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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 %. Shivam Autotech's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 1.18%.
As of today (2026-07-23), Shivam Autotech's WACC % is 20.15%. Shivam Autotech's ROIC % is -0.73% (calculated using TTM income statement data).
Shivam Autotech earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Shivam Autotech (BOM:532776) 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, Shivam Autotech's WACC % is 20.15%. Shivam Autotech's ROIC % is -0.73% (calculated using TTM income statement data).
Shivam Autotech 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.
Shivam Autotech ROIC % Related Terms
Shivam Autotech ROIC % Historical Data
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The historical data trend for Shivam Autotech'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 Auto Parts subindustry, Shivam Autotech'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.
Shivam Autotech ROIC % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Shivam Autotech's ROIC % distribution charts can be found below:
* The bar in red indicates where Shivam Autotech'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.
Shivam Autotech (BOM:532776) has a ROIC % of 1.18% 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 Shivam Autotech and its competitors.
Is Shivam Autotech's ROIC % too high?
Shivam Autotech's current ROIC % is 1.18%. The Vehicles & Parts industry median ROIC % is 5.09. Shivam Autotech's value of 1.18% is 76.8% below this industry median. Overall, Shivam Autotech has a GF Score™ of 50/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Shivam Autotech's ROIC % compare to ORLY and AZO?
Shivam Autotech's ROIC % of 1.18% can be compared against companies in the Vehicles & Parts industry. The industry median ROIC % is 5.09. Shivam Autotech's value of 1.18% is 76.8% below 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 Vehicles & Parts company?
The median ROIC % among Vehicles & Parts companies is 5.09, based on 1,309 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. Shivam Autotech's current ROIC % of 1.18% is 76.8% below 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 Shivam Autotech and its competitors. For the Vehicles & Parts industry, the median ROIC % is 5.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shivam Autotech's current ROIC % is 1.18%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shivam Autotech stock overvalued right now?
Based on GuruFocus' analysis, Shivam Autotech (BOM:532776) is currently considered Possible Value Trap. The stock's GF Value™ is ₹27.30, compared to a current price of ₹17.34 — trading 36.5% below its estimated fair value. The current ROIC % is 1.18% and 76.8% below the Vehicles & Parts industry median of 5.09. Shivam Autotech's overall GF Score™ is 50/100 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 Shivam Autotech (BOM:532776), the current ROIC % is 1.18% 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 Shivam Autotech (BOM:532776) Overvalued in 2026?
Based on GuruFocus' analysis, Shivam Autotech stock appears to be undervalued.
The current stock price of ₹17.34 is trading 36.5% below its estimated GF Value™ of ₹27.30.
GuruFocus considers Shivam Autotech to be Possible Value Trap.
Key valuation signals for BOM:532776:
ROIC %: 1.18%
GF Value™: ₹27.30 vs. price of ₹17.34 (36.5% below fair value)
Industry Position: 76.8% below the Vehicles & Parts median
No single metric tells the full story. See the BOM:532776 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shivam Autotech Ltd is a manufacturer of transmission gears and shafts in India. The company produces a variety of auto transmission components mainly for Original Equipment Manufacturers (OEMs). Its product portfolio includes various types of transmission gears, transmission shafts, spline shafts, plungers, power train components, and employing cold. warm, and hot forging techniques. Geographically, the company caters to both the Indian and the international markets of which, a majority of its revenue is derived from its business in India.
50GF Score
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