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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.
* 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 Chemicals subindustry, Sudarshan Pharma Industries'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.
Sudarshan Pharma Industries ROE % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Sudarshan Pharma Industries's ROE % distribution charts can be found below:
* The bar in red indicates where Sudarshan Pharma Industries'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.
Sudarshan Pharma Industries (BOM:543828) has a ROE % of 27.45% 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 Sudarshan Pharma Industries and its competitors. This is 120% above median its historical median of 12.45. Over the past decade, Sudarshan Pharma Industries' ROE % has ranged from 4.87 to 20.08. According to the industry distribution chart, Sudarshan Pharma Industries ranks #194 out of 1584 companies in the Chemicals industry, placing it in the top 12.2%.
Is Sudarshan Pharma Industries' ROE % too high?
Sudarshan Pharma Industries' current ROE % of 27.45% is 120% above median its 10-year median of 12.45. Over the past 10 years, this metric has ranged from a low of 4.87 to a high of 20.08. The Chemicals industry median ROE % is 5.35. Sudarshan Pharma Industries' value of 27.45% is 413.1% above this industry median. Based on the distribution chart, Sudarshan Pharma Industries ranks #194 out of 1584 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Sudarshan Pharma Industries has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sudarshan Pharma Industries' ROE % compare to DOW?
According to the Chemicals industry distribution chart, Sudarshan Pharma Industries ranks #194 out of 1584 companies for ROE %. This places Sudarshan Pharma Industries in the top 12% of its industry — outperforming the majority of peers. The industry median ROE % is 5.35. Sudarshan Pharma Industries' value of 27.45% is 413.1% above this benchmark. Historically, Sudarshan Pharma Industries' own ROE % has ranged from 4.87 to 20.08 over the past decade. While the company's 10-year median is 12.45 vs. the industry median of 5.35, Sudarshan Pharma Industries 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 Chemicals company?
The median ROE % among Chemicals companies is 5.35, based on 1,584 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. Sudarshan Pharma Industries's current ROE % of 27.45% is 413.1% 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 Sudarshan Pharma Industries and its competitors. For the Chemicals industry, the median ROE % is 5.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sudarshan Pharma Industries's current ROE % is 27.45%, which is 120% above median its own 10-year median of 12.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sudarshan Pharma Industries stock overvalued right now?
Based on GuruFocus' analysis, Sudarshan Pharma Industries (BOM:543828) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹6.52, compared to a current price of ₹32.49 — trading 398.3% above its estimated fair value. The current ROE % is 27.45%, which is 120% above median its 10-year median of 12.45 and 413.1% above the Chemicals industry median of 5.35. Sudarshan Pharma Industries' overall GF Score™ is 69/100 with 14 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 Sudarshan Pharma Industries (BOM:543828), the current ROE % is 27.45% 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 Sudarshan Pharma Industries (BOM:543828) Overvalued in 2026?
Based on GuruFocus' analysis, Sudarshan Pharma Industries stock appears to be overvalued.
The current stock price of ₹32.49 is trading 398.3% above its estimated GF Value™ of ₹6.52.
GuruFocus considers Sudarshan Pharma Industries to be Significantly Overvalued.
Key valuation signals for BOM:543828:
ROE %: 27.45% (120% above median its 10-year median of 12.45)
GF Value™: ₹6.52 vs. price of ₹32.49 (398.3% above fair value)
Industry Position: 413.1% above the Chemicals median (#194 of 1584)
No single metric tells the full story. See the BOM:543828 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sudarshan Pharma Industries Ltd operates in the pharmaceutical and chemical industries, focusing on specialty chemicals and intermediates used in pharmaceuticals, paints, food products, and adhesives. The Company has a presence domestically and internationally, participating regularly in trade fairs and exhibitions. The Company exports mainly to South East Asia, the Middle East, and North Africa. The Company also supplies generic pharmaceutical formulation as 'Make to order' for bulk supply to hospitals and related healthcare organisations. The company has one reportable segment of Specialty Chemicals.
69GF Score
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