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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.
Ajanta Pharma's 5-Year RORE % for the quarter that ended in Jun. 2026 was 15.37%.
The industry rank for Ajanta Pharma's 5-Year RORE % or its related term are showing as below:
NSE:AJANTPHARM's 5-Year RORE % is ranked better than 69.76% of 883
companies
in the Drug Manufacturers industry
Industry Median: 0.98
vs NSE:AJANTPHARM: 15.37
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, 5-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.
Ajanta Pharma 5-Year RORE % Related Terms
Ajanta Pharma 5-Year RORE % Historical Data
* Premium members only.
The historical data trend for Ajanta Pharma's 5-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, Ajanta Pharma's 5-Year RORE %, along with its competitors' market caps and 5-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.
Ajanta Pharma 5-Year RORE % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Ajanta Pharma's 5-Year RORE % distribution charts can be found below:
* The bar in red indicates where Ajanta Pharma's 5-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 5-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Jun. 2026 and 5-year before.
Ajanta Pharma (NSE:AJANTPHARM) has a 5-Year RORE % of 15.37 as of Jun. 2026. 5-Year RORE % shows how much a company earns by reinvesting its retained earnings in 5-year. View historical data on Ajanta Pharma and its competitors. According to the industry distribution chart, Ajanta Pharma ranks #267 out of 883 companies in the Drug Manufacturers industry, placing it in the top 30.2%.
Is Ajanta Pharma's 5-Year RORE % too high?
Ajanta Pharma's current 5-Year RORE % is 15.37. The Drug Manufacturers industry median 5-Year RORE % is 0.98. Ajanta Pharma's value of 15.37 is 1468.4% above this industry median. Based on the distribution chart, Ajanta Pharma ranks #267 out of 883 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Ajanta Pharma has a GF Score™ of 95/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Ajanta Pharma's 5-Year RORE % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Ajanta Pharma ranks #267 out of 883 companies for 5-Year RORE %. This puts Ajanta Pharma in the upper half of its industry. The industry median 5-Year RORE % is 0.98. Ajanta Pharma's value of 15.37 is 1468.4% 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 5-Year RORE % for a Drug Manufacturers company?
The median 5-Year RORE % among Drug Manufacturers companies is 0.98, based on 883 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ajanta Pharma's current 5-Year RORE % of 15.37 is 1468.4% 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 5-Year RORE % mean?
A high 5-Year RORE % can signal that a stock is expensive relative to its fundamentals. 5-Year RORE % shows how much a company earns by reinvesting its retained earnings in 5-year. View historical data on Ajanta Pharma and its competitors. For the Drug Manufacturers industry, the median 5-Year RORE % is 0.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ajanta Pharma's current 5-Year RORE % is 15.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ajanta Pharma stock overvalued right now?
Based on GuruFocus' analysis, Ajanta Pharma (NSE:AJANTPHARM) is currently considered Fairly Valued. The stock's GF Value™ is ₹3,348.50, compared to a current price of ₹3,481.70 — trading 4% above its estimated fair value. The current 5-Year RORE % is 15.37 and 1468.4% above the Drug Manufacturers industry median of 0.98. Ajanta Pharma's overall GF Score™ is 95/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year RORE % calculated?
5-Year RORE % is calculated from a company's financial statements. For Ajanta Pharma (NSE:AJANTPHARM), the current 5-Year RORE % is 15.37 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 Ajanta Pharma (NSE:AJANTPHARM) Overvalued in 2026?
Based on GuruFocus' analysis, Ajanta Pharma stock appears to be overvalued.
The current stock price of ₹3,481.70 is trading 4% above its estimated GF Value™ of ₹3,348.50.
GuruFocus considers Ajanta Pharma to be Fairly Valued.
Key valuation signals for NSE:AJANTPHARM:
5-Year RORE %: 15.37
GF Value™: ₹3,348.50 vs. price of ₹3,481.70 (4% above fair value)
Industry Position: 1468.4% above the Drug Manufacturers median (#267 of 883)
No single metric tells the full story. See the NSE:AJANTPHARM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ajanta Pharma Ltd is mainly involved in development, manufacturing and marketing of speciality pharmaceutical finished dosages. The operations of the Group are limited to only one segment viz. pharmaceuticals and related products. The company has presence in India, Emerging Market, Africa Institution, and USA. The company generates majority of revenue from Emerging market.
95GF Score
Get the complete analysis for NSE:AJANTPHARM
5-Year RORE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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