ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Karnawati Innovation's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 89.72%.
As of today (2026-07-09), Karnawati Innovation's WACC % is 24.02%. Karnawati Innovation's ROIC % is 134.11% (calculated using TTM income statement data).
Karnawati Innovation 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, Karnawati Innovation's WACC % is 24.02%. Karnawati Innovation's ROIC % is 134.11% (calculated using TTM income statement data).
Karnawati Innovation 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 Packaging & Containers subindustry, Karnawati Innovation'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.
Karnawati Innovation ROIC % vs Packaging & Containers Industry
For the Packaging & Containers industry and Consumer Cyclical sector, Karnawati Innovation's ROIC % distribution charts can be found below:
* The bar in red indicates where Karnawati Innovation's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Dec. 2025) 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.
Karnawati Innovation (BOM:531671) has a ROIC % of 89.72% as of Dec. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Karnawati Innovation and its competitors.
Is Karnawati Innovation's ROIC % too high?
Karnawati Innovation's current ROIC % is 89.72%. The Packaging & Containers industry median ROIC % is 4.25. Karnawati Innovation's value of 89.72% is 2011.1% above this industry median. Overall, Karnawati Innovation has a GF Score™ of 51/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Karnawati Innovation's ROIC % compare to SW and PKG?
Karnawati Innovation's ROIC % of 89.72% can be compared against companies in the Packaging & Containers industry. The industry median ROIC % is 4.25. Karnawati Innovation's value of 89.72% is 2011.1% 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 Packaging & Containers company?
The median ROIC % among Packaging & Containers companies is 4.25, based on 395 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. Karnawati Innovation's current ROIC % of 89.72% is 2011.1% 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 Karnawati Innovation and its competitors. For the Packaging & Containers industry, the median ROIC % is 4.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Karnawati Innovation's current ROIC % is 89.72%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Karnawati Innovation stock overvalued right now?
Based on GuruFocus' analysis, Karnawati Innovation (BOM:531671) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹56.39, compared to a current price of ₹1.21 — trading 97.9% below its estimated fair value. The current ROIC % is 89.72% and 2011.1% above the Packaging & Containers industry median of 4.25. Karnawati Innovation's overall GF Score™ is 51/100 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 Karnawati Innovation (BOM:531671), the current ROIC % is 89.72% as of Dec. 2025. 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 Karnawati Innovation (BOM:531671) Overvalued in 2026?
Based on GuruFocus' analysis, Karnawati Innovation stock appears to be undervalued.
The current stock price of ₹1.21 is trading 97.9% below its estimated GF Value™ of ₹56.39.
GuruFocus considers Karnawati Innovation to be Significantly Undervalued.
Key valuation signals for BOM:531671:
ROIC %: 89.72%
GF Value™: ₹56.39 vs. price of ₹1.21 (97.9% below fair value)
Industry Position: 2011.1% above the Packaging & Containers median
No single metric tells the full story. See the BOM:531671 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Karnawati Innovation Ltd is engaged in the production of mineral water bottles and job work for PET bottles, mainly used for bottling liquor and products having gaseous contents. It serves pharmaceutical companies, FMCG companies, and bottling industries.
51GF Score
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