MPK Steels (I) (BOM:544553) ROIC %: 18.81% (As of Mar. 2026)

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BOM:544553 MPK Steels (I) Ltd BOM:544553
15 GF Score
Price ₹103.00
! 3 Warning Signs
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What is MPK Steels (I) ROIC %?

MPK Steels (I) BOM:544553 -1.01% 15 ROIC % is 18.81% as of Mar. 2026. GuruFocus rates BOM:544553 with a GF Score™ of 15/100. The stock has 3 warning signs investors should review.

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. MPK Steels (I)'s annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 18.81%.

As of today (2026-07-30), MPK Steels (I)'s WACC % is 12.19%. MPK Steels (I)'s ROIC % is 9.41% (calculated using TTM income statement data). MPK Steels (I) earns returns that do not match up to its cost of capital. It will destroy value as it grows.


MPK Steels (I)  (BOM:544553) 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, MPK Steels (I)'s WACC % is 12.19%. MPK Steels (I)'s ROIC % is 9.41% (calculated using TTM income statement data). MPK Steels (I) 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.


MPK Steels (I) ROIC % Related Terms


MPK Steels (I) ROIC % Historical Data

* Premium members only.

The historical data trend for MPK Steels (I)'s ROIC % can be seen below:

* 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.

MPK Steels (I) ROIC % Chart

MPK Steels (I) Annual Data
Trend Mar23 Mar24 Mar25 Mar26
ROIC %
4.37 9.43 14.40 13.50

MPK Steels (I) Semi-Annual Data
Mar23 Mar24 Mar25 Mar26
ROIC % 0.00 0.00 16.49 18.81

BOM:544553 vs NUE, STLD, RS: ROIC % Comparison

For the Steel subindustry, MPK Steels (I)'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.


MPK Steels (I) ROIC % vs Steel Industry

For the Steel industry and Basic Materials sector, MPK Steels (I)'s ROIC % distribution charts can be found below:

* The bar in red indicates where MPK Steels (I)'s ROIC % falls into.


BOM:544553
15GF Score
MPK Steels (I) Ltd BOM:544553
ROIC % is just one metric. See GF Score™, valuation, warning signs, and more.
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MPK Steels (I) ROIC % Calculation

MPK Steels (I)'s annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Mar. 2026 is calculated as:

ROIC % (A: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Mar. 2025 ) + Invested Capital (A: Mar. 2026 ))/ count )
=99.427 * ( 1 - 32.16% )/( (423.757 + 575.881)/ 2 )
=67.4512768/499.819
=13.50 %

where

Invested Capital(A: Mar. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=623.623 - 187.394 - ( 12.472 - max(0, 273.621 - 581.419+12.472))
=423.757

Invested Capital(A: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1174.641 - 442.588 - ( 156.172 - max(0, 564.775 - 1017.304+156.172))
=575.881

MPK Steels (I)'s annualized Return on Invested Capital (ROIC %) for the quarter that ended in Mar. 2026 is calculated as:

ROIC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=138.016 * ( 1 - 31.87% )/( (423.757 + 575.881)/ 2 )
=94.0303008/499.819
=18.81 %

where

Invested Capital(Q: Mar. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=623.623 - 187.394 - ( 12.472 - max(0, 273.621 - 581.419+12.472))
=423.757

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1174.641 - 442.588 - ( 156.172 - max(0, 564.775 - 1017.304+156.172))
=575.881

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.

Frequently Asked Questions Learn more about ROIC % →
What does a ROIC % of 18.81% mean?
MPK Steels (I) (BOM:544553) has a ROIC % of 18.81% 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 MPK Steels (I) and its competitors.
Is MPK Steels (I)'s ROIC % too high?
MPK Steels (I)'s current ROIC % is 18.81%. The Steel industry median ROIC % is 2.59. MPK Steels (I)'s value of 18.81% is 626.3% above this industry median. Overall, MPK Steels (I) has a GF Score™ of 15/100, reflecting its overall financial health beyond just this single metric.
How does MPK Steels (I)'s ROIC % compare to NUE and STLD?
MPK Steels (I)'s ROIC % of 18.81% can be compared against companies in the Steel industry. The industry median ROIC % is 2.59. MPK Steels (I)'s value of 18.81% is 626.3% 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 Steel company?
The median ROIC % among Steel companies is 2.59, based on 622 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. MPK Steels (I)'s current ROIC % of 18.81% is 626.3% 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 MPK Steels (I) and its competitors. For the Steel industry, the median ROIC % is 2.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MPK Steels (I)'s current ROIC % is 18.81%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MPK Steels (I) stock overvalued right now?
MPK Steels (I) (BOM:544553) has a current ROIC % of 18.81%. The current ROIC % is 18.81% and 626.3% above the Steel industry median of 2.59. MPK Steels (I)'s overall GF Score™ is 15/100 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 MPK Steels (I) (BOM:544553), the current ROIC % is 18.81% 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.

MPK Steels (I) Business Description

Address A - 195, RIICO Industrial Area Extension, Phase 2 Bagru, Jaipur, RJ, IND, 303007
MPK Steels (I) Ltd is a manufacturer of general-purpose structural steel products, specializing in providing high-quality solutions for a wide range of industries such as Railways, Telecom Industries, State Electricity Boards, Power & Energy Industries, Automotive Industry, Offshore Structures, Construction Industries, Fabrication Industries, Auto Body Builders, Infrastructural Development Authorities. The company is well-equipped to manufacture and trade a wide range of structural steel products, including M.S. Channel, M.S. Joist/Beam, M.S. Angle, M.S. Square Bar, M.S. Round Bar, and M.S. Flat where M.S. Channels generate the majority of its revenue and play a pivotal role in driving the success of its business.
15GF Score

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ROIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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