ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Sharp Investments's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 3.69%.
As of today (2026-07-12), Sharp Investments's WACC % is 12.68%. Sharp Investments's ROIC % is 0.26% (calculated using TTM income statement data).
Sharp Investments earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Sharp Investments (BOM:538212) 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, Sharp Investments's WACC % is 12.68%. Sharp Investments's ROIC % is 0.26% (calculated using TTM income statement data).
Sharp Investments 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.
Sharp Investments ROIC % Related Terms
Sharp Investments ROIC % Historical Data
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The historical data trend for Sharp Investments'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 Credit Services subindustry, Sharp Investments'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.
Sharp Investments ROIC % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Sharp Investments's ROIC % distribution charts can be found below:
* The bar in red indicates where Sharp Investments'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.
Sharp Investments (BOM:538212) has a ROIC % of 3.69% 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 Sharp Investments and its competitors.
Is Sharp Investments' ROIC % too high?
Sharp Investments' current ROIC % is 3.69%. The Credit Services industry median ROIC % is 1.98. Sharp Investments' value of 3.69% is 86.8% above this industry median. Overall, Sharp Investments has a GF Score™ of 46/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Sharp Investments' ROIC % compare to V and MA?
Sharp Investments' ROIC % of 3.69% can be compared against companies in the Credit Services industry. The industry median ROIC % is 1.98. Sharp Investments' value of 3.69% is 86.8% 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 Credit Services company?
The median ROIC % among Credit Services companies is 1.98, based on 418 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. Sharp Investments's current ROIC % of 3.69% is 86.8% 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 Sharp Investments and its competitors. For the Credit Services industry, the median ROIC % is 1.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sharp Investments's current ROIC % is 3.69%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sharp Investments stock overvalued right now?
Based on GuruFocus' analysis, Sharp Investments (BOM:538212) is currently considered Possible Value Trap. The stock's GF Value™ is ₹0.96, compared to a current price of ₹0.39 — trading 59.4% below its estimated fair value. The current ROIC % is 3.69% and 86.8% above the Credit Services industry median of 1.98. Sharp Investments' overall GF Score™ is 46/100 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 Sharp Investments (BOM:538212), the current ROIC % is 3.69% 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 Sharp Investments (BOM:538212) Overvalued in 2026?
Based on GuruFocus' analysis, Sharp Investments stock appears to be undervalued.
The current stock price of ₹0.39 is trading 59.4% below its estimated GF Value™ of ₹0.96.
GuruFocus considers Sharp Investments to be Possible Value Trap.
Key valuation signals for BOM:538212:
ROIC %: 3.69%
GF Value™: ₹0.96 vs. price of ₹0.39 (59.4% below fair value)
Industry Position: 86.8% above the Credit Services median
No single metric tells the full story. See the BOM:538212 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sharp Investments Ltd operates as a non-banking financial services company. The company is focused on providing corporate loans, personal loans, loans against shares and securities, and loans against properties. In addition, it is also engaged in the trading of shares and securities and the arbitrage business in the stock and commodity markets. The company serves financial services such as working capital loans and loans to commercial, industrial, and financial clients. Being an NBFC, the Company has positioned itself between the organized banking sector and local money lenders, offering the customers competitive, flexible, and timely lending services.
46GF Score
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