Dhaval Packaging (BOM:544854) ROIC %: 19.94% (As of Mar. 2026)

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BOM:544854 Dhaval Packaging Ltd BOM:544854
17 GF Score
Price ₹120.53
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What is Dhaval Packaging ROIC %?

Dhaval Packaging BOM:544854 -1.82% 17 ROIC % is 19.94% as of Mar. 2026. GuruFocus rates BOM:544854 with a GF Score™ of 17/100. The stock has 1 warning sign 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 %. Dhaval Packaging's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 19.94%.

As of today (2026-08-31), Dhaval Packaging's WACC % is 12.16%. Dhaval Packaging's ROIC % is 19.94% (calculated using TTM income statement data). Dhaval Packaging 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.


Dhaval Packaging  (BOM:544854) 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, Dhaval Packaging's WACC % is 12.16%. Dhaval Packaging's ROIC % is 19.94% (calculated using TTM income statement data). Dhaval Packaging 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.


Dhaval Packaging ROIC % Related Terms


Dhaval Packaging ROIC % Historical Data

* Premium members only.

The historical data trend for Dhaval Packaging'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.

Dhaval Packaging ROIC % Chart

Dhaval Packaging Annual Data
Trend Mar23 Mar24 Mar25 Mar26
ROIC %
4.61 10.25 22.46 19.94

Dhaval Packaging Semi-Annual Data
Mar23 Mar24 Mar25 Mar26
ROIC % 4.61 10.25 22.46 19.94

BOM:544854 vs SW, AMCR, PKG: ROIC % Comparison

For the Packaging & Containers subindustry, Dhaval Packaging'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.


Dhaval Packaging ROIC % vs Packaging & Containers Industry

For the Packaging & Containers industry and Consumer Cyclical sector, Dhaval Packaging's ROIC % distribution charts can be found below:

* The bar in red indicates where Dhaval Packaging's ROIC % falls into.


BOM:544854
17GF Score
Dhaval Packaging Ltd BOM:544854
ROIC % is just one metric. See GF Score™, valuation, warning signs, and more.
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Dhaval Packaging ROIC % Calculation

Dhaval Packaging'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 )
=125.659 * ( 1 - 25% )/( (379.505 + 565.684)/ 2 )
=94.24425/472.5945
=19.94 %

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))
=478.929 - 84.478 - ( 16.635 - max(0, 198.961 - 213.907+16.635))
=379.505

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))
=664.235 - 74.834 - ( 29.431 - max(0, 239.667 - 263.384+29.431))
=565.684

Dhaval Packaging'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 )
=125.659 * ( 1 - 25% )/( (379.505 + 565.684)/ 2 )
=94.24425/472.5945
=19.94 %

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))
=478.929 - 84.478 - ( 16.635 - max(0, 198.961 - 213.907+16.635))
=379.505

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))
=664.235 - 74.834 - ( 29.431 - max(0, 239.667 - 263.384+29.431))
=565.684

Note: The Operating Income data used here is one times the 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 19.94% mean?
Dhaval Packaging (BOM:544854) has a ROIC % of 19.94% 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 Dhaval Packaging and its competitors.
Is Dhaval Packaging's ROIC % too high?
Dhaval Packaging's current ROIC % is 19.94%. The Packaging & Containers industry median ROIC % is 4.57. Dhaval Packaging's value of 19.94% is 336.3% above this industry median. Overall, Dhaval Packaging has a GF Score™ of 17/100, reflecting its overall financial health beyond just this single metric.
How does Dhaval Packaging's ROIC % compare to SW and AMCR?
Dhaval Packaging's ROIC % of 19.94% can be compared against companies in the Packaging & Containers industry. The industry median ROIC % is 4.57. Dhaval Packaging's value of 19.94% is 336.3% 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 Packaging & Containers company?
The median ROIC % among Packaging & Containers companies is 4.57, based on 407 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. Dhaval Packaging's current ROIC % of 19.94% is 336.3% 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 Dhaval Packaging and its competitors. For the Packaging & Containers industry, the median ROIC % is 4.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dhaval Packaging's current ROIC % is 19.94%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dhaval Packaging stock overvalued right now?
Dhaval Packaging (BOM:544854) has a current ROIC % of 19.94%. The current ROIC % is 19.94% and 336.3% above the Packaging & Containers industry median of 4.57. Dhaval Packaging's overall GF Score™ is 17/100 with 1 warning sign 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 Dhaval Packaging (BOM:544854), the current ROIC % is 19.94% 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.

Dhaval Packaging Business Description

Address Shilaj Cross Road, S.P. Ring Road, Office No. D/1214, Swati Crimson & Clover, Near Shilaj Circle, Shilaj, Ahmedabad, GJ, IND, 380059
Dhaval Packaging Ltd is engaged in the business of manufacturing and trading of plastic packaging materials, pipe protection material and related products. It caters to industrial clients across various sectors requiring customized packaging solutions. The company's product portfolio is organized into two categories, which also represent its primary reportable segments: 1. In-Mold Labelling (IML) Containers, 2. SAW Pipe Protection Plastic Caps (End Caps). The majority of the company's revenue is derived from the IML Containers segment. Geographically, it operates predominantly in India.
17GF 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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