Aarti PharmalabsNSE:AARTIPHARM +0.92%57 3-Year ROIIC % is 1.23 as of Mar. 2026, which is 89% below its 10-year median of 10.78. GuruFocus rates NSE:AARTIPHARM with a GF Score™ of 57/100 and a GF Value™ of ₹643.69 (Fairly Valued). The stock has 3 warning signs investors should review. Among 944 Drug Manufacturers companies, Aarti Pharmalabs ranks worse than 54.87% 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.
Aarti Pharmalabs's 3-Year ROIIC % for the quarter that ended in Mar. 2026 was 1.23%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Aarti Pharmalabs's 3-Year ROIIC % or its related term are showing as below:
NSE:AARTIPHARM's 3-Year ROIIC % is ranked worse than 54.87% of 944
companies
in the Drug Manufacturers industry
Industry Median: 3.635
vs NSE:AARTIPHARM: 1.23
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.
Aarti Pharmalabs 3-Year ROIIC % Related Terms
Aarti Pharmalabs 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Aarti Pharmalabs'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.
NSE:AARTIPHARM vs ZTS, UTHR: 3-Year ROIIC % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Aarti Pharmalabs'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.
Aarti Pharmalabs 3-Year ROIIC % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Aarti Pharmalabs's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Aarti Pharmalabs'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.
Aarti Pharmalabs (NSE:AARTIPHARM) has a 3-Year ROIIC % of 1.23 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 Aarti Pharmalabs and its competitors. This is 89% below median its historical median of 10.78. Over the past decade, Aarti Pharmalabs' 3-Year ROIIC % has ranged from 1.23 to 18.99. According to the industry distribution chart, Aarti Pharmalabs ranks #518 out of 944 companies in the Drug Manufacturers industry, placing it in the top 54.9%.
Is Aarti Pharmalabs' 3-Year ROIIC % too high?
Aarti Pharmalabs' current 3-Year ROIIC % of 1.23 is 89% below median its 10-year median of 10.78. Over the past 10 years, this metric has ranged from a low of 1.23 to a high of 18.99. The Drug Manufacturers industry median 3-Year ROIIC % is 3.64. Aarti Pharmalabs' value of 1.23 is 66.2% below this industry median. Based on the distribution chart, Aarti Pharmalabs ranks #518 out of 944 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Aarti Pharmalabs has a GF Score™ of 57/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Aarti Pharmalabs' 3-Year ROIIC % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Aarti Pharmalabs ranks #518 out of 944 companies for 3-Year ROIIC %. This places Aarti Pharmalabs in the lower half of its industry. The industry median 3-Year ROIIC % is 3.64. Aarti Pharmalabs' value of 1.23 is 66.2% below this benchmark. Historically, Aarti Pharmalabs' own 3-Year ROIIC % has ranged from 1.23 to 18.99 over the past decade. While the company's 10-year median is 10.78 vs. the industry median of 3.64, Aarti Pharmalabs 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 3.64, based on 944 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. Aarti Pharmalabs's current 3-Year ROIIC % of 1.23 is 66.2% 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 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 Aarti Pharmalabs and its competitors. For the Drug Manufacturers industry, the median 3-Year ROIIC % is 3.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aarti Pharmalabs's current 3-Year ROIIC % is 1.23, which is 89% below median its own 10-year median of 10.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aarti Pharmalabs stock overvalued right now?
Based on GuruFocus' analysis, Aarti Pharmalabs (NSE:AARTIPHARM) is currently considered Fairly Valued. The stock's GF Value™ is ₹643.69, compared to a current price of ₹709.45 — trading 10.2% above its estimated fair value. The current 3-Year ROIIC % is 1.23, which is 89% below median its 10-year median of 10.78 and 66.2% below the Drug Manufacturers industry median of 3.64. Aarti Pharmalabs' overall GF Score™ is 57/100 with 3 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 Aarti Pharmalabs (NSE:AARTIPHARM), the current 3-Year ROIIC % is 1.23 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 Aarti Pharmalabs (NSE:AARTIPHARM) Overvalued in 2026?
Based on GuruFocus' analysis, Aarti Pharmalabs stock appears to be overvalued.
The current stock price of ₹709.45 is trading 10.2% above its estimated GF Value™ of ₹643.69.
GuruFocus considers Aarti Pharmalabs to be Fairly Valued.
Key valuation signals for NSE:AARTIPHARM:
3-Year ROIIC %: 1.23 (89% below median its 10-year median of 10.78)
GF Value™: ₹643.69 vs. price of ₹709.45 (10.2% above fair value)
Industry Position: 66.2% below the Drug Manufacturers median (#518 of 944)
No single metric tells the full story. See the NSE:AARTIPHARM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aarti Pharmalabs Ltd manufactures pharmaceuticals and nutraceuticals with a footprint. The company manufactures Active Pharmaceutical Ingredients (API), pharmaceutical intermediates, acids, and xanthine derivatives, including caffeine, theophylline anhydrous, aminophylline, etophylline, and theophylline in India. It also offers Contract Development and Manufacturing Services (CDMS) for drug substance (NCE, RSM, Intermediates) projects. Geographically, the company generates maximum revenue from its customers located outside India.
57GF Score
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