ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Vasundhara Rasayans's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 20.59%.
As of today (2026-07-12), Vasundhara Rasayans's WACC % is 11.87%. Vasundhara Rasayans's ROIC % is 10.56% (calculated using TTM income statement data).
Vasundhara Rasayans earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, Vasundhara Rasayans's WACC % is 11.87%. Vasundhara Rasayans's ROIC % is 10.56% (calculated using TTM income statement data).
Vasundhara Rasayans 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.
Vasundhara Rasayans ROIC % Related Terms
Vasundhara Rasayans ROIC % Historical Data
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The historical data trend for Vasundhara Rasayans'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 Chemicals subindustry, Vasundhara Rasayans'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.
Vasundhara Rasayans ROIC % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Vasundhara Rasayans's ROIC % distribution charts can be found below:
* The bar in red indicates where Vasundhara Rasayans'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.
Vasundhara Rasayans (BOM:538634) has a ROIC % of 20.59% 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 Vasundhara Rasayans and its competitors.
Is Vasundhara Rasayans' ROIC % too high?
Vasundhara Rasayans' current ROIC % is 20.59%. The Chemicals industry median ROIC % is 4.48. Vasundhara Rasayans' value of 20.59% is 359.6% above this industry median. Overall, Vasundhara Rasayans has a GF Score™ of 85/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Vasundhara Rasayans' ROIC % compare to DOW?
Vasundhara Rasayans' ROIC % of 20.59% can be compared against companies in the Chemicals industry. The industry median ROIC % is 4.48. Vasundhara Rasayans' value of 20.59% is 359.6% 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 Chemicals company?
The median ROIC % among Chemicals companies is 4.48, based on 1,577 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. Vasundhara Rasayans's current ROIC % of 20.59% is 359.6% 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 Vasundhara Rasayans and its competitors. For the Chemicals industry, the median ROIC % is 4.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vasundhara Rasayans's current ROIC % is 20.59%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vasundhara Rasayans stock overvalued right now?
Based on GuruFocus' analysis, Vasundhara Rasayans (BOM:538634) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹207.07, compared to a current price of ₹174.90 — trading 15.5% below its estimated fair value. The current ROIC % is 20.59% and 359.6% above the Chemicals industry median of 4.48. Vasundhara Rasayans' overall GF Score™ is 85/100 with 4 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 Vasundhara Rasayans (BOM:538634), the current ROIC % is 20.59% 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 Vasundhara Rasayans (BOM:538634) Overvalued in 2026?
Based on GuruFocus' analysis, Vasundhara Rasayans stock appears to be undervalued.
The current stock price of ₹174.90 is trading 15.5% below its estimated GF Value™ of ₹207.07.
GuruFocus considers Vasundhara Rasayans to be Modestly Undervalued.
Key valuation signals for BOM:538634:
ROIC %: 20.59%
GF Value™: ₹207.07 vs. price of ₹174.90 (15.5% below fair value)
Industry Position: 359.6% above the Chemicals median
No single metric tells the full story. See the BOM:538634 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Vasundhara Rasayans Ltd is the manufacturer and exporter of antacids therapeutic category of active pharmaceutical ingredients (API). The company operates through two segments, namely Export and Domestic. Its products consist of antacid API, which includes dried aluminum hydroxide gel, magaldrate, aluminum hydroxide pate, and many more. The company's products are offered in various forms such as paste, powder, and micronized grade powder. Additionally, it caters to and provides technical backup support to many industries, including pharmaceutical, food, and chemical. Geographically, the company generates the majority of its revenue from the domestic market.
85GF Score
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