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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 %. Hemang Resources's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was -7.20%.
As of today (2026-07-19), Hemang Resources's WACC % is 16.11%. Hemang Resources's ROIC % is -3.15% (calculated using TTM income statement data).
Hemang Resources earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Hemang Resources (BOM:531178) 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, Hemang Resources's WACC % is 16.11%. Hemang Resources's ROIC % is -3.15% (calculated using TTM income statement data).
Hemang Resources 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.
Hemang Resources ROIC % Related Terms
Hemang Resources ROIC % Historical Data
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The historical data trend for Hemang Resources'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 Thermal Coal subindustry, Hemang Resources'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.
Hemang Resources ROIC % vs Other Energy Sources Industry
For the Other Energy Sources industry and Energy sector, Hemang Resources's ROIC % distribution charts can be found below:
* The bar in red indicates where Hemang Resources'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.
Hemang Resources (BOM:531178) has a ROIC % of -7.20% 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 Hemang Resources and its competitors.
Is Hemang Resources' ROIC % too high?
Hemang Resources' current ROIC % is -7.20%. Overall, Hemang Resources has a GF Score™ of 58/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hemang Resources' ROIC % compare to CNR?
Hemang Resources' ROIC % of -7.20% can be compared against companies in the Other Energy Sources industry. 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 Other Energy Sources company?
A good ROIC % depends on the Other Energy Sources industry context. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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 Hemang Resources and its competitors. Hemang Resources's current ROIC % is -7.20%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hemang Resources stock overvalued right now?
Based on GuruFocus' analysis, Hemang Resources (BOM:531178) is currently considered Fairly Valued. The stock's GF Value™ is ₹14.44, compared to a current price of ₹13.76 — trading 4.7% below its estimated fair value. The current ROIC % is -7.20%. Hemang Resources' overall GF Score™ is 58/100 with 3 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 Hemang Resources (BOM:531178), the current ROIC % is -7.20% 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 Hemang Resources (BOM:531178) Overvalued in 2026?
Based on GuruFocus' analysis, Hemang Resources stock appears to be undervalued.
The current stock price of ₹13.76 is trading 4.7% below its estimated GF Value™ of ₹14.44.
GuruFocus considers Hemang Resources to be Fairly Valued.
Key valuation signals for BOM:531178:
ROIC %: -7.20%
GF Value™: ₹14.44 vs. price of ₹13.76 (4.7% below fair value)
No single metric tells the full story. See the BOM:531178 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hemang Resources Ltd is a company principally engaged in coal trading, stevedoring, logistic services, and land trading. The company's operating segments consist of the Coal Trading Division and the Infrastructure Division. The Coal Trading Division focuses on trading both imported and indigenous coal, selling to various industries in India. The Infrastructure Division operates in the real estate sector. The company generates the majority of its revenue from the sale of imported coal within the Coal Trading Division segment.
58GF Score
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