Abbott IndiaBOM:500488 +0.51%87 ROE % is 33.09% as of Mar. 2026, which is 16% above its 10-year median of 28.45. GuruFocus rates BOM:500488 with a GF Score™ of 87/100 and a GF Value™ of ₹32,313.61 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 934 Drug Manufacturers companies, Abbott India ranks better than 94.86% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Abbott India's annualized net income for the quarter that ended in Mar. 2026 was ₹15,797 Mil. Abbott India's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was ₹47,742 Mil. Therefore, Abbott India's annualized ROE % for the quarter that ended in Mar. 2026 was 33.09%.
The historical rank and industry rank for Abbott India's ROE % or its related term are showing as below:
BOM:500488'
s ROE % Range Over the Past 10 Years
Min: 21.42 Med: 28.45 Max: 35.77
Current: 35.77
During the past 13 years, Abbott India's highest ROE % was 35.77%. The lowest was 21.42%. And the median was 28.45%.
BOM:500488's ROE % is ranked better than 94.86% of 934
companies
in the Drug Manufacturers industry
Industry Median: 6.02
vs BOM:500488: 35.77
Abbott India (BOM:500488) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Abbott India ROE % Related Terms
Abbott India ROE % Historical Data
* Premium members only.
The historical data trend for Abbott India's ROE % 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.
For the Drug Manufacturers - Specialty & Generic subindustry, Abbott India's ROE %, along with its competitors' market caps and ROE % 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.
Abbott India ROE % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Abbott India's ROE % distribution charts can be found below:
* The bar in red indicates where Abbott India's ROE % falls into.
* 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Abbott India (BOM:500488) has a ROE % of 33.09% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Abbott India and its competitors. This is 16% above median its historical median of 28.45. Over the past decade, Abbott India's ROE % has ranged from 21.42 to 35.77. According to the industry distribution chart, Abbott India ranks #48 out of 934 companies in the Drug Manufacturers industry, placing it in the top 5.1%.
Is Abbott India's ROE % too high?
Abbott India's current ROE % of 33.09% is 16% above median its 10-year median of 28.45. Over the past 10 years, this metric has ranged from a low of 21.42 to a high of 35.77. The Drug Manufacturers industry median ROE % is 6.02. Abbott India's value of 33.09% is 449.7% above this industry median. Based on the distribution chart, Abbott India ranks #48 out of 934 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Abbott India has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Abbott India's ROE % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Abbott India ranks #48 out of 934 companies for ROE %. This places Abbott India in the top 5% of its industry — outperforming the majority of peers. The industry median ROE % is 6.02. Abbott India's value of 33.09% is 449.7% above this benchmark. Historically, Abbott India's own ROE % has ranged from 21.42 to 35.77 over the past decade. While the company's 10-year median is 28.45 vs. the industry median of 6.02, Abbott India 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 ROE % for a Drug Manufacturers company?
The median ROE % among Drug Manufacturers companies is 6.02, based on 934 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Abbott India's current ROE % of 33.09% is 449.7% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Abbott India and its competitors. For the Drug Manufacturers industry, the median ROE % is 6.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Abbott India's current ROE % is 33.09%, which is 16% above median its own 10-year median of 28.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Abbott India stock overvalued right now?
Based on GuruFocus' analysis, Abbott India (BOM:500488) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹32,313.61, compared to a current price of ₹25,566.95 — trading 20.9% below its estimated fair value. The current ROE % is 33.09%, which is 16% above median its 10-year median of 28.45 and 449.7% above the Drug Manufacturers industry median of 6.02. Abbott India's overall GF Score™ is 87/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Abbott India (BOM:500488), the current ROE % is 33.09% 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 Abbott India (BOM:500488) Overvalued in 2026?
Based on GuruFocus' analysis, Abbott India stock appears to be undervalued.
The current stock price of ₹25,566.95 is trading 20.9% below its estimated GF Value™ of ₹32,313.61.
GuruFocus considers Abbott India to be Modestly Undervalued.
Key valuation signals for BOM:500488:
ROE %: 33.09% (16% above median its 10-year median of 28.45)
GF Value™: ₹32,313.61 vs. price of ₹25,566.95 (20.9% below fair value)
Industry Position: 449.7% above the Drug Manufacturers median (#48 of 934)
No single metric tells the full story. See the BOM:500488 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Abbott India Ltd is a drug manufacturing company that offers products in diagnostics, medical devices, nutritionals, and branded generic pharmaceuticals. Its patient focus centers overwhelmingly on women's health and gastrointestine, gastroenterology, and hepatic care. Geographically, the majority of the company's revenue is generated in India.
87GF Score
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