Natco Pharma (BOM:524816) ROCE %: 6.60% (As of Mar. 2026)

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BOM:524816 Natco Pharma Ltd BOM:524816
84 GF Score
Price ₹945.75
GF Value ₹928.77
Valuation Fairly Valued
! 2 Warning Signs
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What is Natco Pharma ROCE %?

Natco Pharma BOM:524816 -2.07% 84 ROCE % is 6.60% as of Mar. 2026. GuruFocus rates BOM:524816 with a GF Score™ of 84/100 and a GF Value™ of ₹928.77 (Fairly Valued). The stock has 2 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. Natco Pharma's annualized ROCE % for the quarter that ended in Mar. 2026 was 6.60%.

Natco Pharma  (BOM:524816) 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.

Natco Pharma ROCE % Related Terms

Natco Pharma ROCE % Historical Data

* Premium members only.

The historical data trend for Natco Pharma'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.

Natco Pharma ROCE % Chart

Natco Pharma 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 4.97 18.59 30.90 34.00 17.89

Natco Pharma 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 26.85 29.92 28.72 7.82 6.60
BOM:524816
84GF Score
Natco Pharma Ltd BOM:524816
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Natco Pharma ROCE % Calculation

Natco Pharma'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 )
=15275/( ( (86308 - 9435) + (110737 - 16809) )/ 2 )
=15275/( (76873+93928)/ 2 )
=15275/85400.5
=17.89 %

Natco Pharma'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 )
=6200/( ( (0 - 0) + (110737 - 16809) )/ 1 )
=6200/( ( 0 + 93928 )/ 1 )
=6200/93928
=6.60 %

(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 6.60% mean?
Natco Pharma (BOM:524816) has a ROCE % of 6.60% as of Mar. 2026.
Is Natco Pharma's ROCE % too high?
Natco Pharma's current ROCE % is 6.60%. The Drug Manufacturers industry median ROCE % is 7.06. Natco Pharma's value of 6.60% is 6.5% below this industry median. Overall, Natco Pharma has a GF Score™ of 84/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Natco Pharma's ROCE % compare to ZTS and UTHR?
Natco Pharma's ROCE % of 6.60% can be compared against companies in the Drug Manufacturers industry. The industry median ROCE % is 7.06. Natco Pharma's value of 6.60% is 6.5% below 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 7.06, based on 962 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. Natco Pharma's current ROCE % of 6.60% is 6.5% 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 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 7.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Natco Pharma's current ROCE % is 6.60%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Natco Pharma stock overvalued right now?
Based on GuruFocus' analysis, Natco Pharma (BOM:524816) is currently considered Fairly Valued. The stock's GF Value™ is ₹928.77, compared to a current price of ₹945.75 — trading 1.8% above its estimated fair value. The current ROCE % is 6.60% and 6.5% below the Drug Manufacturers industry median of 7.06. Natco Pharma's overall GF Score™ is 84/100 with 2 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 Natco Pharma (BOM:524816), the current ROCE % is 6.60% 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 Natco Pharma (BOM:524816) Overvalued in 2026?

Based on GuruFocus' analysis, Natco Pharma stock appears to be overvalued. The current stock price of ₹945.75 is trading 1.8% above its estimated GF Value™ of ₹928.77. GuruFocus considers Natco Pharma to be Fairly Valued.

Key valuation signals for BOM:524816:

  • ROCE %: 6.60%
  • GF Value™: ₹928.77 vs. price of ₹945.75 (1.8% above fair value)
  • GF Score™: 84/100 with 2 warning signs
  • Industry Position: 6.5% below the Drug Manufacturers median

No single metric tells the full story. See the BOM:524816 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Natco Pharma Business Description

Other Exchanges NATCOPHARM:India
Address Road No. 2, NATCO House, Banjara Hills, Hyderabad, TG, IND, 500034
Natco Pharma Ltd is a drug manufacturing company. Natco aims to make specialty medicines accessible to all by manufacturing niche pharmaceutical products backed by its research and development capabilities. While the vast majority of the company's revenue is generated in India, the company looks internationally for growth opportunities. The company maintains a presence in Oncology and Hepatology treatment areas. Natco's active pharmaceutical ingredient segment APIs forms a core part of the company's business. The company operates in two different business segments: pharmaceuticals and agrochemicals. It derives maximum revenue from Pharmaceuticals Segment.
84GF Score

Get the complete analysis for BOM:524816

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

₹945.75
Price
₹928.77
GF Value