ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Bombay Burmah Trading's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 22.44%.
As of today (2026-07-02), Bombay Burmah Trading's WACC % is 17.90%. Bombay Burmah Trading's ROIC % is 20.69% (calculated using TTM income statement data).
Bombay Burmah Trading 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, Bombay Burmah Trading's WACC % is 17.90%. Bombay Burmah Trading's ROIC % is 20.69% (calculated using TTM income statement data).
Bombay Burmah Trading 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.
For the Packaged Foods subindustry, Bombay Burmah Trading'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.
Bombay Burmah Trading ROIC % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Bombay Burmah Trading's ROIC % distribution charts can be found below:
* The bar in red indicates where Bombay Burmah Trading'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.
Bombay Burmah Trading (NSE:BBTC) has a ROIC % of 22.44% 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 Bombay Burmah Trading and its competitors.
Is Bombay Burmah Trading's ROIC % too high?
Bombay Burmah Trading's current ROIC % is 22.44%. The Consumer Packaged Goods industry median ROIC % is 5.13. Bombay Burmah Trading's value of 22.44% is 337.4% above this industry median. Overall, Bombay Burmah Trading has a GF Score™ of 89/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Bombay Burmah Trading's ROIC % compare to KHC and GIS?
Bombay Burmah Trading's ROIC % of 22.44% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROIC % is 5.13. Bombay Burmah Trading's value of 22.44% is 337.4% 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 Consumer Packaged Goods company?
The median ROIC % among Consumer Packaged Goods companies is 5.13, based on 1,942 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. Bombay Burmah Trading's current ROIC % of 22.44% is 337.4% 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 Bombay Burmah Trading and its competitors. For the Consumer Packaged Goods industry, the median ROIC % is 5.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bombay Burmah Trading's current ROIC % is 22.44%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bombay Burmah Trading stock overvalued right now?
Based on GuruFocus' analysis, Bombay Burmah Trading (NSE:BBTC) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹1,978.90, compared to a current price of ₹1,539.20 — trading 22.2% below its estimated fair value. The current ROIC % is 22.44% and 337.4% above the Consumer Packaged Goods industry median of 5.13. Bombay Burmah Trading's overall GF Score™ is 89/100. 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 Bombay Burmah Trading (NSE:BBTC), the current ROIC % is 22.44% 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 Bombay Burmah Trading (NSE:BBTC) Overvalued in 2026?
Based on GuruFocus' analysis, Bombay Burmah Trading stock appears to be undervalued.
The current stock price of ₹1,539.20 is trading 22.2% below its estimated GF Value™ of ₹1,978.90.
GuruFocus considers Bombay Burmah Trading to be Modestly Undervalued.
Key valuation signals for NSE:BBTC:
ROIC %: 22.44%
GF Value™: ₹1,978.90 vs. price of ₹1,539.20 (22.2% below fair value)
Industry Position: 337.4% above the Consumer Packaged Goods median
No single metric tells the full story. See the NSE:BBTC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bombay Burmah Trading Corp Ltd together with its subsidiaries is engaged in tea and coffee plantation, manufacturing of dental products, auto ancillary products, and real estate development. The company's business segment comprises of Plantation - Tea, Auto electric components, Investments, Health care, Horticulture, Food - Bakery and dairy products, and Others. Maximum revenue for the company is generated from its Food - Bakery and dairy products segment. Geographically, the company derives a majority of its revenue within India and the rest from other countries.
89GF Score
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