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Shilpa MedicareNSE:SHILPAMED -2.76%76 ROE % is 16.64% as of Mar. 2026, which is 69% above its 10-year median of 9.82. GuruFocus rates NSE:SHILPAMED with a GF Score™ of 76/100 and a GF Value™ of ₹387.78 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 939 Drug Manufacturers companies, Shilpa Medicare ranks better than 64% on this metric.
The historical rank and industry rank for Shilpa Medicare's ROE % or its related term are showing as below:
NSE:SHILPAMED'
s ROE % Range Over the Past 10 Years
Min: -1.8 Med: 9.82 Max: 12.68
Current: 9.86
During the past 13 years, Shilpa Medicare's highest ROE % was 12.68%. The lowest was -1.80%. And the median was 9.82%.
NSE:SHILPAMED's ROE % is ranked better than 64% of 939
companies
in the Drug Manufacturers industry
Industry Median: 6.04
vs NSE:SHILPAMED: 9.86
Shilpa Medicare (NSE:SHILPAMED) 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.
Shilpa Medicare ROE % Related Terms
Shilpa Medicare ROE % Historical Data
* Premium members only.
The historical data trend for Shilpa Medicare'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, Shilpa Medicare'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.
Shilpa Medicare ROE % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Shilpa Medicare's ROE % distribution charts can be found below:
* The bar in red indicates where Shilpa Medicare'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.
Shilpa Medicare (NSE:SHILPAMED) has a ROE % of 16.64% 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 Shilpa Medicare and its competitors. This is 69% above median its historical median of 9.82. According to the industry distribution chart, Shilpa Medicare ranks #338 out of 939 companies in the Drug Manufacturers industry, placing it in the top 36%.
Is Shilpa Medicare's ROE % too high?
Shilpa Medicare's current ROE % of 16.64% is 69% above median its 10-year median of 9.82. The Drug Manufacturers industry median ROE % is 6.04. Shilpa Medicare's value of 16.64% is 175.5% above this industry median. Based on the distribution chart, Shilpa Medicare ranks #338 out of 939 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Shilpa Medicare has a GF Score™ of 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shilpa Medicare's ROE % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Shilpa Medicare ranks #338 out of 939 companies for ROE %. This puts Shilpa Medicare in the upper half of its industry. The industry median ROE % is 6.04. Shilpa Medicare's value of 16.64% is 175.5% above this benchmark. While the company's 10-year median is 9.82 vs. the industry median of 6.04, Shilpa Medicare 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 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. Shilpa Medicare's current ROE % of 16.64% is 175.5% 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 Shilpa Medicare 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. Shilpa Medicare's current ROE % is 16.64%, which is 69% above median its own 10-year median of 9.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shilpa Medicare stock overvalued right now?
Based on GuruFocus' analysis, Shilpa Medicare (NSE:SHILPAMED) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹387.78, compared to a current price of ₹620.25 — trading 59.9% above its estimated fair value. The current ROE % is 16.64%, which is 69% above median its 10-year median of 9.82 and 175.5% above the Drug Manufacturers industry median of 6.04. Shilpa Medicare's overall GF Score™ is 76/100 with 6 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 Shilpa Medicare (NSE:SHILPAMED), the current ROE % is 16.64% 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 Shilpa Medicare (NSE:SHILPAMED) Overvalued in 2026?
Based on GuruFocus' analysis, Shilpa Medicare stock appears to be overvalued.
The current stock price of ₹620.25 is trading 59.9% above its estimated GF Value™ of ₹387.78.
GuruFocus considers Shilpa Medicare to be Significantly Overvalued.
Key valuation signals for NSE:SHILPAMED:
ROE %: 16.64% (69% above median its 10-year median of 9.82)
GF Value™: ₹387.78 vs. price of ₹620.25 (59.9% above fair value)
Industry Position: 175.5% above the Drug Manufacturers median (#338 of 939)
No single metric tells the full story. See the NSE:SHILPAMED stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shilpa Medicare Ltd is a specialty and generic drug manufacturer. The company deals in high-quality Active Pharmaceutical Ingredients (APIs), Intermediates, Formulations, New Drug Delivery Systems, Peptides, Biotech products, and Specialty Chemicals etc. Its portfolio comprises various oncology and non-oncology-related APIs such as anastrozole, acebrophylline, busulphan, decitabine, etc, and finished dosage formulations such as apremilast tablets, clofarabine injection, docetaxel injection, etc., in various therapy areas. Its reporting segments are: Pharmaceutical product and services, which derive maximum revenue, Power sales, and Others. Geographically, the company generates maximum revenue from India, followed by Europe, the United States of America, and the Rest of the world.
76GF Score
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