Sotac PharmaceuticalsNSE:SOTAC 53 ROE % is 8.98% as of Sep. 2025, which is 32% below its 10-year median of 13.23. GuruFocus rates NSE:SOTAC with a GF Score™ of 53/100 and a GF Value™ of ₹110.01 (Fairly Valued). The stock has 6 warning signs investors should review. Among 933 Drug Manufacturers companies, Sotac Pharmaceuticals ranks better than 80.92% on this metric.
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 two times the semi-annual (Sep. 2025) net income data. The Revenue data used here is two times the semi-annual (Sep. 2025) 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 - Specialty & Generic subindustry, Sotac Pharmaceuticals'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.
Sotac Pharmaceuticals ROE % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Sotac Pharmaceuticals's ROE % distribution charts can be found below:
* The bar in red indicates where Sotac Pharmaceuticals'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 two times the semi-annual (Sep. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Sotac Pharmaceuticals (NSE:SOTAC) has a ROE % of 8.98% as of Sep. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Sotac Pharmaceuticals and its competitors. This is 32% below median its historical median of 13.23. According to the industry distribution chart, Sotac Pharmaceuticals ranks #178 out of 933 companies in the Drug Manufacturers industry, placing it in the top 19.1%.
Is Sotac Pharmaceuticals' ROE % too high?
Sotac Pharmaceuticals' current ROE % of 8.98% is 32% below median its 10-year median of 13.23. The Drug Manufacturers industry median ROE % is 5.89. Sotac Pharmaceuticals' value of 8.98% is 52.5% above this industry median. Based on the distribution chart, Sotac Pharmaceuticals ranks #178 out of 933 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Sotac Pharmaceuticals has a GF Score™ of 53/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Sotac Pharmaceuticals' ROE % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Sotac Pharmaceuticals ranks #178 out of 933 companies for ROE %. This places Sotac Pharmaceuticals in the top 19% of its industry — outperforming the majority of peers. The industry median ROE % is 5.89. Sotac Pharmaceuticals' value of 8.98% is 52.5% above this benchmark. While the company's 10-year median is 13.23 vs. the industry median of 5.89, Sotac Pharmaceuticals 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 5.89, based on 933 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. Sotac Pharmaceuticals's current ROE % of 8.98% is 52.5% 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 Sotac Pharmaceuticals and its competitors. For the Drug Manufacturers industry, the median ROE % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sotac Pharmaceuticals's current ROE % is 8.98%, which is 32% below median its own 10-year median of 13.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sotac Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Sotac Pharmaceuticals (NSE:SOTAC) is currently considered Fairly Valued. The stock's GF Value™ is ₹110.01, compared to a current price of ₹105.00 — trading 4.6% below its estimated fair value. The current ROE % is 8.98%, which is 32% below median its 10-year median of 13.23 and 52.5% above the Drug Manufacturers industry median of 5.89. Sotac Pharmaceuticals' overall GF Score™ is 53/100 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 Sotac Pharmaceuticals (NSE:SOTAC), the current ROE % is 8.98% as of Sep. 2025. 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 Sotac Pharmaceuticals (NSE:SOTAC) Overvalued in 2026?
Based on GuruFocus' analysis, Sotac Pharmaceuticals stock appears to be undervalued.
The current stock price of ₹105.00 is trading 4.6% below its estimated GF Value™ of ₹110.01.
GuruFocus considers Sotac Pharmaceuticals to be Fairly Valued.
Key valuation signals for NSE:SOTAC:
ROE %: 8.98% (32% below median its 10-year median of 13.23)
GF Value™: ₹110.01 vs. price of ₹105.00 (4.6% below fair value)
Industry Position: 52.5% above the Drug Manufacturers median (#178 of 933)
No single metric tells the full story. See the NSE:SOTAC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sotac Pharmaceuticals Ltd operates chiefly in pharmaceutical manufacturing, serving a broad range of therapeutic segments including anti-diabetic, anti-psychotic, vitamins and minerals, anti-cold, anti-allergic, derma products, antacids, anti-ulcerants, cardiac, analgesic, anti-bacterial, anti-fungal, and more. The company manufactures tablets, capsules, syrups, and external preparations under contract manufacturing and loan licensing agreements, for domestic and international markets. Its clients include notable pharmaceutical marketers such as Cadila Pharma and Viatris. Revenue is distributed between domestic pharmaceutical product sales and international exports, supporting scalable growth across geographies.
53GF Score
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