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Laurus LabsBOM:540222 -0.41%66 3-Year ROIIC % is 2.55 as of Mar. 2026, which is 66% below its 10-year median of 7.54. GuruFocus rates BOM:540222 with a GF Score™ of 66/100 and a GF Value™ of ₹842.42 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 943 Drug Manufacturers companies, Laurus Labs ranks worse than 52.6% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Laurus Labs's 3-Year ROIIC % for the quarter that ended in Mar. 2026 was 2.55%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Laurus Labs's 3-Year ROIIC % or its related term are showing as below:
BOM:540222's 3-Year ROIIC % is ranked worse than 52.6% of 943
companies
in the Drug Manufacturers industry
Industry Median: 3.56
vs BOM:540222: 2.55
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Laurus Labs 3-Year ROIIC % Related Terms
Laurus Labs 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Laurus Labs's 3-Year ROIIC % 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, Laurus Labs's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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.
Laurus Labs 3-Year ROIIC % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Laurus Labs's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Laurus Labs's 3-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Laurus Labs (BOM:540222) has a 3-Year ROIIC % of 2.55 as of Mar. 2026. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Laurus Labs and its competitors. This is 66% below median its historical median of 7.54. According to the industry distribution chart, Laurus Labs ranks #496 out of 943 companies in the Drug Manufacturers industry, placing it in the top 52.6%.
Is Laurus Labs' 3-Year ROIIC % too high?
Laurus Labs' current 3-Year ROIIC % of 2.55 is 66% below median its 10-year median of 7.54. The Drug Manufacturers industry median 3-Year ROIIC % is 3.56. Laurus Labs' value of 2.55 is 28.4% below this industry median. Based on the distribution chart, Laurus Labs ranks #496 out of 943 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Laurus Labs has a GF Score™ of 66/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Laurus Labs' 3-Year ROIIC % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Laurus Labs ranks #496 out of 943 companies for 3-Year ROIIC %. This places Laurus Labs in the lower half of its industry. The industry median 3-Year ROIIC % is 3.56. Laurus Labs' value of 2.55 is 28.4% below this benchmark. While the company's 10-year median is 7.54 vs. the industry median of 3.56, Laurus Labs 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 3-Year ROIIC % for a Drug Manufacturers company?
The median 3-Year ROIIC % among Drug Manufacturers companies is 3.56, based on 943 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Laurus Labs's current 3-Year ROIIC % of 2.55 is 28.4% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Laurus Labs and its competitors. For the Drug Manufacturers industry, the median 3-Year ROIIC % is 3.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Laurus Labs's current 3-Year ROIIC % is 2.55, which is 66% below median its own 10-year median of 7.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Laurus Labs stock overvalued right now?
Based on GuruFocus' analysis, Laurus Labs (BOM:540222) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹842.42, compared to a current price of ₹1,807.00 — trading 114.5% above its estimated fair value. The current 3-Year ROIIC % is 2.55, which is 66% below median its 10-year median of 7.54 and 28.4% below the Drug Manufacturers industry median of 3.56. Laurus Labs' overall GF Score™ is 66/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Laurus Labs (BOM:540222), the current 3-Year ROIIC % is 2.55 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 Laurus Labs (BOM:540222) Overvalued in 2026?
Based on GuruFocus' analysis, Laurus Labs stock appears to be overvalued.
The current stock price of ₹1,807.00 is trading 114.5% above its estimated GF Value™ of ₹842.42.
GuruFocus considers Laurus Labs to be Significantly Overvalued.
Key valuation signals for BOM:540222:
3-Year ROIIC %: 2.55 (66% below median its 10-year median of 7.54)
GF Value™: ₹842.42 vs. price of ₹1,807.00 (114.5% above fair value)
Industry Position: 28.4% below the Drug Manufacturers median (#496 of 943)
No single metric tells the full story. See the BOM:540222 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Laurus Labs Ltd is a pharmaceutical company based in India. It provides active pharmaceutical ingredients (API) including intermediates, Generic Finished dosage forms (FDF), and Contract Research services. The entity develops APIs and intermediates for select, high-growth antiretrovirals, Hepatitis C and Oncology. It also manufactures APIs in other therapeutic areas, such as anti-asthma, ophthalmology, anti-diabetics, cardiovascular, and proton pump inhibitors, among others. The company has its business presence in India and Outside India of which it derives a majority of revenue from Outside India. The company generates revenue from the sale of API, Intermediates and Formulations, Contract research services, and others.
66GF Score
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