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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 %. Bajaj Housing Finance's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2026 was 1.93%.
As of today (2026-07-31), Bajaj Housing Finance's WACC % is 5.68%. Bajaj Housing Finance's ROIC % is 2.20% (calculated using TTM income statement data).
Bajaj Housing Finance 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, Bajaj Housing Finance's WACC % is 5.68%. Bajaj Housing Finance's ROIC % is 2.20% (calculated using TTM income statement data).
Bajaj Housing Finance 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 Mortgage Finance subindustry, Bajaj Housing Finance'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.
Bajaj Housing Finance ROIC % vs Banks Industry
For the Banks industry and Financial Services sector, Bajaj Housing Finance's ROIC % distribution charts can be found below:
* The bar in red indicates where Bajaj Housing Finance's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Jun. 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.
Bajaj Housing Finance (BOM:544252) has a ROIC % of 1.93% as of Jun. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Bajaj Housing Finance and its competitors.
Is Bajaj Housing Finance's ROIC % too high?
Bajaj Housing Finance's current ROIC % is 1.93%. The Banks industry median ROIC % is 1.85. Bajaj Housing Finance's value of 1.93% is 4.3% above this industry median. Overall, Bajaj Housing Finance has a GF Score™ of 7/100, reflecting its overall financial health beyond just this single metric.
How does Bajaj Housing Finance's ROIC % compare to RKT and FNMA?
Bajaj Housing Finance's ROIC % of 1.93% can be compared against companies in the Banks industry. The industry median ROIC % is 1.85. Bajaj Housing Finance's value of 1.93% is 4.3% 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 Banks company?
The median ROIC % among Banks companies is 1.85, based on 47 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. Bajaj Housing Finance's current ROIC % of 1.93% is 4.3% 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 Bajaj Housing Finance and its competitors. For the Banks industry, the median ROIC % is 1.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bajaj Housing Finance's current ROIC % is 1.93%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bajaj Housing Finance stock overvalued right now?
Bajaj Housing Finance (BOM:544252) has a current ROIC % of 1.93%. The current ROIC % is 1.93% and 4.3% above the Banks industry median of 1.85. Bajaj Housing Finance's overall GF Score™ is 7/100 with 3 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 Bajaj Housing Finance (BOM:544252), the current ROIC % is 1.93% as of Jun. 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.
Bajaj Housing Finance Ltd is a non-deposit-taking Housing Finance Company. The company offers financial solutions tailored to individuals and corporate entities for the purchase and renovation of homes and commercial spaces. The mortgage product suite of the company is comprehensive and comprises home loans, loans against property (LAP), lease rental discounting, and developer financing. The company's emphasis is on individual retail housing loans, complemented by a diversified collection of lease rental discounting and developer loans.
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