Natco PharmaNSE:NATCOPHARM -0.33%89 ROE % is 11.62% as of Mar. 2026, which is 36% below its 10-year median of 18.25. GuruFocus rates NSE:NATCOPHARM with a GF Score™ of 89/100 and a GF Value™ of ₹936.16 (Fairly Valued). The stock has 2 warning signs investors should review. Among 935 Drug Manufacturers companies, Natco Pharma ranks better than 81.5% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Natco Pharma's annualized net income for the quarter that ended in Mar. 2026 was ₹10,716 Mil. Natco Pharma's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was ₹92,211 Mil. Therefore, Natco Pharma's annualized ROE % for the quarter that ended in Mar. 2026 was 11.62%.
The historical rank and industry rank for Natco Pharma's ROE % or its related term are showing as below:
NSE:NATCOPHARM'
s ROE % Range Over the Past 10 Years
Min: 4.05 Med: 18.25 Max: 33.01
Current: 16.7
During the past 13 years, Natco Pharma's highest ROE % was 33.01%. The lowest was 4.05%. And the median was 18.25%.
NSE:NATCOPHARM's ROE % is ranked better than 81.5% of 935
companies
in the Drug Manufacturers industry
Industry Median: 6
vs NSE:NATCOPHARM: 16.70
Natco Pharma (NSE:NATCOPHARM) 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.
Natco Pharma ROE % Related Terms
Natco Pharma ROE % Historical Data
* Premium members only.
The historical data trend for Natco Pharma'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, Natco Pharma'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.
Natco Pharma ROE % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Natco Pharma's ROE % distribution charts can be found below:
* The bar in red indicates where Natco Pharma'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.
Natco Pharma (NSE:NATCOPHARM) has a ROE % of 11.62% 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 Natco Pharma and its competitors. This is 36% below median its historical median of 18.25. Over the past decade, Natco Pharma's ROE % has ranged from 4.05 to 33.01. According to the industry distribution chart, Natco Pharma ranks #173 out of 935 companies in the Drug Manufacturers industry, placing it in the top 18.5%.
Is Natco Pharma's ROE % too high?
Natco Pharma's current ROE % of 11.62% is 36% below median its 10-year median of 18.25. Over the past 10 years, this metric has ranged from a low of 4.05 to a high of 33.01. The Drug Manufacturers industry median ROE % is 6.00. Natco Pharma's value of 11.62% is 93.7% above this industry median. Based on the distribution chart, Natco Pharma ranks #173 out of 935 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Natco Pharma has a GF Score™ of 89/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Natco Pharma's ROE % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Natco Pharma ranks #173 out of 935 companies for ROE %. This places Natco Pharma in the top 19% of its industry — outperforming the majority of peers. The industry median ROE % is 6.00. Natco Pharma's value of 11.62% is 93.7% above this benchmark. Historically, Natco Pharma's own ROE % has ranged from 4.05 to 33.01 over the past decade. While the company's 10-year median is 18.25 vs. the industry median of 6.00, Natco Pharma 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 6.00, based on 935 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. Natco Pharma's current ROE % of 11.62% is 93.7% 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 Natco Pharma 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. Natco Pharma's current ROE % is 11.62%, which is 36% below median its own 10-year median of 18.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Natco Pharma stock overvalued right now?
Based on GuruFocus' analysis, Natco Pharma (NSE:NATCOPHARM) is currently considered Fairly Valued. The stock's GF Value™ is ₹936.16, compared to a current price of ₹931.40 — trading 0.5% below its estimated fair value. The current ROE % is 11.62%, which is 36% below median its 10-year median of 18.25 and 93.7% above the Drug Manufacturers industry median of 6.00. Natco Pharma's overall GF Score™ is 89/100 with 2 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 Natco Pharma (NSE:NATCOPHARM), the current ROE % is 11.62% 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 Natco Pharma (NSE:NATCOPHARM) Overvalued in 2026?
Based on GuruFocus' analysis, Natco Pharma stock appears to be undervalued.
The current stock price of ₹931.40 is trading 0.5% below its estimated GF Value™ of ₹936.16.
GuruFocus considers Natco Pharma to be Fairly Valued.
Key valuation signals for NSE:NATCOPHARM:
ROE %: 11.62% (36% below median its 10-year median of 18.25)
GF Value™: ₹936.16 vs. price of ₹931.40 (0.5% below fair value)
Industry Position: 93.7% above the Drug Manufacturers median (#173 of 935)
No single metric tells the full story. See the NSE:NATCOPHARM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Natco Pharma Ltd is a drug manufacturing company. Natco aims to make specialty medicines accessible to all by manufacturing niche pharmaceutical products backed by its research and development capabilities. While the vast majority of the company's revenue is generated in India, the company looks internationally for growth opportunities. The company maintains a presence in Oncology and Hepatology treatment areas. Natco's active pharmaceutical ingredient segment APIs forms a core part of the company's business. The company operates in two different business segments: pharmaceuticals and agrochemicals. It derives maximum revenue from Pharmaceuticals Segment.
89GF Score
Get the complete analysis for NSE:NATCOPHARM
ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NSE:NATCOPHARM has been successfully added to your 
