ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Eimco Elecon India's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2026 was 7.82%.
As of today (2026-07-10), Eimco Elecon India's WACC % is 14.97%. Eimco Elecon India's ROIC % is 6.03% (calculated using TTM income statement data).
Eimco Elecon India earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Eimco Elecon India (BOM:523708) ROIC % Explanation
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, Eimco Elecon India's WACC % is 14.97%. Eimco Elecon India's ROIC % is 6.03% (calculated using TTM income statement data).
Eimco Elecon India 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.
Eimco Elecon India ROIC % Related Terms
Eimco Elecon India ROIC % Historical Data
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The historical data trend for Eimco Elecon India'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 Farm & Heavy Construction Machinery subindustry, Eimco Elecon India'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.
Eimco Elecon India ROIC % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Eimco Elecon India's ROIC % distribution charts can be found below:
* The bar in red indicates where Eimco Elecon India's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Jun. 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.
Eimco Elecon India (BOM:523708) has a ROIC % of 7.82% as of Jun. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Eimco Elecon India and its competitors.
Is Eimco Elecon India's ROIC % too high?
Eimco Elecon India's current ROIC % is 7.82%. The Farm & Heavy Construction Machinery industry median ROIC % is 5.60. Eimco Elecon India's value of 7.82% is 39.6% above this industry median. Overall, Eimco Elecon India has a GF Score™ of 77/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Eimco Elecon India's ROIC % compare to CAT and DE?
Eimco Elecon India's ROIC % of 7.82% can be compared against companies in the Farm & Heavy Construction Machinery industry. The industry median ROIC % is 5.60. Eimco Elecon India's value of 7.82% is 39.6% 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 Farm & Heavy Construction Machinery company?
The median ROIC % among Farm & Heavy Construction Machinery companies is 5.60, based on 207 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. Eimco Elecon India's current ROIC % of 7.82% is 39.6% 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 Eimco Elecon India and its competitors. For the Farm & Heavy Construction Machinery industry, the median ROIC % is 5.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Eimco Elecon India's current ROIC % is 7.82%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Eimco Elecon India stock overvalued right now?
Based on GuruFocus' analysis, Eimco Elecon India (BOM:523708) is currently considered Fairly Valued. The stock's GF Value™ is ₹1,880.19, compared to a current price of ₹1,743.90 — trading 7.2% below its estimated fair value. The current ROIC % is 7.82% and 39.6% above the Farm & Heavy Construction Machinery industry median of 5.60. Eimco Elecon India's overall GF Score™ is 77/100 with 5 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 Eimco Elecon India (BOM:523708), the current ROIC % is 7.82% 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 Eimco Elecon India (BOM:523708) Overvalued in 2026?
Based on GuruFocus' analysis, Eimco Elecon India stock appears to be undervalued.
The current stock price of ₹1,743.90 is trading 7.2% below its estimated GF Value™ of ₹1,880.19.
GuruFocus considers Eimco Elecon India to be Fairly Valued.
Key valuation signals for BOM:523708:
ROIC %: 7.82%
GF Value™: ₹1,880.19 vs. price of ₹1,743.90 (7.2% below fair value)
Industry Position: 39.6% above the Farm & Heavy Construction Machinery median
No single metric tells the full story. See the BOM:523708 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Eimco Elecon India Ltd is engaged in the business of manufacturing and supplying equipment for the mining and construction sector. Its products include Load Haul Dumpers (LHDs), Side Dump Loaders, Coal Haulers, Drilling Equipment, Continuous Miner Package, Chair Lift Man Riding System, UV-A-BE (Fully Battery Operated - Multi Utility Vehicle), and MCAR-E (Fully Battery Operated - Passenger Vehicle). The company operates in one segment, Machinery and Spares. It sells its products in India, which generates the majority of revenue, and also exports them to other countries.
77GF Score
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ROIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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