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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 Drug Manufacturers - General subindustry, Highnoon Laboratories'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.
Highnoon Laboratories ROE % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Highnoon Laboratories's ROE % distribution charts can be found below:
* The bar in red indicates where Highnoon Laboratories'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.
Highnoon Laboratories (KAR:HINOON) has a ROE % of 29.36% 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 Highnoon Laboratories and its competitors. This is near median its historical median of 32.06. Over the past decade, Highnoon Laboratories' ROE % has ranged from 27.67 to 36.66. According to the industry distribution chart, Highnoon Laboratories ranks #54 out of 937 companies in the Drug Manufacturers industry, placing it in the top 5.8%.
Is Highnoon Laboratories' ROE % too high?
Highnoon Laboratories' current ROE % of 29.36% is near median its 10-year median of 32.06. Over the past 10 years, this metric has ranged from a low of 27.67 to a high of 36.66. The Drug Manufacturers industry median ROE % is 6.04. Highnoon Laboratories' value of 29.36% is 386.1% above this industry median. Based on the distribution chart, Highnoon Laboratories ranks #54 out of 937 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Highnoon Laboratories has a GF Score™ of 96/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Highnoon Laboratories' ROE % compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Highnoon Laboratories ranks #54 out of 937 companies for ROE %. This places Highnoon Laboratories in the top 6% of its industry — outperforming the majority of peers. The industry median ROE % is 6.04. Highnoon Laboratories' value of 29.36% is 386.1% above this benchmark. Historically, Highnoon Laboratories' own ROE % has ranged from 27.67 to 36.66 over the past decade. While the company's 10-year median is 32.06 vs. the industry median of 6.04, Highnoon Laboratories 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 6.04, based on 937 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. Highnoon Laboratories's current ROE % of 29.36% is 386.1% 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 Highnoon Laboratories 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. Highnoon Laboratories's current ROE % is 29.36%, which is near median its own 10-year median of 32.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Highnoon Laboratories stock overvalued right now?
Based on GuruFocus' analysis, Highnoon Laboratories (KAR:HINOON) is currently considered Fairly Valued. The stock's GF Value™ is ₨1,019.72, compared to a current price of ₨961.21 — trading 5.7% below its estimated fair value. The current ROE % is 29.36%, which is near median its 10-year median of 32.06 and 386.1% above the Drug Manufacturers industry median of 6.04. Highnoon Laboratories' overall GF Score™ is 96/100 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 Highnoon Laboratories (KAR:HINOON), the current ROE % is 29.36% 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 Highnoon Laboratories (KAR:HINOON) Overvalued in 2026?
Based on GuruFocus' analysis, Highnoon Laboratories stock appears to be undervalued.
The current stock price of ₨961.21 is trading 5.7% below its estimated GF Value™ of ₨1,019.72.
GuruFocus considers Highnoon Laboratories to be Fairly Valued.
Key valuation signals for KAR:HINOON:
ROE %: 29.36% (near median its 10-year median of 32.06)
GF Value™: ₨1,019.72 vs. price of ₨961.21 (5.7% below fair value)
Industry Position: 386.1% above the Drug Manufacturers median (#54 of 937)
No single metric tells the full story. See the KAR:HINOON stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Highnoon Laboratories Ltd is a company engaged in the manufacture, import, sale, and marketing of pharmaceutical and allied consumer products. It focuses on the alimentary tract and metabolism, antihistamines, anti-infectives, cardiovascular, endocrine, hematology, musculoskeletal, nervous system, parasitology, respiratory, and urinary. Its products include AIRTAL (Aceclofenac); ARIA (ketotifen); ARTECXCIN, and artrodar (diacerein). Its other products include Asthavent, AXESOME, Bezisox, Betatec, and many more.
96GF Score
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