Denis Chem Lab (BOM:537536) ROE %: 1.75% (As of Mar. 2026) — 82% Below Median


BOM:537536 Denis Chem Lab Ltd BOM:537536
78 GF Score
Price ₹76.86
GF Value ₹118.36
Valuation Significantly Undervalued
! 3 Warning Signs
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What is Denis Chem Lab ROE %?

Denis Chem Lab BOM:537536 +4.36% 78 ROE % is 1.75% as of Mar. 2026, which is 82% below its 10-year median of 9.64. GuruFocus rates BOM:537536 with a GF Score™ of 78/100 and a GF Value™ of ₹118.36 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 933 Drug Manufacturers companies, Denis Chem Lab ranks better than 63.02% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Denis Chem Lab's annualized net income for the quarter that ended in Mar. 2026 was ₹16 Mil. Denis Chem Lab's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was ₹916 Mil. Therefore, Denis Chem Lab's annualized ROE % for the quarter that ended in Mar. 2026 was 1.75%.

The historical rank and industry rank for Denis Chem Lab's ROE % or its related term are showing as below:

BOM:537536' s ROE % Range Over the Past 10 Years
Min: 3.76   Med: 9.64   Max: 14.62
Current: 9.54

During the past 13 years, Denis Chem Lab's highest ROE % was 14.62%. The lowest was 3.76%. And the median was 9.64%.

BOM:537536's ROE % is ranked better than
63.02% of 933 companies
in the Drug Manufacturers industry
Industry Median: 6 vs BOM:537536: 9.54

Denis Chem Lab  (BOM:537536) 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:

ROE %(Q: Mar. 2026 )
=Net Income/Total Stockholders Equity
=16.004/915.733
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(16.004 / 1870.196)*(1870.196 / 1248.262)*(1248.262 / 915.733)
=Net Margin %*Asset Turnover*Equity Multiplier
=0.86 %*1.4982*1.3631
=ROA %*Equity Multiplier
=1.29 %*1.3631
=1.75 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Mar. 2026 )
=Net Income/Total Stockholders Equity
=16.004/915.733
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (16.004 / 45.596) * (45.596 / 32.22) * (32.22 / 1870.196) * (1870.196 / 1248.262) * (1248.262 / 915.733)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.351 * 1.4151 * 1.72 % * 1.4982 * 1.3631
=1.75 %

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.


Denis Chem Lab ROE % Related Terms


Denis Chem Lab ROE % Historical Data

* Premium members only.

The historical data trend for Denis Chem Lab'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.

Denis Chem Lab ROE % Chart

Denis Chem Lab Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.79 11.33 14.62 9.76 9.52

Denis Chem Lab Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROE % 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 3.33 11.63 10.09 15.14 1.75

BOM:537536 vs ZTS, UTHR: ROE % Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Denis Chem Lab'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.


Denis Chem Lab ROE % vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Denis Chem Lab's ROE % distribution charts can be found below:

* The bar in red indicates where Denis Chem Lab's ROE % falls into.


BOM:537536
78GF Score
Denis Chem Lab Ltd BOM:537536
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Denis Chem Lab ROE % Calculation

Denis Chem Lab's annualized ROE % for the fiscal year that ended in Mar. 2026 is calculated as

ROE %=Net Income (A: Mar. 2026 )/( (Total Stockholders Equity (A: Mar. 2025 )+Total Stockholders Equity (A: Mar. 2026 ))/ count )
=84.093/( (851.042+915.733)/ 2 )
=84.093/883.3875
=9.52 %

Denis Chem Lab's annualized ROE % for the quarter that ended in Mar. 2026 is calculated as

ROE %=Net Income (Q: Mar. 2026 )/( (Total Stockholders Equity (Q: Dec. 2025 )+Total Stockholders Equity (Q: Mar. 2026 ))/ count )
=16.004/( (0+915.733)/ 1 )
=16.004/915.733
=1.75 %

* 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.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of 1.75% mean?
Denis Chem Lab (BOM:537536) has a ROE % of 1.75% 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 Denis Chem Lab and its competitors. This is 82% below median its historical median of 9.64. Over the past decade, Denis Chem Lab's ROE % has ranged from 3.76 to 14.62. According to the industry distribution chart, Denis Chem Lab ranks #345 out of 933 companies in the Drug Manufacturers industry, placing it in the top 37%.
Is Denis Chem Lab's ROE % too high?
Denis Chem Lab's current ROE % of 1.75% is 82% below median its 10-year median of 9.64. Over the past 10 years, this metric has ranged from a low of 3.76 to a high of 14.62. The Drug Manufacturers industry median ROE % is 6.00. Denis Chem Lab's value of 1.75% is 70.8% below this industry median. Based on the distribution chart, Denis Chem Lab ranks #345 out of 933 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Denis Chem Lab has a GF Score™ of 78/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Denis Chem Lab's ROE % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Denis Chem Lab ranks #345 out of 933 companies for ROE %. This puts Denis Chem Lab in the upper half of its industry. The industry median ROE % is 6.00. Denis Chem Lab's value of 1.75% is 70.8% below this benchmark. Historically, Denis Chem Lab's own ROE % has ranged from 3.76 to 14.62 over the past decade. While the company's 10-year median is 9.64 vs. the industry median of 6.00, Denis Chem Lab has consistently been below 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 933 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. Denis Chem Lab's current ROE % of 1.75% is 70.8% 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 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 Denis Chem Lab 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. Denis Chem Lab's current ROE % is 1.75%, which is 82% below median its own 10-year median of 9.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Denis Chem Lab stock overvalued right now?
Based on GuruFocus' analysis, Denis Chem Lab (BOM:537536) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹118.36, compared to a current price of ₹76.86 — trading 35.1% below its estimated fair value. The current ROE % is 1.75%, which is 82% below median its 10-year median of 9.64 and 70.8% below the Drug Manufacturers industry median of 6.00. Denis Chem Lab's overall GF Score™ is 78/100 with 3 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 Denis Chem Lab (BOM:537536), the current ROE % is 1.75% 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 Denis Chem Lab (BOM:537536) Overvalued in 2026?

Based on GuruFocus' analysis, Denis Chem Lab stock appears to be undervalued. The current stock price of ₹76.86 is trading 35.1% below its estimated GF Value™ of ₹118.36. GuruFocus considers Denis Chem Lab to be Significantly Undervalued.

Key valuation signals for BOM:537536:

  • ROE %: 1.75% (82% below median its 10-year median of 9.64)
  • GF Value™: ₹118.36 vs. price of ₹76.86 (35.1% below fair value)
  • GF Score™: 78/100 with 3 warning signs
  • Industry Position: 70.8% below the Drug Manufacturers median (#345 of 933)

No single metric tells the full story. See the BOM:537536 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Denis Chem Lab Business Description

Address Satellite Road, 401 Abhishree Complex, Opposite OM Tower, Beside Bidiwala Park, Ahmedabad, GJ, IND, 380015
Denis Chem Lab Ltd is a pharmaceutical company involved in the manufacturing of pharmaceutical products. The company offers sterile intravenous injectables for human and veterinary use for different therapeutic areas. Its product portfolio includes antibiotic injections, diuretic injections, parenteral amino acid injections, plasma volume expanders, anti-pyretic Inj. irrigation solutions and dialysis solutions. The company has only one reportable segment which is Manufacturing, and Sales of Transfusion Solution in Bottles It generates its revenues through the sale of transfusion solution in bottles.
78GF Score

Get the complete analysis for BOM:537536

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

₹76.86
Price
₹118.36
GF Value