Mehul Telecom (BOM:544751) ROIC %: 60.87% (As of Mar. 2025)

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BOM:544751 Mehul Telecom Ltd BOM:544751
19 GF Score
Price ₹93.50
! 2 Warning Signs
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What is Mehul Telecom ROIC %?

Mehul Telecom BOM:544751 -1.57% 19 ROIC % is 60.87% as of Mar. 2025. GuruFocus rates BOM:544751 with a GF Score™ of 19/100. The stock has 2 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 %. Mehul Telecom's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2025 was 60.87%.

As of today (2026-07-21), Mehul Telecom's WACC % is 13.04%. Mehul Telecom's ROIC % is 60.87% (calculated using TTM income statement data). Mehul Telecom 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.


Mehul Telecom  (BOM:544751) 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, Mehul Telecom's WACC % is 13.04%. Mehul Telecom's ROIC % is 60.87% (calculated using TTM income statement data). Mehul Telecom 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.


Mehul Telecom ROIC % Related Terms


Mehul Telecom ROIC % Historical Data

* Premium members only.

The historical data trend for Mehul Telecom'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.

Mehul Telecom ROIC % Chart

Mehul Telecom Annual Data
Trend Mar23 Mar24 Mar25
ROIC %
6.96 65.61 60.87

Mehul Telecom Semi-Annual Data
Mar23 Mar24 Mar25
ROIC % 6.96 65.61 60.87

BOM:544751 vs AAPL: ROIC % Comparison

For the Consumer Electronics subindustry, Mehul Telecom'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.


Mehul Telecom ROIC % vs Hardware Industry

For the Hardware industry and Technology sector, Mehul Telecom's ROIC % distribution charts can be found below:

* The bar in red indicates where Mehul Telecom's ROIC % falls into.


BOM:544751
19GF Score
Mehul Telecom Ltd BOM:544751
ROIC % is just one metric. See GF Score™, valuation, warning signs, and more.
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Mehul Telecom ROIC % Calculation

Mehul Telecom's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Mar. 2025 is calculated as:

ROIC % (A: Mar. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Mar. 2024 ) + Invested Capital (A: Mar. 2025 ))/ count )
=79.688 * ( 1 - 25.02% )/( (0.833 + 195.503)/ 2 )
=59.7500624/98.168
=60.87 %

where

Mehul Telecom's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Mar. 2025 is calculated as:

ROIC % (Q: Mar. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2024 ) + Invested Capital (Q: Mar. 2025 ))/ count )
=79.688 * ( 1 - 25.02% )/( (0.833 + 195.503)/ 2 )
=59.7500624/98.168
=60.87 %

where

Note: The Operating Income data used here is one times the annual (Mar. 2025) 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 60.87% mean?
Mehul Telecom (BOM:544751) has a ROIC % of 60.87% as of Mar. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Mehul Telecom and its competitors.
Is Mehul Telecom's ROIC % too high?
Mehul Telecom's current ROIC % is 60.87%. The Hardware industry median ROIC % is 4.14. Mehul Telecom's value of 60.87% is 1370.3% above this industry median. Overall, Mehul Telecom has a GF Score™ of 19/100, reflecting its overall financial health beyond just this single metric.
How does Mehul Telecom's ROIC % compare to AAPL?
Mehul Telecom's ROIC % of 60.87% can be compared against companies in the Hardware industry. The industry median ROIC % is 4.14. Mehul Telecom's value of 60.87% is 1370.3% 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 Hardware company?
The median ROIC % among Hardware companies is 4.14, based on 2,449 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. Mehul Telecom's current ROIC % of 60.87% is 1370.3% 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 Mehul Telecom and its competitors. For the Hardware industry, the median ROIC % is 4.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mehul Telecom's current ROIC % is 60.87%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mehul Telecom stock overvalued right now?
Mehul Telecom (BOM:544751) has a current ROIC % of 60.87%. The current ROIC % is 60.87% and 1370.3% above the Hardware industry median of 4.14. Mehul Telecom's overall GF Score™ is 19/100 with 2 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 Mehul Telecom (BOM:544751), the current ROIC % is 60.87% as of Mar. 2025. 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.

Mehul Telecom Business Description

Address 150 Ft Ring Road, Rajkot Raiya Road, West Gate Shop 223, Near Raiya Circle, Rajkot, GJ, IND, 360007
Mehul Telecom Ltd is in the business of operating a multi-brand mobile retail chain offering smartphones and Other electronic products and accessories through a mix of company-owned and franchise-operated stores. Its product range includes smartphones from various brands as well as consumer electronics such as televisions, refrigerators, washing machines, air conditioners, wearables, audio devices, tablets, and related accessories. It operates under the brand name Mehul Telecom. The majority of the company's revenue is derived from the sale of Mobile Phones. Geographically, it operates only in India.
19GF 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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