Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Prospect Consumer Products's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 3.86%.
As of today (2026-07-17), Prospect Consumer Products's WACC % is 10.77%. Prospect Consumer Products's ROIC % is 9.04% (calculated using TTM income statement data).
Prospect Consumer Products 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, Prospect Consumer Products's WACC % is 10.77%. Prospect Consumer Products's ROIC % is 9.04% (calculated using TTM income statement data).
Prospect Consumer Products 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.
* 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 Farm Products subindustry, Prospect Consumer Products'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.
Prospect Consumer Products ROIC % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Prospect Consumer Products's ROIC % distribution charts can be found below:
* The bar in red indicates where Prospect Consumer Products's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (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.
Prospect Consumer Products (BOM:543814) has a ROIC % of 3.86% 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 Prospect Consumer Products and its competitors.
Is Prospect Consumer Products' ROIC % too high?
Prospect Consumer Products' current ROIC % is 3.86%. The Consumer Packaged Goods industry median ROIC % is 5.21. Prospect Consumer Products' value of 3.86% is 25.8% below this industry median. Overall, Prospect Consumer Products has a GF Score™ of 39/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Prospect Consumer Products' ROIC % compare to ADM and BG?
Prospect Consumer Products' ROIC % of 3.86% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROIC % is 5.21. Prospect Consumer Products' value of 3.86% is 25.8% 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 Consumer Packaged Goods company?
The median ROIC % among Consumer Packaged Goods companies is 5.21, based on 1,952 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. Prospect Consumer Products's current ROIC % of 3.86% is 25.8% 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 Prospect Consumer Products and its competitors. For the Consumer Packaged Goods industry, the median ROIC % is 5.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Prospect Consumer Products's current ROIC % is 3.86%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Prospect Consumer Products stock overvalued right now?
Based on GuruFocus' analysis, Prospect Consumer Products (BOM:543814) is currently considered Possible Value Trap. The stock's GF Value™ is ₹120.20, compared to a current price of ₹48.00 — trading 60.1% below its estimated fair value. The current ROIC % is 3.86% and 25.8% below the Consumer Packaged Goods industry median of 5.21. Prospect Consumer Products' overall GF Score™ is 39/100 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 Prospect Consumer Products (BOM:543814), the current ROIC % is 3.86% 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 Prospect Consumer Products (BOM:543814) Overvalued in 2026?
Based on GuruFocus' analysis, Prospect Consumer Products stock appears to be undervalued.
The current stock price of ₹48.00 is trading 60.1% below its estimated GF Value™ of ₹120.20.
GuruFocus considers Prospect Consumer Products to be Possible Value Trap.
Key valuation signals for BOM:543814:
ROIC %: 3.86%
GF Value™: ₹120.20 vs. price of ₹48.00 (60.1% below fair value)
Industry Position: 25.8% below the Consumer Packaged Goods median
No single metric tells the full story. See the BOM:543814 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Prospect Consumer Products Ltd is engaged in the cashew trading business. It processes, trades, exports, and supplies natural and flavored cashew kernels under the brand DRIFRUTZ. The company also deals in cashew by-products such as husk, husk pellets, and shells. Its operations include a cashew processing plant near Ahmedabad, Gujarat, catering to both domestic and international markets. Revenue is generated through the sale and export of cashew kernels and related products across wholesale business-to-business channels.
39GF Score
Get the complete analysis for BOM:543814
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:543814 has been successfully added to your 
