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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 %. Malpani Pipes And Fittings's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 15.31%.
As of today (2026-08-20), Malpani Pipes And Fittings's WACC % is 12.08%. Malpani Pipes And Fittings's ROIC % is 13.17% (calculated using TTM income statement data).
Malpani Pipes And Fittings generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
Malpani Pipes And Fittings (BOM:544351) 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, Malpani Pipes And Fittings's WACC % is 12.08%. Malpani Pipes And Fittings's ROIC % is 13.17% (calculated using TTM income statement data).
Malpani Pipes And Fittings generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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 Specialty Chemicals subindustry, Malpani Pipes And Fittings'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.
Malpani Pipes And Fittings ROIC % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Malpani Pipes And Fittings's ROIC % distribution charts can be found below:
* The bar in red indicates where Malpani Pipes And Fittings'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.
Malpani Pipes And Fittings (BOM:544351) has a ROIC % of 15.31% 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 Malpani Pipes And Fittings and its competitors.
Is Malpani Pipes And Fittings' ROIC % too high?
Malpani Pipes And Fittings' current ROIC % is 15.31%. The Chemicals industry median ROIC % is 4.70. Malpani Pipes And Fittings' value of 15.31% is 225.7% above this industry median. Overall, Malpani Pipes And Fittings has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Malpani Pipes And Fittings' ROIC % compare to LIN and SHW?
Malpani Pipes And Fittings' ROIC % of 15.31% can be compared against companies in the Chemicals industry. The industry median ROIC % is 4.70. Malpani Pipes And Fittings' value of 15.31% is 225.7% 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 4.70, based on 1,581 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. Malpani Pipes And Fittings's current ROIC % of 15.31% is 225.7% 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 Malpani Pipes And Fittings and its competitors. For the Chemicals industry, the median ROIC % is 4.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Malpani Pipes And Fittings's current ROIC % is 15.31%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Malpani Pipes And Fittings stock overvalued right now?
Malpani Pipes And Fittings (BOM:544351) has a current ROIC % of 15.31%. The current ROIC % is 15.31% and 225.7% above the Chemicals industry median of 4.70. Malpani Pipes And Fittings' overall GF Score™ is 16/100 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 Malpani Pipes And Fittings (BOM:544351), the current ROIC % is 15.31% 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.
Malpani Pipes And Fittings Ltd manufactures a range of high-grade plastic pipes. Its products include High-Density Polyethylene (HDPE) Pipes, Medium-Density Polyethylene (MDPE) Pipes, and Linear Low-Density Polyethylene (LLDPE) Pipes, all marketed under the brand name. The company is also engaged in the trading of granules and PVC pipes, as well as the sale of services. It distributes its products to both wholesalers and retailers. Additionally, the company supplies pipes for government projects through authorized contractors involved in local, state or federal development schemes. Also, It supplies pipes to farmers in terms of farmer welfare policies launched by the Central or State Government.
16GF Score
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