Zenith Drugs (NSE:ZENITHDRUG) ROCE %: 11.67% (As of Sep. 2025)


NSE:ZENITHDRUG Zenith Drugs Ltd NSE:ZENITHDRUG
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What is Zenith Drugs ROCE %?

Zenith Drugs NSE:ZENITHDRUG -0.11% 14 ROCE % is 11.67% as of Sep. 2025. GuruFocus rates NSE:ZENITHDRUG with a GF Score™ of 14/100. The stock has 6 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. Zenith Drugs's annualized ROCE % for the quarter that ended in Sep. 2025 was 11.67%.

Zenith Drugs  (NSE:ZENITHDRUG) 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.

Zenith Drugs ROCE % Related Terms

Zenith Drugs ROCE % Historical Data

* Premium members only.

The historical data trend for Zenith Drugs'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.

Zenith Drugs ROCE % Chart

Zenith Drugs Annual Data
Trend Mar21 Mar22 Mar23 Mar24 Mar25
ROCE %
36.24 32.93 32.33 31.74 15.03

Zenith Drugs Semi-Annual Data
Mar21 Mar22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25
ROCE % Get a 7-Day Free Trial 61.20 24.66 19.86 10.91 11.67
NSE:ZENITHDRUG
14GF Score
Zenith Drugs Ltd NSE:ZENITHDRUG
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Zenith Drugs ROCE % Calculation

Zenith Drugs's annualized ROCE % for the fiscal year that ended in Mar. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Mar. 2025 )  (A: Mar. 2024 )(A: Mar. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Mar. 2025 )  (A: Mar. 2024 )(A: Mar. 2025 )
=114.436/( ( (1341.716 - 640.911) + (1614.772 - 793.024) )/ 2 )
=114.436/( (700.805+821.748)/ 2 )
=114.436/761.2765
=15.03 %

Zenith Drugs's ROCE % of for the quarter that ended in Sep. 2025 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Sep. 2025 )  (Q: Mar. 2025 )(Q: Sep. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Sep. 2025 )  (Q: Mar. 2025 )(Q: Sep. 2025 )
=97.402/( ( (1614.772 - 793.024) + (1652.43 - 804.575) )/ 2 )
=97.402/( ( 821.748 + 847.855 )/ 2 )
=97.402/834.8015
=11.67 %

(1) Note: The EBIT data used here is two times the semi-annual (Sep. 2025) 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 11.67% mean?
Zenith Drugs (NSE:ZENITHDRUG) has a ROCE % of 11.67% as of Sep. 2025.
Is Zenith Drugs' ROCE % too high?
Zenith Drugs' current ROCE % is 11.67%. The Drug Manufacturers industry median ROCE % is 7.03. Zenith Drugs' value of 11.67% is 66% above this industry median. Overall, Zenith Drugs has a GF Score™ of 14/100, reflecting its overall financial health beyond just this single metric.
How does Zenith Drugs' ROCE % compare to ZTS and UTHR?
Zenith Drugs' ROCE % of 11.67% can be compared against companies in the Drug Manufacturers industry. The industry median ROCE % is 7.03. Zenith Drugs' value of 11.67% is 66% 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 956 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. Zenith Drugs's current ROCE % of 11.67% is 66% 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. Zenith Drugs's current ROCE % is 11.67%. 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 ROCE % of 11.67%. The current ROCE % is 11.67% and 66% above the Drug Manufacturers industry median of 7.03. Zenith Drugs' overall GF Score™ is 14/100 with 6 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 Zenith Drugs (NSE:ZENITHDRUG), the current ROCE % is 11.67% as of Sep. 2025. 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 Business Description

Address K. No. 72/5, Village Muradpura, Depalpur, Indore, MP, IND, 453001
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.
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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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