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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 %. Universal Starch-Chem Allied's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 23.92%.
As of today (2026-08-04), Universal Starch-Chem Allied's WACC % is 8.08%. Universal Starch-Chem Allied's ROIC % is 9.86% (calculated using TTM income statement data).
Universal Starch-Chem Allied 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, Universal Starch-Chem Allied's WACC % is 8.08%. Universal Starch-Chem Allied's ROIC % is 9.86% (calculated using TTM income statement data).
Universal Starch-Chem Allied 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.
Universal Starch-Chem Allied ROIC % Related Terms
Universal Starch-Chem Allied 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 Agricultural Inputs subindustry, Universal Starch-Chem Allied'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.
Universal Starch-Chem Allied ROIC % vs Agriculture Industry
For the Agriculture industry and Basic Materials sector, Universal Starch-Chem Allied's ROIC % distribution charts can be found below:
* The bar in red indicates where Universal Starch-Chem Allied'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.
Universal Starch-Chem Allied (BOM:524408) has a ROIC % of 23.92% 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 Universal Starch-Chem Allied and its competitors.
Is Universal Starch-Chem Allied's ROIC % too high?
Universal Starch-Chem Allied's current ROIC % is 23.92%. The Agriculture industry median ROIC % is 5.23. Universal Starch-Chem Allied's value of 23.92% is 357.4% above this industry median. Overall, Universal Starch-Chem Allied has a GF Score™ of 58/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Universal Starch-Chem Allied's ROIC % compare to CTVA and CF?
Universal Starch-Chem Allied's ROIC % of 23.92% can be compared against companies in the Agriculture industry. The industry median ROIC % is 5.23. Universal Starch-Chem Allied's value of 23.92% is 357.4% 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 an Agriculture company?
The median ROIC % among Agriculture companies is 5.23, based on 257 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. Universal Starch-Chem Allied's current ROIC % of 23.92% is 357.4% 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 Universal Starch-Chem Allied and its competitors. For the Agriculture industry, the median ROIC % is 5.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Universal Starch-Chem Allied's current ROIC % is 23.92%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Universal Starch-Chem Allied stock overvalued right now?
Based on GuruFocus' analysis, Universal Starch-Chem Allied (BOM:524408) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹159.31, compared to a current price of ₹199.00 — trading 24.9% above its estimated fair value. The current ROIC % is 23.92% and 357.4% above the Agriculture industry median of 5.23. Universal Starch-Chem Allied's overall GF Score™ is 58/100 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 Universal Starch-Chem Allied (BOM:524408), the current ROIC % is 23.92% 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 Universal Starch-Chem Allied (BOM:524408) Overvalued in 2026?
Based on GuruFocus' analysis, Universal Starch-Chem Allied stock appears to be overvalued.
The current stock price of ₹199.00 is trading 24.9% above its estimated GF Value™ of ₹159.31.
GuruFocus considers Universal Starch-Chem Allied to be Modestly Overvalued.
Key valuation signals for BOM:524408:
ROIC %: 23.92%
GF Value™: ₹159.31 vs. price of ₹199.00 (24.9% above fair value)
Industry Position: 357.4% above the Agriculture median
No single metric tells the full story. See the BOM:524408 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Universal Starch-Chem Allied Ltd is a manufacturer and exporter specializing in maize starch and its derivatives. The company operates in maize refining, producing products like starch powder, liquid glucose, dextrose monohydrate, dextrose anhydrous, and modified starches which serve various industries such as food, pharmaceuticals, textiles, paper, and adhesives. The company's operations are principally based in Maharashtra, India. Revenue is generated through the manufacturing and export of these starch-based products to a diverse set of domestic and international customers. Alongside its core starch business, the company engages in activities related to energy and environmental management, including bio-gas production and power generation via wind and co-generation plants.
58GF Score
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