Salem Erode Investments (BOM:540181) ROCE %: -15.27% (As of Dec. 2025)

What is Salem Erode Investments ROCE %?

Salem Erode Investments BOM:540181 -4.85% 76 ROCE % is -15.27% as of Dec. 2025. GuruFocus rates BOM:540181 with a GF Score™ of 76/100 and a GF Value™ of ₹42.51 (Modestly Undervalued). The stock has 3 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Salem Erode Investments's annualized ROCE % for the quarter that ended in Dec. 2025 was -15.27%.

Salem Erode Investments (BOM:540181) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Salem Erode Investments ROCE % Related Terms

Salem Erode Investments ROCE % Historical Data

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The historical data trend for Salem Erode Investments's ROCE % 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.

Salem Erode Investments ROCE % Chart

Salem Erode Investments Annual Data

Trend

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Mar25

ROCE %

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7.76

3.65

-0.07

-4.66

-13.68

Salem Erode Investments Quarterly Data
	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25	Jun25	Sep25	Dec25
ROCE %	Get a 7-Day Free Trial															-13.83	-11.06	-12.39	-14.82	-15.27

76GF Score

Salem Erode Investments Ltd BOM:540181

ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.

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Salem Erode Investments ROCE % Calculation

Salem Erode Investments's annualized ROCE % for the fiscal year that ended in Mar. 2025 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Mar. 2025 )		(A: Mar. 2024 )		(A: Mar. 2025 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Mar. 2025 )		(A: Mar. 2024 )		(A: Mar. 2025 )
	=	-47.633	/	( ( (475.268 - 102.622)	+	(364.353 - 40.671) )	/ 2 )
	=	-47.633	/	( (372.646	+	323.682)	/ 2 )
	=	-47.633	/	348.164
	=	-13.68 %

Salem Erode Investments's ROCE % of for the quarter that ended in Dec. 2025 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2025 )		(Q: Sep. 2025 )		(Q: Dec. 2025 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2025 )		(Q: Sep. 2025 )		(Q: Dec. 2025 )
	=	-51.472	/	( ( (338.947 - 1.942)	+	(0 - 0) )	/ 1 )
	=	-51.472	/	( ( 337.005	+	0 )	/ 1 )
	=	-51.472	/	337.005
	=	-15.27 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2025) EBIT data.

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of -15.27% mean?

Salem Erode Investments (BOM:540181) has a ROCE % of -15.27% as of Dec. 2025.

Is Salem Erode Investments' ROCE % too high?

Salem Erode Investments' current ROCE % is -15.27%. Overall, Salem Erode Investments has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.

How does Salem Erode Investments' ROCE % compare to V and MA?

Salem Erode Investments' ROCE % of -15.27% can be compared against companies in the Credit Services industry. The industry median ROCE % is 3.54. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROCE % for a Credit Services company?

The median ROCE % among Credit Services companies is 3.54, based on 416 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.

What does a high ROCE % mean?

A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Credit Services industry, the median ROCE % is 3.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Salem Erode Investments's current ROCE % is -15.27%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Salem Erode Investments stock overvalued right now?

Based on GuruFocus' analysis, Salem Erode Investments (BOM:540181) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹42.51, compared to a current price of ₹37.08 — trading 12.8% below its estimated fair value. The current ROCE % is -15.27%. Salem Erode Investments' overall GF Score™ is 76/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is ROCE % calculated?

ROCE % is calculated from a company's financial statements. For Salem Erode Investments (BOM:540181), the current ROCE % is -15.27% as of Dec. 2025. 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 Salem Erode Investments (BOM:540181) Overvalued in 2026?

Based on GuruFocus' analysis, Salem Erode Investments stock appears to be undervalued. The current stock price of ₹37.08 is trading 12.8% below its estimated GF Value™ of ₹42.51. GuruFocus considers Salem Erode Investments to be Modestly Undervalued.

Key valuation signals for BOM:540181:

ROCE %: -15.27%
GF Value™: ₹42.51 vs. price of ₹37.08 (12.8% below fair value)
GF Score™: 76/100 with 3 warning signs

No single metric tells the full story. See the BOM:540181 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Salem Erode Investments Business Description

Industry Financial Services Credit Services

Comparable Companies BOM:531137 BOM:511505 BOM:540135 BOM:511359 BOM:539217 BOM:534063 BOM:540254 BOM:538868 BOM:511764 NSE:DCCL V MA AXP COF BOM:500034 PYPL AFRM SYF NSE:SHRIRAMFIN SOFI

Address Irinjalakuda Main Road, V. K. K. Building, Thrissur, KL, IND, 680121

Website https://www.salemerode.com

Salem Erode Investments Ltd is engaged in the lending and investment business in India. It is a finance company that helps to secure the future financially and helps in the financial crisis. The company invests in listed and unlisted equity shares, debt instruments of companies in a wide range of industries, and mutual funds. It also lends money with or without security. The company generates revenue from interest income and dividends.

76GF Score

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

₹37.08

Price

₹42.51

GF Value

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