Zenith DrugsNSE:ZENITHDRUG +5.38%45 ROE % is 4.43% as of Mar. 2026, which is 84% below its 10-year median of 26.85. GuruFocus rates NSE:ZENITHDRUG with a GF Score™ of 45/100. The stock has 6 warning signs investors should review. Among 935 Drug Manufacturers companies, Zenith Drugs ranks worse than 52.09% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Zenith Drugs's annualized net income for the quarter that ended in Mar. 2026 was ₹32 Mil. Zenith Drugs's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was ₹725 Mil. Therefore, Zenith Drugs's annualized ROE % for the quarter that ended in Mar. 2026 was 4.43%.
The historical rank and industry rank for Zenith Drugs's ROE % or its related term are showing as below:
NSE:ZENITHDRUG'
s ROE % Range Over the Past 10 Years
Min: 5.52 Med: 26.85 Max: 33.84
Current: 5.52
During the past 6 years, Zenith Drugs's highest ROE % was 33.84%. The lowest was 5.52%. And the median was 26.85%.
NSE:ZENITHDRUG's ROE % is ranked worse than 52.09% of 935
companies
in the Drug Manufacturers industry
Industry Median: 6
vs NSE:ZENITHDRUG: 5.52
Zenith Drugs (NSE:ZENITHDRUG) 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 two times the semi-annual (Mar. 2026) net income data. The Revenue data used here is two times the semi-annual (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.
Zenith Drugs ROE % Related Terms
Zenith Drugs ROE % Historical Data
* Premium members only.
The historical data trend for Zenith Drugs'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, Zenith Drugs'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.
Zenith Drugs ROE % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Zenith Drugs's ROE % distribution charts can be found below:
* The bar in red indicates where Zenith Drugs'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 (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Zenith Drugs (NSE:ZENITHDRUG) has a ROE % of 4.43% 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 Zenith Drugs and its competitors. This is 84% below median its historical median of 26.85. Over the past decade, Zenith Drugs' ROE % has ranged from 5.52 to 33.84. According to the industry distribution chart, Zenith Drugs ranks #487 out of 935 companies in the Drug Manufacturers industry, placing it in the top 52.1%.
Is Zenith Drugs' ROE % too high?
Zenith Drugs' current ROE % of 4.43% is 84% below median its 10-year median of 26.85. Over the past 10 years, this metric has ranged from a low of 5.52 to a high of 33.84. The Drug Manufacturers industry median ROE % is 6.00. Zenith Drugs' value of 4.43% is 26.2% below this industry median. Based on the distribution chart, Zenith Drugs ranks #487 out of 935 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Zenith Drugs has a GF Score™ of 45/100, reflecting its overall financial health beyond just this single metric.
How does Zenith Drugs' ROE % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Zenith Drugs ranks #487 out of 935 companies for ROE %. This places Zenith Drugs in the lower half of its industry. The industry median ROE % is 6.00. Zenith Drugs' value of 4.43% is 26.2% below this benchmark. Historically, Zenith Drugs' own ROE % has ranged from 5.52 to 33.84 over the past decade. While the company's 10-year median is 26.85 vs. the industry median of 6.00, Zenith Drugs has consistently been below 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. Zenith Drugs's current ROE % of 4.43% is 26.2% below 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 Zenith Drugs 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. Zenith Drugs's current ROE % is 4.43%, which is 84% below median its own 10-year median of 26.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zenith Drugs stock overvalued right now?
Zenith Drugs (NSE:ZENITHDRUG) has a current ROE % of 4.43%. The current ROE % is 4.43%, which is 84% below median its 10-year median of 26.85 and 26.2% below the Drug Manufacturers industry median of 6.00. Zenith Drugs' overall GF Score™ is 45/100 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 Zenith Drugs (NSE:ZENITHDRUG), the current ROE % is 4.43% 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.
Zenith Drugs Ltd is a pharmaceutical manufacturing and trading company. It offers a wide range of formulations in various forms such as ORS Powder, Liquid Orals, Ointments, Liquid Externals, Creams, Gels, Capsules, and Tablets. It is also into Generic Medicines.
45GF Score
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