ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Jyoti Resins & Adhesives's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 32.34%.
As of today (2026-07-08), Jyoti Resins & Adhesives's WACC % is 12.23%. Jyoti Resins & Adhesives's ROIC % is 37.29% (calculated using TTM income statement data).
Jyoti Resins & Adhesives generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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, Jyoti Resins & Adhesives's WACC % is 12.23%. Jyoti Resins & Adhesives's ROIC % is 37.29% (calculated using TTM income statement data).
Jyoti Resins & Adhesives generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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.
* 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 Specialty Chemicals subindustry, Jyoti Resins & Adhesives'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.
Jyoti Resins & Adhesives ROIC % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Jyoti Resins & Adhesives's ROIC % distribution charts can be found below:
* The bar in red indicates where Jyoti Resins & Adhesives'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.
Jyoti Resins & Adhesives (BOM:514448) has a ROIC % of 32.34% 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 Jyoti Resins & Adhesives and its competitors.
Is Jyoti Resins & Adhesives' ROIC % too high?
Jyoti Resins & Adhesives' current ROIC % is 32.34%. The Chemicals industry median ROIC % is 4.47. Jyoti Resins & Adhesives' value of 32.34% is 623.5% above this industry median. Overall, Jyoti Resins & Adhesives has a GF Score™ of 82/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Jyoti Resins & Adhesives' ROIC % compare to LIN and SHW?
Jyoti Resins & Adhesives' ROIC % of 32.34% can be compared against companies in the Chemicals industry. The industry median ROIC % is 4.47. Jyoti Resins & Adhesives' value of 32.34% is 623.5% 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 Chemicals company?
The median ROIC % among Chemicals companies is 4.47, based on 1,575 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. Jyoti Resins & Adhesives's current ROIC % of 32.34% is 623.5% 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 Jyoti Resins & Adhesives and its competitors. For the Chemicals industry, the median ROIC % is 4.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Jyoti Resins & Adhesives's current ROIC % is 32.34%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Jyoti Resins & Adhesives stock overvalued right now?
Based on GuruFocus' analysis, Jyoti Resins & Adhesives (BOM:514448) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹1,751.87, compared to a current price of ₹996.35 — trading 43.1% below its estimated fair value. The current ROIC % is 32.34% and 623.5% above the Chemicals industry median of 4.47. Jyoti Resins & Adhesives' overall GF Score™ is 82/100 with 2 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 Jyoti Resins & Adhesives (BOM:514448), the current ROIC % is 32.34% 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 Jyoti Resins & Adhesives (BOM:514448) Overvalued in 2026?
Based on GuruFocus' analysis, Jyoti Resins & Adhesives stock appears to be undervalued.
The current stock price of ₹996.35 is trading 43.1% below its estimated GF Value™ of ₹1,751.87.
GuruFocus considers Jyoti Resins & Adhesives to be Significantly Undervalued.
Key valuation signals for BOM:514448:
ROIC %: 32.34%
GF Value™: ₹1,751.87 vs. price of ₹996.35 (43.1% below fair value)
Industry Position: 623.5% above the Chemicals median
No single metric tells the full story. See the BOM:514448 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Jyoti Resins & Adhesives Ltd is in the business of production of Wood Adhesives which are widely used in the fast-moving consumer market on days. The company has launched Euro 7000 under which it manufactures many types of wood adhesives. Some of its products include Euro 7000 Xtra, Euro WP, Euro Extreme3, Euro Ultra, and Euro PVC Glue.
82GF Score
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