ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Indus Dyeing & Manufacturing Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 4.71%.
As of today (2026-07-13), Indus Dyeing & Manufacturing Co's WACC % is 4.72%. Indus Dyeing & Manufacturing Co's ROIC % is 3.03% (calculated using TTM income statement data).
Indus Dyeing & Manufacturing Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Indus Dyeing & Manufacturing Co (KAR:IDYM) 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, Indus Dyeing & Manufacturing Co's WACC % is 4.72%. Indus Dyeing & Manufacturing Co's ROIC % is 3.03% (calculated using TTM income statement data).
Indus Dyeing & Manufacturing Co 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.
Indus Dyeing & Manufacturing Co ROIC % Related Terms
Indus Dyeing & Manufacturing Co ROIC % Historical Data
* 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.
Indus Dyeing & Manufacturing Co ROIC % Competitor Comparison
For the Textile Manufacturing subindustry, Indus Dyeing & Manufacturing Co'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.
Indus Dyeing & Manufacturing Co ROIC % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Indus Dyeing & Manufacturing Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Indus Dyeing & Manufacturing Co's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (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.
Indus Dyeing & Manufacturing Co (KAR:IDYM) has a ROIC % of 4.71% 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 Indus Dyeing & Manufacturing Co and its competitors.
Is Indus Dyeing & Manufacturing Co's ROIC % too high?
Indus Dyeing & Manufacturing Co's current ROIC % is 4.71%. The Manufacturing - Apparel & Accessories industry median ROIC % is 2.91. Indus Dyeing & Manufacturing Co's value of 4.71% is 61.9% above this industry median. Overall, Indus Dyeing & Manufacturing Co has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Indus Dyeing & Manufacturing Co's ROIC % compare to competitors?
Indus Dyeing & Manufacturing Co's ROIC % of 4.71% can be compared against companies in the Manufacturing - Apparel & Accessories industry. The industry median ROIC % is 2.91. Indus Dyeing & Manufacturing Co's value of 4.71% is 61.9% 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 Manufacturing - Apparel & Accessories company?
The median ROIC % among Manufacturing - Apparel & Accessories companies is 2.91, based on 1,043 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. Indus Dyeing & Manufacturing Co's current ROIC % of 4.71% is 61.9% 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 Indus Dyeing & Manufacturing Co and its competitors. For the Manufacturing - Apparel & Accessories industry, the median ROIC % is 2.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Indus Dyeing & Manufacturing Co's current ROIC % is 4.71%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Indus Dyeing & Manufacturing Co stock overvalued right now?
Based on GuruFocus' analysis, Indus Dyeing & Manufacturing Co (KAR:IDYM) is currently considered Fairly Valued. The stock's GF Value™ is ₨146.71, compared to a current price of ₨145.51 — trading 0.8% below its estimated fair value. The current ROIC % is 4.71% and 61.9% above the Manufacturing - Apparel & Accessories industry median of 2.91. Indus Dyeing & Manufacturing Co's overall GF Score™ is 79/100 with 8 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 Indus Dyeing & Manufacturing Co (KAR:IDYM), the current ROIC % is 4.71% 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.
Is Indus Dyeing & Manufacturing Co (KAR:IDYM) Overvalued in 2026?
Based on GuruFocus' analysis, Indus Dyeing & Manufacturing Co stock appears to be undervalued.
The current stock price of ₨145.51 is trading 0.8% below its estimated GF Value™ of ₨146.71.
GuruFocus considers Indus Dyeing & Manufacturing Co to be Fairly Valued.
Key valuation signals for KAR:IDYM:
ROIC %: 4.71%
GF Value™: ₨146.71 vs. price of ₨145.51 (0.8% below fair value)
Industry Position: 61.9% above the Manufacturing - Apparel & Accessories median
No single metric tells the full story. See the KAR:IDYM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Indus Dyeing & Manufacturing Co Business Description
Indus Dyeing & Manufacturing Co Ltd is engaged in the textile industry. The company's core business is the manufacturing and sale of yarn. It has three yarn manufacturing units located in Hyderabad, Karachi, and Muzaffargarh. It manufactures a variety of ring-spun yarns. Its products include regular carded and combed yarns, siro yarn, melange, core-spun yarns, slub, zero twist, bamboo/cotton blends, and compact yarn, among others. Geographically, the company generates maximum revenue from its business in Pakistan, and the rest through the export of its products to Bangladesh, Brazil, China, Egypt, Germany, Italy, Hong Kong, and other markets.
79GF Score
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