Novartis India (BOM:500672) ROCE %: 14.50% (As of Mar. 2026)


BOM:500672 Novartis India Ltd BOM:500672
59 GF Score
Price ₹1,452.70
GF Value ₹927.99
Valuation Significantly Overvalued
! 7 Warning Signs
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What is Novartis India ROCE %?

Novartis India BOM:500672 +0.39% 59 ROCE % is 14.50% as of Mar. 2026. GuruFocus rates BOM:500672 with a GF Score™ of 59/100 and a GF Value™ of ₹927.99 (Significantly Overvalued). The stock has 7 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Novartis India's annualized ROCE % for the quarter that ended in Mar. 2026 was 14.50%.

Novartis India  (BOM:500672) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Novartis India ROCE % Related Terms

Novartis India ROCE % Historical Data

* Premium members only.

The historical data trend for Novartis India's ROCE % 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.

Novartis India ROCE % Chart

Novartis India Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.13 14.97 15.63 16.68 15.98

Novartis India Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROCE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 16.88 18.53 16.49 15.42 14.50
BOM:500672
59GF Score
Novartis India Ltd BOM:500672
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Novartis India ROCE % Calculation

Novartis India's annualized ROCE % for the fiscal year that ended in Mar. 2026 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Mar. 2026 )  (A: Mar. 2025 )(A: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Mar. 2026 )  (A: Mar. 2025 )(A: Mar. 2026 )
=1309.2/( ( (9478.1 - 1420.5) + (9782.7 - 1449.7) )/ 2 )
=1309.2/( (8057.6+8333)/ 2 )
=1309.2/8195.3
=15.98 %

Novartis India's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2026 )  (Q: Dec. 2025 )(Q: Mar. 2026 )
=1208.4/( ( (0 - 0) + (9782.7 - 1449.7) )/ 1 )
=1208.4/( ( 0 + 8333 )/ 1 )
=1208.4/8333
=14.50 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of 14.50% mean?
Novartis India (BOM:500672) has a ROCE % of 14.50% as of Mar. 2026.
Is Novartis India's ROCE % too high?
Novartis India's current ROCE % is 14.50%. The Drug Manufacturers industry median ROCE % is 7.03. Novartis India's value of 14.50% is 106.3% above this industry median. Overall, Novartis India has a GF Score™ of 59/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Novartis India's ROCE % compare to ZTS and UTHR?
Novartis India's ROCE % of 14.50% can be compared against companies in the Drug Manufacturers industry. The industry median ROCE % is 7.03. Novartis India's value of 14.50% is 106.3% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Drug Manufacturers company?
The median ROCE % among Drug Manufacturers companies is 7.03, based on 957 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Novartis India's current ROCE % of 14.50% is 106.3% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Drug Manufacturers industry, the median ROCE % is 7.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Novartis India's current ROCE % is 14.50%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Novartis India stock overvalued right now?
Based on GuruFocus' analysis, Novartis India (BOM:500672) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹927.99, compared to a current price of ₹1,452.70 — trading 56.5% above its estimated fair value. The current ROCE % is 14.50% and 106.3% above the Drug Manufacturers industry median of 7.03. Novartis India's overall GF Score™ is 59/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Novartis India (BOM:500672), the current ROCE % is 14.50% 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 Novartis India (BOM:500672) Overvalued in 2026?

Based on GuruFocus' analysis, Novartis India stock appears to be overvalued. The current stock price of ₹1,452.70 is trading 56.5% above its estimated GF Value™ of ₹927.99. GuruFocus considers Novartis India to be Significantly Overvalued.

Key valuation signals for BOM:500672:

  • ROCE %: 14.50%
  • GF Value™: ₹927.99 vs. price of ₹1,452.70 (56.5% above fair value)
  • GF Score™: 59/100 with 7 warning signs
  • Industry Position: 106.3% above the Drug Manufacturers median

No single metric tells the full story. See the BOM:500672 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Novartis India Business Description

Other Exchanges NOVARTIND:India
Address Inspire BKC, Part of 601 & 701, Bandra Kurla Complex, Bandra (East), Mumbai, MH, IND, 400 051
Novartis India Ltd is an Indian-based pharmaceutical company. The company is engaged in the trading of Drugs and Pharmaceuticals. It derives revenue from operations in India. The company operates in a single business segment, namely Pharmaceutical Business. Its Pharmaceutical business focuses on Bone and Pain, Transplantation Immunology, and Neurosciences.
59GF Score

Get the complete analysis for BOM:500672

ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹1,452.70
Price
₹927.99
GF Value