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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.
Natco Pharma's 3-Year RORE % for the quarter that ended in Mar. 2026 was 0.79%.
The industry rank for Natco Pharma's 3-Year RORE % or its related term are showing as below:
NSE:NATCOPHARM's 3-Year RORE % is ranked worse than 51.64% of 945
companies
in the Drug Manufacturers industry
Industry Median: 2.73
vs NSE:NATCOPHARM: 0.79
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.
Natco Pharma 3-Year RORE % Related Terms
Natco Pharma 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Natco 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, Natco 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.
Natco Pharma 3-Year RORE % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Natco Pharma's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Natco 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 Mar. 2026 and 3-year before.
Natco Pharma (NSE:NATCOPHARM) has a 3-Year RORE % of 0.79 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Natco Pharma and its competitors. According to the industry distribution chart, Natco Pharma ranks #488 out of 945 companies in the Drug Manufacturers industry, placing it in the top 51.6%.
Is Natco Pharma's 3-Year RORE % too high?
Natco Pharma's current 3-Year RORE % is 0.79. The Drug Manufacturers industry median 3-Year RORE % is 2.73. Natco Pharma's value of 0.79 is 71.1% below this industry median. Based on the distribution chart, Natco Pharma ranks #488 out of 945 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Natco Pharma has a GF Score™ of 92/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Natco Pharma's 3-Year RORE % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Natco Pharma ranks #488 out of 945 companies for 3-Year RORE %. This places Natco Pharma in the lower half of its industry. The industry median 3-Year RORE % is 2.73. Natco Pharma's value of 0.79 is 71.1% 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 2.73, based on 945 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. Natco Pharma's current 3-Year RORE % of 0.79 is 71.1% 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 Natco Pharma and its competitors. For the Drug Manufacturers industry, the median 3-Year RORE % is 2.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Natco Pharma's current 3-Year RORE % is 0.79. 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 Modestly Undervalued. The stock's GF Value™ is ₹1,043.81, compared to a current price of ₹907.00 — trading 13.1% below its estimated fair value. The current 3-Year RORE % is 0.79 and 71.1% below the Drug Manufacturers industry median of 2.73. Natco Pharma's overall GF Score™ is 92/100 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 RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Natco Pharma (NSE:NATCOPHARM), the current 3-Year RORE % is 0.79 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 undervalued.
The current stock price of ₹907.00 is trading 13.1% below its estimated GF Value™ of ₹1,043.81.
GuruFocus considers Natco Pharma to be Modestly Undervalued.
Key valuation signals for NSE:NATCOPHARM:
3-Year RORE %: 0.79
GF Value™: ₹1,043.81 vs. price of ₹907.00 (13.1% below fair value)
Industry Position: 71.1% below the Drug Manufacturers median (#488 of 945)
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.
92GF Score
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