ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Denis Chem Lab's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 1.57%.
As of today (2026-07-12), Denis Chem Lab's WACC % is 16.59%. Denis Chem Lab's ROIC % is 10.91% (calculated using TTM income statement data).
Denis Chem Lab earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Denis Chem Lab (BOM:537536) 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, Denis Chem Lab's WACC % is 16.59%. Denis Chem Lab's ROIC % is 10.91% (calculated using TTM income statement data).
Denis Chem Lab 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.
Denis Chem Lab ROIC % Related Terms
Denis Chem Lab ROIC % Historical Data
* Premium members only.
The historical data trend for Denis Chem Lab'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 Drug Manufacturers - Specialty & Generic subindustry, Denis Chem Lab'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.
Denis Chem Lab ROIC % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Denis Chem Lab's ROIC % distribution charts can be found below:
* The bar in red indicates where Denis Chem Lab'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.
Denis Chem Lab (BOM:537536) has a ROIC % of 1.57% 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 Denis Chem Lab and its competitors.
Is Denis Chem Lab's ROIC % too high?
Denis Chem Lab's current ROIC % is 1.57%. The Drug Manufacturers industry median ROIC % is 4.49. Denis Chem Lab's value of 1.57% is 65% below this industry median. Overall, Denis Chem Lab has a GF Score™ of 81/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Denis Chem Lab's ROIC % compare to ZTS and UTHR?
Denis Chem Lab's ROIC % of 1.57% can be compared against companies in the Drug Manufacturers industry. The industry median ROIC % is 4.49. Denis Chem Lab's value of 1.57% is 65% 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 Drug Manufacturers company?
The median ROIC % among Drug Manufacturers companies is 4.49, based on 990 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. Denis Chem Lab's current ROIC % of 1.57% is 65% 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 Denis Chem Lab and its competitors. For the Drug Manufacturers industry, the median ROIC % is 4.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Denis Chem Lab's current ROIC % is 1.57%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Denis Chem Lab stock overvalued right now?
Based on GuruFocus' analysis, Denis Chem Lab (BOM:537536) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹118.47, compared to a current price of ₹76.22 — trading 35.7% below its estimated fair value. The current ROIC % is 1.57% and 65% below the Drug Manufacturers industry median of 4.49. Denis Chem Lab's overall GF Score™ is 81/100 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 Denis Chem Lab (BOM:537536), the current ROIC % is 1.57% 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 Denis Chem Lab (BOM:537536) Overvalued in 2026?
Based on GuruFocus' analysis, Denis Chem Lab stock appears to be undervalued.
The current stock price of ₹76.22 is trading 35.7% below its estimated GF Value™ of ₹118.47.
GuruFocus considers Denis Chem Lab to be Significantly Undervalued.
Key valuation signals for BOM:537536:
ROIC %: 1.57%
GF Value™: ₹118.47 vs. price of ₹76.22 (35.7% below fair value)
Industry Position: 65% below the Drug Manufacturers median
No single metric tells the full story. See the BOM:537536 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Denis Chem Lab Ltd is a pharmaceutical company involved in the manufacturing of pharmaceutical products. The company offers sterile intravenous injectables for human and veterinary use for different therapeutic areas. Its product portfolio includes antibiotic injections, diuretic injections, parenteral amino acid injections, plasma volume expanders, anti-pyretic Inj. irrigation solutions and dialysis solutions. The company has only one reportable segment which is Manufacturing, and Sales of Transfusion Solution in Bottles It generates its revenues through the sale of transfusion solution in bottles.
81GF Score
Get the complete analysis for BOM:537536
ROIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
BOM:537536 has been successfully added to your 
