aarti Drugs Ltd is a pharmaceutical company. It offers active pharmaceutical ingredients (APIs), pharma intermediaries, specialty chemicals, and formulations in a range of therapeutic categories, such as anti-inflammatory, cardioprotectant, antibiotic, antidiabetic, and vitamins among others. The product offerings of the company comprise Aceclofenac, Celecoxib, Moxifloxacin, and others. The firm caters to both domestic and international markets and derives a majority of its revenue from its business in India.
71GF Score
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