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Natco PharmaNSE:NATCOPHARM +3.98%91 3-Year ROIIC % is 13.33 as of Mar. 2026, which is 51% below its 10-year median of 27.48. GuruFocus rates NSE:NATCOPHARM with a GF Score™ of 91/100 and a GF Value™ of ₹918.74 (Fairly Valued). The stock has 2 warning signs investors should review. Among 944 Drug Manufacturers companies, Natco Pharma ranks better than 64.41% 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.
Natco Pharma's 3-Year ROIIC % for the quarter that ended in Mar. 2026 was 13.33%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Natco Pharma's 3-Year ROIIC % or its related term are showing as below:
NSE:NATCOPHARM's 3-Year ROIIC % is ranked better than 64.41% of 944
companies
in the Drug Manufacturers industry
Industry Median: 3.56
vs NSE:NATCOPHARM: 13.33
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.
Natco Pharma 3-Year ROIIC % Related Terms
Natco Pharma 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Natco Pharma'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, Natco Pharma'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.
Natco Pharma 3-Year ROIIC % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Natco Pharma's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Natco Pharma'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.
Natco Pharma (NSE:NATCOPHARM) has a 3-Year ROIIC % of 13.33 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 Natco Pharma and its competitors. This is 51% below median its historical median of 27.48. According to the industry distribution chart, Natco Pharma ranks #336 out of 944 companies in the Drug Manufacturers industry, placing it in the top 35.6%.
Is Natco Pharma's 3-Year ROIIC % too high?
Natco Pharma's current 3-Year ROIIC % of 13.33 is 51% below median its 10-year median of 27.48. The Drug Manufacturers industry median 3-Year ROIIC % is 3.56. Natco Pharma's value of 13.33 is 274.4% above this industry median. Based on the distribution chart, Natco Pharma ranks #336 out of 944 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Natco Pharma has a GF Score™ of 91/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Natco Pharma's 3-Year ROIIC % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Natco Pharma ranks #336 out of 944 companies for 3-Year ROIIC %. This puts Natco Pharma in the upper half of its industry. The industry median 3-Year ROIIC % is 3.56. Natco Pharma's value of 13.33 is 274.4% above this benchmark. While the company's 10-year median is 27.48 vs. the industry median of 3.56, Natco Pharma 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 3-Year ROIIC % for a Drug Manufacturers company?
The median 3-Year ROIIC % among Drug Manufacturers companies is 3.56, 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. Natco Pharma's current 3-Year ROIIC % of 13.33 is 274.4% 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 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 Natco Pharma 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. Natco Pharma's current 3-Year ROIIC % is 13.33, which is 51% below median its own 10-year median of 27.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Natco Pharma stock overvalued right now?
Based on GuruFocus' analysis, Natco Pharma (NSE:NATCOPHARM) is currently considered Fairly Valued. The stock's GF Value™ is ₹918.74, compared to a current price of ₹951.70 — trading 3.6% above its estimated fair value. The current 3-Year ROIIC % is 13.33, which is 51% below median its 10-year median of 27.48 and 274.4% above the Drug Manufacturers industry median of 3.56. Natco Pharma's overall GF Score™ is 91/100 with 2 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 Natco Pharma (NSE:NATCOPHARM), the current 3-Year ROIIC % is 13.33 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 Natco Pharma (NSE:NATCOPHARM) Overvalued in 2026?
Based on GuruFocus' analysis, Natco Pharma stock appears to be overvalued.
The current stock price of ₹951.70 is trading 3.6% above its estimated GF Value™ of ₹918.74.
GuruFocus considers Natco Pharma to be Fairly Valued.
Key valuation signals for NSE:NATCOPHARM:
3-Year ROIIC %: 13.33 (51% below median its 10-year median of 27.48)
GF Value™: ₹918.74 vs. price of ₹951.70 (3.6% above fair value)
Industry Position: 274.4% above the Drug Manufacturers median (#336 of 944)
No single metric tells the full story. See the NSE:NATCOPHARM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Natco Pharma Ltd is a drug manufacturing company. Natco aims to make specialty medicines accessible to all by manufacturing niche pharmaceutical products backed by its research and development capabilities. While the vast majority of the company's revenue is generated in India, the company looks internationally for growth opportunities. The company maintains a presence in Oncology and Hepatology treatment areas. Natco's active pharmaceutical ingredient segment APIs forms a core part of the company's business. The company operates in two different business segments: pharmaceuticals and agrochemicals. It derives maximum revenue from Pharmaceuticals Segment.
91GF Score
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