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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 %. Acknit Industries's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 9.54%.
As of today (2026-07-14), Acknit Industries's WACC % is 7.73%. Acknit Industries's ROIC % is 6.79% (calculated using TTM income statement data).
Acknit Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Acknit Industries (BOM:530043) 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, Acknit Industries's WACC % is 7.73%. Acknit Industries's ROIC % is 6.79% (calculated using TTM income statement data).
Acknit Industries 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.
Acknit Industries ROIC % Related Terms
Acknit Industries ROIC % Historical Data
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The historical data trend for Acknit Industries'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 Footwear & Accessories subindustry, Acknit Industries'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.
Acknit Industries ROIC % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Acknit Industries's ROIC % distribution charts can be found below:
* The bar in red indicates where Acknit Industries'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.
Acknit Industries (BOM:530043) has a ROIC % of 9.54% 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 Acknit Industries and its competitors.
Is Acknit Industries' ROIC % too high?
Acknit Industries' current ROIC % is 9.54%. The Manufacturing - Apparel & Accessories industry median ROIC % is 2.91. Acknit Industries' value of 9.54% is 227.8% above this industry median. Overall, Acknit Industries has a GF Score™ of 70/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Acknit Industries' ROIC % compare to NKE and DECK?
Acknit Industries' ROIC % of 9.54% can be compared against companies in the Manufacturing - Apparel & Accessories industry. The industry median ROIC % is 2.91. Acknit Industries' value of 9.54% is 227.8% 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 Manufacturing - Apparel & Accessories company?
The median ROIC % among Manufacturing - Apparel & Accessories companies is 2.91, based on 1,043 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. Acknit Industries's current ROIC % of 9.54% is 227.8% 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 Acknit Industries and its competitors. For the Manufacturing - Apparel & Accessories industry, the median ROIC % is 2.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Acknit Industries's current ROIC % is 9.54%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Acknit Industries stock overvalued right now?
Based on GuruFocus' analysis, Acknit Industries (BOM:530043) is currently considered Fairly Valued. The stock's GF Value™ is ₹294.77, compared to a current price of ₹307.45 — trading 4.3% above its estimated fair value. The current ROIC % is 9.54% and 227.8% above the Manufacturing - Apparel & Accessories industry median of 2.91. Acknit Industries' overall GF Score™ is 70/100 with 8 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 Acknit Industries (BOM:530043), the current ROIC % is 9.54% 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 Acknit Industries (BOM:530043) Overvalued in 2026?
Based on GuruFocus' analysis, Acknit Industries stock appears to be overvalued.
The current stock price of ₹307.45 is trading 4.3% above its estimated GF Value™ of ₹294.77.
GuruFocus considers Acknit Industries to be Fairly Valued.
Key valuation signals for BOM:530043:
ROIC %: 9.54%
GF Value™: ₹294.77 vs. price of ₹307.45 (4.3% above fair value)
Industry Position: 227.8% above the Manufacturing - Apparel & Accessories median
No single metric tells the full story. See the BOM:530043 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Acknit Industries Ltd manufactures all types of garments, gloves, and other apparel products. The company operates through four segments namely Hand gloves, Garments, Other & traded items, and the Power generation segment. Majority of the firm's revenue derives from the Hand Gloves segment which consists of cut and sewn dipped gloves, seamless dipped gloves, Canadian/ welder/ driver gloves, Cut resistant gloves, heat resistant gloves, and kevlar leather gloves.
70GF Score
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