ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Guru Krupa Gems and Jewellery's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 0.61%.
As of today (2026-07-09), Guru Krupa Gems and Jewellery's WACC % is 9.00%. Guru Krupa Gems and Jewellery's ROIC % is 2.11% (calculated using TTM income statement data).
Guru Krupa Gems and Jewellery earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Guru Krupa Gems and Jewellery (BOM:540545) 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, Guru Krupa Gems and Jewellery's WACC % is 9.00%. Guru Krupa Gems and Jewellery's ROIC % is 2.11% (calculated using TTM income statement data).
Guru Krupa Gems and Jewellery 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.
Guru Krupa Gems and Jewellery ROIC % Related Terms
Guru Krupa Gems and Jewellery 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 Luxury Goods subindustry, Guru Krupa Gems and Jewellery'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.
Guru Krupa Gems and Jewellery ROIC % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Guru Krupa Gems and Jewellery's ROIC % distribution charts can be found below:
* The bar in red indicates where Guru Krupa Gems and Jewellery'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.
Guru Krupa Gems and Jewellery (BOM:540545) has a ROIC % of 0.61% 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 Guru Krupa Gems and Jewellery and its competitors.
Is Guru Krupa Gems and Jewellery's ROIC % too high?
Guru Krupa Gems and Jewellery's current ROIC % is 0.61%. The Retail - Cyclical industry median ROIC % is 4.36. Guru Krupa Gems and Jewellery's value of 0.61% is 86% below this industry median. Overall, Guru Krupa Gems and Jewellery has a GF Score™ of 55/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Guru Krupa Gems and Jewellery's ROIC % compare to TPR?
Guru Krupa Gems and Jewellery's ROIC % of 0.61% can be compared against companies in the Retail - Cyclical industry. The industry median ROIC % is 4.36. Guru Krupa Gems and Jewellery's value of 0.61% is 86% 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 Retail - Cyclical company?
The median ROIC % among Retail - Cyclical companies is 4.36, based on 1,104 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. Guru Krupa Gems and Jewellery's current ROIC % of 0.61% is 86% 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 Guru Krupa Gems and Jewellery and its competitors. For the Retail - Cyclical industry, the median ROIC % is 4.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Guru Krupa Gems and Jewellery's current ROIC % is 0.61%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Guru Krupa Gems and Jewellery stock overvalued right now?
Based on GuruFocus' analysis, Guru Krupa Gems and Jewellery (BOM:540545) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹4.56, compared to a current price of ₹35.89 — trading 687.1% above its estimated fair value. The current ROIC % is 0.61% and 86% below the Retail - Cyclical industry median of 4.36. Guru Krupa Gems and Jewellery's overall GF Score™ is 55/100 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 Guru Krupa Gems and Jewellery (BOM:540545), the current ROIC % is 0.61% 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 Guru Krupa Gems and Jewellery (BOM:540545) Overvalued in 2026?
Based on GuruFocus' analysis, Guru Krupa Gems and Jewellery stock appears to be overvalued.
The current stock price of ₹35.89 is trading 687.1% above its estimated GF Value™ of ₹4.56.
GuruFocus considers Guru Krupa Gems and Jewellery to be Significantly Overvalued.
Key valuation signals for BOM:540545:
ROIC %: 0.61%
GF Value™: ₹4.56 vs. price of ₹35.89 (687.1% above fair value)
Industry Position: 86% below the Retail - Cyclical median
No single metric tells the full story. See the BOM:540545 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Guru Krupa Gems and Jewellery Business Description
Guru Krupa Gems and Jewellery Ltd, formelry Bhakti Gems and Jewellery Ltd is an integrated manufacturer and wholesaler of branded gold jewellery and ornaments. The company offer a diverse portfolio of gold jewellery crafted with or without studded precious and semi-precious stones, made from raw materials such as kundan, gemstones, and American diamonds. Its extensive product range includes rings, chains, bracelets, mangalsutras, necklaces, zuda, ear chains, toe rings, earrings, anklets, pendants, bangles, and more. Committed to craftsmanship and design, the company serves traditional, modern, and Indo-Western jewellery and ornaments in India.
55GF Score
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