Aurobindo PharmaBOM:524804 +3.85%85 ROE % is 9.73% as of Mar. 2026, which is 35% below its 10-year median of 14.95. GuruFocus rates BOM:524804 with a GF Score™ of 85/100 and a GF Value™ of ₹1,325.78 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 935 Drug Manufacturers companies, Aurobindo Pharma ranks better than 64.49% on this metric.
The historical rank and industry rank for Aurobindo Pharma's ROE % or its related term are showing as below:
BOM:524804'
s ROE % Range Over the Past 10 Years
Min: 7.5 Med: 14.95 Max: 28.44
Current: 9.96
During the past 13 years, Aurobindo Pharma's highest ROE % was 28.44%. The lowest was 7.50%. And the median was 14.95%.
BOM:524804's ROE % is ranked better than 64.49% of 935
companies
in the Drug Manufacturers industry
Industry Median: 6
vs BOM:524804: 9.96
Aurobindo Pharma (BOM:524804) 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.
Aurobindo Pharma ROE % Related Terms
Aurobindo Pharma ROE % Historical Data
* Premium members only.
The historical data trend for Aurobindo Pharma'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, Aurobindo Pharma'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.
Aurobindo Pharma ROE % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Aurobindo Pharma's ROE % distribution charts can be found below:
* The bar in red indicates where Aurobindo Pharma'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.
Aurobindo Pharma (BOM:524804) has a ROE % of 9.73% 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 Aurobindo Pharma and its competitors. This is 35% below median its historical median of 14.95. Over the past decade, Aurobindo Pharma's ROE % has ranged from 7.50 to 28.44. According to the industry distribution chart, Aurobindo Pharma ranks #332 out of 935 companies in the Drug Manufacturers industry, placing it in the top 35.5%.
Is Aurobindo Pharma's ROE % too high?
Aurobindo Pharma's current ROE % of 9.73% is 35% below median its 10-year median of 14.95. Over the past 10 years, this metric has ranged from a low of 7.50 to a high of 28.44. The Drug Manufacturers industry median ROE % is 6.00. Aurobindo Pharma's value of 9.73% is 62.2% above this industry median. Based on the distribution chart, Aurobindo Pharma ranks #332 out of 935 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Aurobindo Pharma has a GF Score™ of 85/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Aurobindo Pharma's ROE % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Aurobindo Pharma ranks #332 out of 935 companies for ROE %. This puts Aurobindo Pharma in the upper half of its industry. The industry median ROE % is 6.00. Aurobindo Pharma's value of 9.73% is 62.2% above this benchmark. Historically, Aurobindo Pharma's own ROE % has ranged from 7.50 to 28.44 over the past decade. While the company's 10-year median is 14.95 vs. the industry median of 6.00, Aurobindo Pharma 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 6.00, based on 935 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. Aurobindo Pharma's current ROE % of 9.73% is 62.2% 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 Aurobindo Pharma and its competitors. For the Drug Manufacturers industry, the median ROE % is 6.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aurobindo Pharma's current ROE % is 9.73%, which is 35% below median its own 10-year median of 14.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aurobindo Pharma stock overvalued right now?
Based on GuruFocus' analysis, Aurobindo Pharma (BOM:524804) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹1,325.78, compared to a current price of ₹1,620.10 — trading 22.2% above its estimated fair value. The current ROE % is 9.73%, which is 35% below median its 10-year median of 14.95 and 62.2% above the Drug Manufacturers industry median of 6.00. Aurobindo Pharma's overall GF Score™ is 85/100 with 7 warning signs 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 Aurobindo Pharma (BOM:524804), the current ROE % is 9.73% 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 Aurobindo Pharma (BOM:524804) Overvalued in 2026?
Based on GuruFocus' analysis, Aurobindo Pharma stock appears to be overvalued.
The current stock price of ₹1,620.10 is trading 22.2% above its estimated GF Value™ of ₹1,325.78.
GuruFocus considers Aurobindo Pharma to be Modestly Overvalued.
Key valuation signals for BOM:524804:
ROE %: 9.73% (35% below median its 10-year median of 14.95)
GF Value™: ₹1,325.78 vs. price of ₹1,620.10 (22.2% above fair value)
Industry Position: 62.2% above the Drug Manufacturers median (#332 of 935)
No single metric tells the full story. See the BOM:524804 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aurobindo Pharma Ltd is a specialty and generic drug manufacturing company. It is principally engaged in the manufacturing and marketing of active pharmaceutical ingredients, generic pharmaceuticals, and related services. Its formulations target key therapeutic areas, including Central Nervous System (CNS), Antibiotics, Anti-diabetics, Cardiovascular, Anti-retroviral, Gastroenterology, Oncology, and Dermatology. The operating and reportable segments of the company are; India, the United States of America, Europe, and the Rest of the World. The company generates a majority of its revenue from its business in the United States of America.
85GF Score
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