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Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Aurobindo Pharma's 3-Year RORE % for the quarter that ended in Jun. 2026 was 2.23%.
The industry rank for Aurobindo Pharma's 3-Year RORE % or its related term are showing as below:
BOM:524804's 3-Year RORE % is ranked worse than 51.06% of 944
companies
in the Drug Manufacturers industry
Industry Median: 3.015
vs BOM:524804: 2.23
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Aurobindo Pharma 3-Year RORE % Related Terms
Aurobindo Pharma 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Aurobindo Pharma's 3-Year RORE % 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, Aurobindo Pharma's 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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.
Aurobindo Pharma 3-Year RORE % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Aurobindo Pharma's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Aurobindo Pharma's 3-Year RORE % 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 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Jun. 2026 and 3-year before.
Aurobindo Pharma (BOM:524804) has a 3-Year RORE % of 2.23 as of Jun. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Aurobindo Pharma and its competitors. According to the industry distribution chart, Aurobindo Pharma ranks #482 out of 944 companies in the Drug Manufacturers industry, placing it in the top 51.1%.
Is Aurobindo Pharma's 3-Year RORE % too high?
Aurobindo Pharma's current 3-Year RORE % is 2.23. The Drug Manufacturers industry median 3-Year RORE % is 3.02. Aurobindo Pharma's value of 2.23 is 26% below this industry median. Based on the distribution chart, Aurobindo Pharma ranks #482 out of 944 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Aurobindo Pharma has a GF Score™ of 83/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Aurobindo Pharma's 3-Year RORE % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Aurobindo Pharma ranks #482 out of 944 companies for 3-Year RORE %. This places Aurobindo Pharma in the lower half of its industry. The industry median 3-Year RORE % is 3.02. Aurobindo Pharma's value of 2.23 is 26% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for a Drug Manufacturers company?
The median 3-Year RORE % among Drug Manufacturers companies is 3.02, based on 944 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Aurobindo Pharma's current 3-Year RORE % of 2.23 is 26% 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 RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Aurobindo Pharma and its competitors. For the Drug Manufacturers industry, the median 3-Year RORE % is 3.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aurobindo Pharma's current 3-Year RORE % is 2.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aurobindo Pharma stock overvalued right now?
Based on GuruFocus' analysis, Aurobindo Pharma (BOM:524804) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹1,426.16, compared to a current price of ₹1,658.00 — trading 16.3% above its estimated fair value. The current 3-Year RORE % is 2.23 and 26% below the Drug Manufacturers industry median of 3.02. Aurobindo Pharma's overall GF Score™ is 83/100 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 RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Aurobindo Pharma (BOM:524804), the current 3-Year RORE % is 2.23 as of Jun. 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 Aurobindo Pharma (BOM:524804) Overvalued in 2026?
Based on GuruFocus' analysis, Aurobindo Pharma stock appears to be overvalued.
The current stock price of ₹1,658.00 is trading 16.3% above its estimated GF Value™ of ₹1,426.16.
GuruFocus considers Aurobindo Pharma to be Modestly Overvalued.
Key valuation signals for BOM:524804:
3-Year RORE %: 2.23
GF Value™: ₹1,426.16 vs. price of ₹1,658.00 (16.3% above fair value)
Industry Position: 26% below the Drug Manufacturers median (#482 of 944)
No single metric tells the full story. See the BOM:524804 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aurobindo Pharma Ltd is a specialty and generic drug manufacturing company. It is principally engaged in the manufacturing and marketing of active pharmaceutical ingredients, generic pharmaceuticals, and related services. Its formulations target key therapeutic areas, including Central Nervous System (CNS), Antibiotics, Anti-diabetics, Cardiovascular, Anti-retroviral, Gastroenterology, Oncology, and Dermatology. The operating and reportable segments of the company are; India, the United States of America, Europe, and the Rest of the World. The company generates a majority of its revenue from its business in the United States of America.
83GF Score
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