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Dipna Pharmachem (BOM:543594) ROE % : 3.17% (As of Mar. 2024)


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What is Dipna Pharmachem ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Dipna Pharmachem's annualized net income for the quarter that ended in Mar. 2024 was ₹10 Mil. Dipna Pharmachem's average Total Stockholders Equity over the quarter that ended in Mar. 2024 was ₹312 Mil. Therefore, Dipna Pharmachem's annualized ROE % for the quarter that ended in Mar. 2024 was 3.17%.

The historical rank and industry rank for Dipna Pharmachem's ROE % or its related term are showing as below:

BOM:543594' s ROE % Range Over the Past 10 Years
Min: 3.51   Med: 6.99   Max: 101.02
Current: 3.75

During the past 5 years, Dipna Pharmachem's highest ROE % was 101.02%. The lowest was 3.51%. And the median was 6.99%.

BOM:543594's ROE % is ranked worse than
54.41% of 623 companies
in the Healthcare Providers & Services industry
Industry Median: 5.03 vs BOM:543594: 3.75

Dipna Pharmachem ROE % Historical Data

The historical data trend for Dipna Pharmachem'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.

* Premium members only.

Dipna Pharmachem ROE % Chart

Dipna Pharmachem Annual Data
Trend Mar20 Mar21 Mar22 Mar23 Mar24
ROE %
10.78 4.32 101.02 6.99 3.51

Dipna Pharmachem Semi-Annual Data
Mar20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24
ROE % Get a 7-Day Free Trial 96.84 5.21 4.82 4.79 3.17

Competitive Comparison of Dipna Pharmachem's ROE %

For the Pharmaceutical Retailers subindustry, Dipna Pharmachem'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.


Dipna Pharmachem's ROE % Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Dipna Pharmachem's ROE % distribution charts can be found below:

* The bar in red indicates where Dipna Pharmachem's ROE % falls into.



Dipna Pharmachem ROE % Calculation

Dipna Pharmachem's annualized ROE % for the fiscal year that ended in Mar. 2024 is calculated as

ROE %=Net Income (A: Mar. 2024 )/( (Total Stockholders Equity (A: Mar. 2023 )+Total Stockholders Equity (A: Mar. 2024 ))/ count )
=10.853/( (243.581+375.187)/ 2 )
=10.853/309.384
=3.51 %

Dipna Pharmachem's annualized ROE % for the quarter that ended in Mar. 2024 is calculated as

ROE %=Net Income (Q: Mar. 2024 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Mar. 2024 ))/ count )
=9.898/( (249.485+375.187)/ 2 )
=9.898/312.336
=3.17 %

* 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 two times the semi-annual (Mar. 2024) net income data. ROE % is displayed in the 30-year financial page.


Dipna Pharmachem  (BOM:543594) 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. 2024 )
=Net Income/Total Stockholders Equity
=9.898/312.336
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(9.898 / 1806.106)*(1806.106 / 1186.3)*(1186.3 / 312.336)
=Net Margin %*Asset Turnover*Equity Multiplier
=0.55 %*1.5225*3.7982
=ROA %*Equity Multiplier
=0.84 %*3.7982
=3.17 %

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. 2024 )
=Net Income/Total Stockholders Equity
=9.898/312.336
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (9.898 / 12.428) * (12.428 / 40.75) * (40.75 / 1806.106) * (1806.106 / 1186.3) * (1186.3 / 312.336)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7964 * 0.305 * 2.26 % * 1.5225 * 3.7982
=3.17 %

Note: The net income data used here is two times the semi-annual (Mar. 2024) net income data. The Revenue data used here is two times the semi-annual (Mar. 2024) 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.


Dipna Pharmachem ROE % Related Terms

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Dipna Pharmachem Business Description

Traded in Other Exchanges
N/A
Address
A/211, Siddhi Vinayak Complex, Near D.A.V. School, Makarba, Ahmedabad, GJ, IND, 380055
Dipna Pharmachem Ltd is engaged in the trading and distribution of a wide range of pharmaceutical raw materials which is also known as APIs (Active Pharmaceutical Ingredients), Excipient and chemical formulation products. The company's product portfolio comprises of Hydrocortisone Acetate, Aceclofenac, Asprin, Levofloxacin, and others.

Dipna Pharmachem Headlines

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