ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Encompass Design India's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2025 was 22.44%.
As of today (2026-07-02), Encompass Design India's WACC % is 12.54%. Encompass Design India's ROIC % is 11.22% (calculated using TTM income statement data).
Encompass Design India earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Encompass Design India (NSE:ENCOMPAS) 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, Encompass Design India's WACC % is 12.54%. Encompass Design India's ROIC % is 11.22% (calculated using TTM income statement data).
Encompass Design India 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.
* 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.
Encompass Design India ROIC % Chart
Encompass Design India Annual Data
Trend
Mar23
Mar24
Mar25
ROIC %
-6.01
39.35
32.75
Encompass Design India Semi-Annual Data
Mar23
Mar24
Mar25
Sep25
ROIC %
0.00
0.00
0.00
22.44
NSE:ENCOMPAS vs HD, LOW, FND: ROIC % Comparison
For the Home Improvement Retail subindustry, Encompass Design India'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.
Encompass Design India ROIC % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Encompass Design India's ROIC % distribution charts can be found below:
* The bar in red indicates where Encompass Design India's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Sep. 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.
Encompass Design India (NSE:ENCOMPAS) has a ROIC % of 22.44% as of Sep. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Encompass Design India and its competitors.
Is Encompass Design India's ROIC % too high?
Encompass Design India's current ROIC % is 22.44%. The Retail - Cyclical industry median ROIC % is 4.38. Encompass Design India's value of 22.44% is 412.3% above this industry median. Overall, Encompass Design India has a GF Score™ of 20/100, reflecting its overall financial health beyond just this single metric.
How does Encompass Design India's ROIC % compare to HD and LOW?
Encompass Design India's ROIC % of 22.44% can be compared against companies in the Retail - Cyclical industry. The industry median ROIC % is 4.38. Encompass Design India's value of 22.44% is 412.3% 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 Retail - Cyclical company?
The median ROIC % among Retail - Cyclical companies is 4.38, based on 1,108 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. Encompass Design India's current ROIC % of 22.44% is 412.3% 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 Encompass Design India and its competitors. For the Retail - Cyclical industry, the median ROIC % is 4.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Encompass Design India'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 Encompass Design India stock overvalued right now?
Encompass Design India (NSE:ENCOMPAS) has a current ROIC % of 22.44%. The current ROIC % is 22.44% and 412.3% above the Retail - Cyclical industry median of 4.38. Encompass Design India's overall GF Score™ is 20/100 with 4 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 Encompass Design India (NSE:ENCOMPAS), the current ROIC % is 22.44% as of Sep. 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.
Encompass Design India Ltd is principally engaged in the manufacturing of home and lifestyle products, such as bed sheets, curtains, comforters, table linens, and pillow covers, as well as food products, with a primary focus on sauces, marketed under its own brands. The company is also involved in the trading of agro-based products, cotton, and fabrics. The company's business operations are spread across multiple segments, including manufacturing of home and lifestyle products, development and marketing of food products, trading of fabrics, cotton and agro-based products, and (iv) providing digital and e-commerce support services. The company derives revenue from the manufacturing and export of its Textile and Sauces Food brands.
20GF Score
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