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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Investment & Precision Castings's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 10.32%.
As of today (2026-07-28), Investment & Precision Castings's WACC % is 14.91%. Investment & Precision Castings's ROIC % is 8.86% (calculated using TTM income statement data).
Investment & Precision Castings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Investment & Precision Castings's WACC % is 14.91%. Investment & Precision Castings's ROIC % is 8.86% (calculated using TTM income statement data).
Investment & Precision Castings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Investment & Precision Castings ROIC % Related Terms
Investment & Precision Castings ROIC % Historical Data
* 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 Steel subindustry, Investment & Precision Castings's ROIC %, along with its competitors' market caps and ROIC % 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.
Investment & Precision Castings ROIC % vs Steel Industry
For the Steel industry and Basic Materials sector, Investment & Precision Castings's ROIC % distribution charts can be found below:
* The bar in red indicates where Investment & Precision Castings's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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.
Investment & Precision Castings (BOM:504786) has a ROIC % of 10.32% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Investment & Precision Castings and its competitors.
Is Investment & Precision Castings' ROIC % too high?
Investment & Precision Castings' current ROIC % is 10.32%. The Steel industry median ROIC % is 2.52. Investment & Precision Castings' value of 10.32% is 309.5% above this industry median. Overall, Investment & Precision Castings has a GF Score™ of 57/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Investment & Precision Castings' ROIC % compare to NUE and STLD?
Investment & Precision Castings' ROIC % of 10.32% can be compared against companies in the Steel industry. The industry median ROIC % is 2.52. Investment & Precision Castings' value of 10.32% is 309.5% 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 ROIC % for a Steel company?
The median ROIC % among Steel companies is 2.52, based on 621 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Investment & Precision Castings's current ROIC % of 10.32% is 309.5% 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 ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Investment & Precision Castings and its competitors. For the Steel industry, the median ROIC % is 2.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Investment & Precision Castings's current ROIC % is 10.32%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Investment & Precision Castings stock overvalued right now?
Based on GuruFocus' analysis, Investment & Precision Castings (BOM:504786) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹464.15, compared to a current price of ₹1,002.50 — trading 116% above its estimated fair value. The current ROIC % is 10.32% and 309.5% above the Steel industry median of 2.52. Investment & Precision Castings' overall GF Score™ is 57/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Investment & Precision Castings (BOM:504786), the current ROIC % is 10.32% 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 Investment & Precision Castings (BOM:504786) Overvalued in 2026?
Based on GuruFocus' analysis, Investment & Precision Castings stock appears to be overvalued.
The current stock price of ₹1,002.50 is trading 116% above its estimated GF Value™ of ₹464.15.
GuruFocus considers Investment & Precision Castings to be Significantly Overvalued.
Key valuation signals for BOM:504786:
ROIC %: 10.32%
GF Value™: ₹464.15 vs. price of ₹1,002.50 (116% above fair value)
No single metric tells the full story. See the BOM:504786 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Investment & Precision Castings Business Description
Investment & Precision Castings Ltd is engaged in the steel casting business. The company's products portfolio includes two-three-four-wheeler, bus tractor parts; aircraft parts; turbochargers for diesel engines; power plants, pumps and valves, medical implants; electrical and instrumentation; general engineering; electronics; electronics; compressors; artisan castings; and machined components from bar stock. The company also provides its products and services to ancillaries and the wind power generation industry. It operates in two segments Investment Castings and Power Generation. The majority of the company's revenue comes from the Investment Castings segment.
57GF Score
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