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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 %. Sadbhav Infrastructure Projects's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 3.71%.
As of today (2026-07-24), Sadbhav Infrastructure Projects's WACC % is 6.71%. Sadbhav Infrastructure Projects's ROIC % is 4.86% (calculated using TTM income statement data).
Sadbhav Infrastructure Projects 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, Sadbhav Infrastructure Projects's WACC % is 6.71%. Sadbhav Infrastructure Projects's ROIC % is 4.86% (calculated using TTM income statement data).
Sadbhav Infrastructure Projects 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.
Sadbhav Infrastructure Projects ROIC % Related Terms
Sadbhav Infrastructure Projects ROIC % Historical Data
* 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 Engineering & Construction subindustry, Sadbhav Infrastructure Projects'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.
Sadbhav Infrastructure Projects ROIC % vs Construction Industry
For the Construction industry and Industrials sector, Sadbhav Infrastructure Projects's ROIC % distribution charts can be found below:
* The bar in red indicates where Sadbhav Infrastructure Projects'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.
Sadbhav Infrastructure Projects (BOM:539346) has a ROIC % of 3.71% 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 Sadbhav Infrastructure Projects and its competitors.
Is Sadbhav Infrastructure Projects' ROIC % too high?
Sadbhav Infrastructure Projects' current ROIC % is 3.71%. The Construction industry median ROIC % is 4.67. Sadbhav Infrastructure Projects' value of 3.71% is 20.6% below this industry median. Overall, Sadbhav Infrastructure Projects has a GF Score™ of 54/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Sadbhav Infrastructure Projects' ROIC % compare to PWR and FIX?
Sadbhav Infrastructure Projects' ROIC % of 3.71% can be compared against companies in the Construction industry. The industry median ROIC % is 4.67. Sadbhav Infrastructure Projects' value of 3.71% is 20.6% 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 Construction company?
The median ROIC % among Construction companies is 4.67, based on 1,758 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. Sadbhav Infrastructure Projects's current ROIC % of 3.71% is 20.6% 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 Sadbhav Infrastructure Projects and its competitors. For the Construction industry, the median ROIC % is 4.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sadbhav Infrastructure Projects's current ROIC % is 3.71%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sadbhav Infrastructure Projects stock overvalued right now?
Based on GuruFocus' analysis, Sadbhav Infrastructure Projects (BOM:539346) is currently considered Possible Value Trap. The stock's GF Value™ is ₹5.09, compared to a current price of ₹2.24 — trading 56% below its estimated fair value. The current ROIC % is 3.71% and 20.6% below the Construction industry median of 4.67. Sadbhav Infrastructure Projects' overall GF Score™ is 54/100 with 5 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 Sadbhav Infrastructure Projects (BOM:539346), the current ROIC % is 3.71% 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 Sadbhav Infrastructure Projects (BOM:539346) Overvalued in 2026?
Based on GuruFocus' analysis, Sadbhav Infrastructure Projects stock appears to be undervalued.
The current stock price of ₹2.24 is trading 56% below its estimated GF Value™ of ₹5.09.
GuruFocus considers Sadbhav Infrastructure Projects to be Possible Value Trap.
Key valuation signals for BOM:539346:
ROIC %: 3.71%
GF Value™: ₹5.09 vs. price of ₹2.24 (56% below fair value)
Industry Position: 20.6% below the Construction median
No single metric tells the full story. See the BOM:539346 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sadbhav Infrastructure Projects Business Description
Sadbhav Infrastructure Projects Ltd is an India-based company engaged in the development, construction, operation, and maintenance of infrastructure projects and related consulting and advisory services. Geographically, it operates only in India. Some of its projects include Ahmedabad Ring Road Infrastructure Limited; Aurangabad Jalna Tollway Limited; Hyderabad Yadgiri Tollway Private Limited, Bhilwara Rajsamand Tollway Private Limited, and others. The company earns a majority of its revenue from operation and maintenance and project management services.
54GF Score
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