Novartis India (NSE:NOVARTIND) 3-Year RORE % : 3.15% (As of Mar. 2026)


NSE:NOVARTIND Novartis India Ltd NSE:NOVARTIND
62 GF Score
Price ₹1,494.60
GF Value ₹642.38
Valuation Significantly Overvalued
! 7 Warning Signs
View Full Analysis

What is Novartis India 3-Year RORE %?

Novartis India NSE:NOVARTIND +1.93% 62 3-Year RORE % is 3.15 as of Mar. 2026. GuruFocus rates NSE:NOVARTIND with a GF Score™ of 62/100 and a GF Value™ of ₹642.38 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 939 Drug Manufacturers companies, Novartis India ranks better than 54.63% on this metric.

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. Novartis India's 3-Year RORE % for the quarter that ended in Mar. 2026 was 3.15%.

The industry rank for Novartis India's 3-Year RORE % or its related term are showing as below:

NSE:NOVARTIND's 3-Year RORE % is ranked better than
54.63% of 939 companies
in the Drug Manufacturers industry
Industry Median: 3.06 vs NSE:NOVARTIND: 3.15

Novartis India  (NSE:NOVARTIND) 3-Year RORE % Explanation

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.


Novartis India 3-Year RORE % Related Terms


Novartis India 3-Year RORE % Historical Data

* Premium members only.

The historical data trend for Novartis India'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.

Novartis India 3-Year RORE % Chart

Novartis India Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
3-Year RORE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 62.32 177.65 80.33 -1.00 3.15

Novartis India Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
3-Year RORE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.00 14.68 12.23 0.69 3.15

NSE:NOVARTIND vs ZTS, UTHR: 3-Year RORE % Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Novartis India'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.


Novartis India 3-Year RORE % vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Novartis India's 3-Year RORE % distribution charts can be found below:

* The bar in red indicates where Novartis India's 3-Year RORE % falls into.


NSE:NOVARTIND
62GF Score
Novartis India Ltd NSE:NOVARTIND
3-Year RORE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Novartis India 3-Year RORE % Calculation

Novartis India's 3-Year RORE % for the quarter that ended in Mar. 2026 is calculated as:

3-Year RORE %=( Most Recent EPS (Diluted)- First Period EPS (Diluted) )/( Cumulative EPS (Diluted) for 3-year -Cumulative Dividends per Share for 3-year )
=( 37.75-34.5 )/( 113.12-10 )
=3.25/103.12
=3.15 %

* 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.

Frequently Asked Questions Learn more about 3-Year RORE % →
What does a 3-Year RORE % of 3.15 mean?
Novartis India (NSE:NOVARTIND) has a 3-Year RORE % of 3.15 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 Novartis India and its competitors. According to the industry distribution chart, Novartis India ranks #426 out of 939 companies in the Drug Manufacturers industry, placing it in the top 45.4%.
Is Novartis India's 3-Year RORE % too high?
Novartis India's current 3-Year RORE % is 3.15. The Drug Manufacturers industry median 3-Year RORE % is 3.06. Novartis India's value of 3.15 is 2.9% above this industry median. Based on the distribution chart, Novartis India ranks #426 out of 939 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Novartis India has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Novartis India's 3-Year RORE % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Novartis India ranks #426 out of 939 companies for 3-Year RORE %. This puts Novartis India in the upper half of its industry. The industry median 3-Year RORE % is 3.06. Novartis India's value of 3.15 is 2.9% above 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 3.06, based on 939 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. Novartis India's current 3-Year RORE % of 3.15 is 2.9% 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 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 Novartis India and its competitors. For the Drug Manufacturers industry, the median 3-Year RORE % is 3.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Novartis India's current 3-Year RORE % is 3.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Novartis India stock overvalued right now?
Based on GuruFocus' analysis, Novartis India (NSE:NOVARTIND) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹642.38, compared to a current price of ₹1,494.60 — trading 132.7% above its estimated fair value. The current 3-Year RORE % is 3.15 and 2.9% above the Drug Manufacturers industry median of 3.06. Novartis India's overall GF Score™ is 62/100 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 Novartis India (NSE:NOVARTIND), the current 3-Year RORE % is 3.15 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 Novartis India (NSE:NOVARTIND) Overvalued in 2026?

Based on GuruFocus' analysis, Novartis India stock appears to be overvalued. The current stock price of ₹1,494.60 is trading 132.7% above its estimated GF Value™ of ₹642.38. GuruFocus considers Novartis India to be Significantly Overvalued.

Key valuation signals for NSE:NOVARTIND:

  • 3-Year RORE %: 3.15
  • GF Value™: ₹642.38 vs. price of ₹1,494.60 (132.7% above fair value)
  • GF Score™: 62/100 with 7 warning signs
  • Industry Position: 2.9% above the Drug Manufacturers median (#426 of 939)

No single metric tells the full story. See the NSE:NOVARTIND stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Novartis India Business Description

Other Exchanges 500672:India
Address Inspire BKC, Part of 601 & 701, Bandra Kurla Complex, Bandra (East), Mumbai, MH, IND, 400 051
Novartis India Ltd is an Indian-based pharmaceutical company. The company is engaged in the trading of Drugs and Pharmaceuticals. It derives revenue from operations in India. The company operates in a single business segment, namely Pharmaceutical Business. Its Pharmaceutical business focuses on Bone and Pain, Transplantation Immunology, and Neurosciences.
62GF Score

Get the complete analysis for NSE:NOVARTIND

3-Year RORE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹1,494.60
Price
₹642.38
GF Value