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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 %. Sahara Housingfina's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 0.06%.
As of today (2026-07-14), Sahara Housingfina's WACC % is 13.02%. Sahara Housingfina's ROIC % is 0.52% (calculated using TTM income statement data).
Sahara Housingfina 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, Sahara Housingfina's WACC % is 13.02%. Sahara Housingfina's ROIC % is 0.52% (calculated using TTM income statement data).
Sahara Housingfina 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.
Sahara Housingfina ROIC % Related Terms
Sahara Housingfina ROIC % Historical Data
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The historical data trend for Sahara Housingfina's ROIC % 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 Mortgage Finance subindustry, Sahara Housingfina'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.
Sahara Housingfina ROIC % vs Banks Industry
For the Banks industry and Financial Services sector, Sahara Housingfina's ROIC % distribution charts can be found below:
* The bar in red indicates where Sahara Housingfina'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.
Sahara Housingfina (BOM:511533) has a ROIC % of 0.06% 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 Sahara Housingfina and its competitors.
Is Sahara Housingfina's ROIC % too high?
Sahara Housingfina's current ROIC % is 0.06%. The Banks industry median ROIC % is 1.85. Sahara Housingfina's value of 0.06% is 96.8% below this industry median. Overall, Sahara Housingfina has a GF Score™ of 68/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sahara Housingfina's ROIC % compare to RKT and FNMA?
Sahara Housingfina's ROIC % of 0.06% can be compared against companies in the Banks industry. The industry median ROIC % is 1.85. Sahara Housingfina's value of 0.06% is 96.8% 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 ROIC % for a Banks company?
The median ROIC % among Banks companies is 1.85, based on 47 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. Sahara Housingfina's current ROIC % of 0.06% is 96.8% 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 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 Sahara Housingfina and its competitors. For the Banks industry, the median ROIC % is 1.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sahara Housingfina's current ROIC % is 0.06%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sahara Housingfina stock overvalued right now?
Based on GuruFocus' analysis, Sahara Housingfina (BOM:511533) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹35.99, compared to a current price of ₹41.98 — trading 16.6% above its estimated fair value. The current ROIC % is 0.06% and 96.8% below the Banks industry median of 1.85. Sahara Housingfina's overall GF Score™ is 68/100 with 7 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 Sahara Housingfina (BOM:511533), the current ROIC % is 0.06% 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 Sahara Housingfina (BOM:511533) Overvalued in 2026?
Based on GuruFocus' analysis, Sahara Housingfina stock appears to be overvalued.
The current stock price of ₹41.98 is trading 16.6% above its estimated GF Value™ of ₹35.99.
GuruFocus considers Sahara Housingfina to be Modestly Overvalued.
Key valuation signals for BOM:511533:
ROIC %: 0.06%
GF Value™: ₹35.99 vs. price of ₹41.98 (16.6% above fair value)
No single metric tells the full story. See the BOM:511533 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sahara Housingfina Corp Ltd is an Indian company engaged in carrying out activities of housing finance companies (Housing Loans and Non-Housing Loans). Its product portfolio includes Individual Housing Loans, Home Improvement Loans, Home Extension loans, Land Loans, Home Loan Plus, Mortgage Loans, Non-Residential Property Loans, Home Loan Enhancement, and Loan Take Over / Balance Transfer. The company is exclusively engaged in the Housing Finance business, and revenues are mainly derived from this activity. The company generates the majority of its revenue from Interest Income.
68GF Score
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