Zim LaboratoriesNSE:ZIMLAB -2.32%76 ROE % is 5.05% as of Mar. 2026, which is 39% below its 10-year median of 8.26. GuruFocus rates NSE:ZIMLAB with a GF Score™ of 76/100 and a GF Value™ of ₹102.87 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 936 Drug Manufacturers companies, Zim Laboratories ranks worse than 62.5% on this metric.
The historical rank and industry rank for Zim Laboratories's ROE % or its related term are showing as below:
NSE:ZIMLAB'
s ROE % Range Over the Past 10 Years
Min: 2.13 Med: 8.26 Max: 17.11
Current: 2.19
During the past 12 years, Zim Laboratories's highest ROE % was 17.11%. The lowest was 2.13%. And the median was 8.26%.
NSE:ZIMLAB's ROE % is ranked worse than 62.5% of 936
companies
in the Drug Manufacturers industry
Industry Median: 5.865
vs NSE:ZIMLAB: 2.19
Zim Laboratories (NSE:ZIMLAB) 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.
Zim Laboratories ROE % Related Terms
Zim Laboratories ROE % Historical Data
* Premium members only.
The historical data trend for Zim Laboratories'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, Zim 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.
Zim Laboratories ROE % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Zim Laboratories's ROE % distribution charts can be found below:
* The bar in red indicates where Zim 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.
Zim Laboratories (NSE:ZIMLAB) has a ROE % of 5.05% 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 Zim Laboratories and its competitors. This is 39% below median its historical median of 8.26. Over the past decade, Zim Laboratories' ROE % has ranged from 2.13 to 17.11. According to the industry distribution chart, Zim Laboratories ranks #585 out of 936 companies in the Drug Manufacturers industry, placing it in the top 62.5%.
Is Zim Laboratories' ROE % too high?
Zim Laboratories' current ROE % of 5.05% is 39% below median its 10-year median of 8.26. Over the past 10 years, this metric has ranged from a low of 2.13 to a high of 17.11. The Drug Manufacturers industry median ROE % is 5.87. Zim Laboratories' value of 5.05% is 13.9% below this industry median. Based on the distribution chart, Zim Laboratories ranks #585 out of 936 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Zim Laboratories has a GF Score™ of 76/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zim Laboratories' ROE % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Zim Laboratories ranks #585 out of 936 companies for ROE %. This places Zim Laboratories in the lower half of its industry. The industry median ROE % is 5.87. Zim Laboratories' value of 5.05% is 13.9% below this benchmark. Historically, Zim Laboratories' own ROE % has ranged from 2.13 to 17.11 over the past decade. While the company's 10-year median is 8.26 vs. the industry median of 5.87, Zim Laboratories 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 5.87, based on 936 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. Zim Laboratories's current ROE % of 5.05% is 13.9% 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 Zim Laboratories and its competitors. For the Drug Manufacturers industry, the median ROE % is 5.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zim Laboratories's current ROE % is 5.05%, which is 39% below median its own 10-year median of 8.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zim Laboratories stock overvalued right now?
Based on GuruFocus' analysis, Zim Laboratories (NSE:ZIMLAB) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹102.87, compared to a current price of ₹124.90 — trading 21.4% above its estimated fair value. The current ROE % is 5.05%, which is 39% below median its 10-year median of 8.26 and 13.9% below the Drug Manufacturers industry median of 5.87. Zim Laboratories' overall GF Score™ is 76/100 with 8 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 Zim Laboratories (NSE:ZIMLAB), the current ROE % is 5.05% 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 Zim Laboratories (NSE:ZIMLAB) Overvalued in 2026?
Based on GuruFocus' analysis, Zim Laboratories stock appears to be overvalued.
The current stock price of ₹124.90 is trading 21.4% above its estimated GF Value™ of ₹102.87.
GuruFocus considers Zim Laboratories to be Modestly Overvalued.
Key valuation signals for NSE:ZIMLAB:
ROE %: 5.05% (39% below median its 10-year median of 8.26)
GF Value™: ₹102.87 vs. price of ₹124.90 (21.4% above fair value)
Industry Position: 13.9% below the Drug Manufacturers median (#585 of 936)
No single metric tells the full story. See the NSE:ZIMLAB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zim Laboratories Ltd is engaged in the manufacturing of formulation drugs and pre formulation ingredients in India and marketing and selling these within and outside India. It is engaged in manufacturing &wholesale of pharmaceutical products, market research and research & development activities. The Group is mainly engaged in the business of pharmaceuticals. It has presence in India and Outside India. The company generates majority of revenue from India. Its products are Oral Thin Films, Pre-formulations Intermediates, Finished Formulations.
76GF Score
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