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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 %. Poojaa Precision Engg's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 26.47%.
As of today (2026-08-31), Poojaa Precision Engg's WACC % is 12.80%. Poojaa Precision Engg's ROIC % is 22.49% (calculated using TTM income statement data).
Poojaa Precision Engg 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.
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, Poojaa Precision Engg's WACC % is 12.80%. Poojaa Precision Engg's ROIC % is 22.49% (calculated using TTM income statement data).
Poojaa Precision Engg 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.
Poojaa Precision Engg ROIC % Chart
Poojaa Precision Engg Annual Data
Trend
Mar23
Mar24
Mar25
Mar26
ROIC %
21.84
22.67
25.28
22.05
Poojaa Precision Engg Semi-Annual Data
Mar23
Mar24
Mar25
Sep25
Mar26
ROIC %
0.00
0.00
0.00
17.96
26.47
BOM:544844 vs ORLY, AZO, GPC: ROIC % Comparison
For the Auto Parts subindustry, Poojaa Precision Engg'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.
Poojaa Precision Engg ROIC % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Poojaa Precision Engg's ROIC % distribution charts can be found below:
* The bar in red indicates where Poojaa Precision Engg'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.
Poojaa Precision Engg (BOM:544844) has a ROIC % of 26.47% 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 Poojaa Precision Engg and its competitors.
Is Poojaa Precision Engg's ROIC % too high?
Poojaa Precision Engg's current ROIC % is 26.47%. The Vehicles & Parts industry median ROIC % is 5.07. Poojaa Precision Engg's value of 26.47% is 422.1% above this industry median. Overall, Poojaa Precision Engg has a GF Score™ of 17/100, reflecting its overall financial health beyond just this single metric.
How does Poojaa Precision Engg's ROIC % compare to ORLY and AZO?
Poojaa Precision Engg's ROIC % of 26.47% can be compared against companies in the Vehicles & Parts industry. The industry median ROIC % is 5.07. Poojaa Precision Engg's value of 26.47% is 422.1% 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 Vehicles & Parts company?
The median ROIC % among Vehicles & Parts companies is 5.07, based on 1,317 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. Poojaa Precision Engg's current ROIC % of 26.47% is 422.1% 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 Poojaa Precision Engg and its competitors. For the Vehicles & Parts industry, the median ROIC % is 5.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Poojaa Precision Engg's current ROIC % is 26.47%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Poojaa Precision Engg stock overvalued right now?
Poojaa Precision Engg (BOM:544844) has a current ROIC % of 26.47%. The current ROIC % is 26.47% and 422.1% above the Vehicles & Parts industry median of 5.07. Poojaa Precision Engg's overall GF Score™ is 17/100 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 Poojaa Precision Engg (BOM:544844), the current ROIC % is 26.47% 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.
Poojaa Precision Engg Ltd is a precision engineering company engaged in the manufacturing of aluminium die casting and machining components for use in the automotive sector, including electric vehicle applications and the non-automotive sector, covering agriculture, defence, energy, healthcare, and engineering goods industry. The majority of the company's revenue is derived from the sale of its products to the Automobile Sector, which includes components such as bracket, compressor, intake manifold, cylinder head cover, assembly air intake manifold, camshaft carrier, clutch housing, cover front, oil filter holder (NA), elbow assembly, etc. Geographically, the company operates only in India.
17GF Score
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