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Smruthi OrganicsBOM:540686 -1.04%68 ROE % is 5.81% as of Mar. 2026, which is 3% above its 10-year median of 5.66. GuruFocus rates BOM:540686 with a GF Score™ of 68/100 and a GF Value™ of ₹107.46 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 939 Drug Manufacturers companies, Smruthi Organics ranks worse than 54.31% on this metric.
The historical rank and industry rank for Smruthi Organics's ROE % or its related term are showing as below:
BOM:540686'
s ROE % Range Over the Past 10 Years
Min: -10.48 Med: 5.66 Max: 33.23
Current: 4.76
During the past 13 years, Smruthi Organics's highest ROE % was 33.23%. The lowest was -10.48%. And the median was 5.66%.
BOM:540686's ROE % is ranked worse than 54.31% of 939
companies
in the Drug Manufacturers industry
Industry Median: 6.04
vs BOM:540686: 4.76
Smruthi Organics (BOM:540686) 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.
Smruthi Organics ROE % Related Terms
Smruthi Organics ROE % Historical Data
* Premium members only.
The historical data trend for Smruthi Organics'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, Smruthi Organics'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.
Smruthi Organics ROE % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Smruthi Organics's ROE % distribution charts can be found below:
* The bar in red indicates where Smruthi Organics'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.
Smruthi Organics (BOM:540686) has a ROE % of 5.81% 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 Smruthi Organics and its competitors. This is near median its historical median of 5.66. According to the industry distribution chart, Smruthi Organics ranks #510 out of 939 companies in the Drug Manufacturers industry, placing it in the top 54.3%.
Is Smruthi Organics' ROE % too high?
Smruthi Organics' current ROE % of 5.81% is near median its 10-year median of 5.66. The Drug Manufacturers industry median ROE % is 6.04. Smruthi Organics' value of 5.81% is 3.8% below this industry median. Based on the distribution chart, Smruthi Organics ranks #510 out of 939 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Smruthi Organics has a GF Score™ of 68/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Smruthi Organics' ROE % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Smruthi Organics ranks #510 out of 939 companies for ROE %. This places Smruthi Organics in the lower half of its industry. The industry median ROE % is 6.04. Smruthi Organics' value of 5.81% is 3.8% below this benchmark. While the company's 10-year median is 5.66 vs. the industry median of 6.04, Smruthi Organics 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 6.04, based on 939 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. Smruthi Organics's current ROE % of 5.81% is 3.8% 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 Smruthi Organics and its competitors. For the Drug Manufacturers industry, the median ROE % is 6.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Smruthi Organics's current ROE % is 5.81%, which is near median its own 10-year median of 5.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Smruthi Organics stock overvalued right now?
Based on GuruFocus' analysis, Smruthi Organics (BOM:540686) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹107.46, compared to a current price of ₹118.80 — trading 10.6% above its estimated fair value. The current ROE % is 5.81%, which is near median its 10-year median of 5.66 and 3.8% below the Drug Manufacturers industry median of 6.04. Smruthi Organics' overall GF Score™ is 68/100 with 4 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 Smruthi Organics (BOM:540686), the current ROE % is 5.81% 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 Smruthi Organics (BOM:540686) Overvalued in 2026?
Based on GuruFocus' analysis, Smruthi Organics stock appears to be overvalued.
The current stock price of ₹118.80 is trading 10.6% above its estimated GF Value™ of ₹107.46.
GuruFocus considers Smruthi Organics to be Modestly Overvalued.
Key valuation signals for BOM:540686:
ROE %: 5.81% (near median its 10-year median of 5.66)
GF Value™: ₹107.46 vs. price of ₹118.80 (10.6% above fair value)
Industry Position: 3.8% below the Drug Manufacturers median (#510 of 939)
No single metric tells the full story. See the BOM:540686 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Smruthi Organics Ltd is engaged in the manufacture of bulk drugs and drug intermediates (API Products). The product portfolio includes Amlodipine Besilate, Amlodipine Base, S-Amlodipine Besilate, S-Amlodipine Base, Norfloxacin, Metformin HCI, Diloxanide Furoate, Phthaloyl Amlodipine, Pantoprazole Sodium, Pefloxacin Mesylate Dihydrate, Telmisartan, Losartan Potassium, and many more. It has two reportable business segments: Bulk Drugs and Drugs Intermediates (API), and Formulation. It generates the majority of its revenue from the Bulk Drugs and Drugs Intermediates (API) segment. Geographically, the company generates maximum revenue from outside India through exports, and the rest from its business within India.
68GF Score
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