ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Happiest Minds Technologies's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 9.14%.
As of today (2026-07-12), Happiest Minds Technologies's WACC % is 8.28%. Happiest Minds Technologies's ROIC % is 9.00% (calculated using TTM income statement data).
Happiest Minds Technologies 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, Happiest Minds Technologies's WACC % is 8.28%. Happiest Minds Technologies's ROIC % is 9.00% (calculated using TTM income statement data).
Happiest Minds Technologies 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.
Happiest Minds Technologies ROIC % Related Terms
Happiest Minds Technologies 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.
NSE:HAPPSTMNDS vs IBM, ACN, FISV: ROIC % Comparison
For the Information Technology Services subindustry, Happiest Minds Technologies'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.
Happiest Minds Technologies ROIC % vs Software Industry
For the Software industry and Technology sector, Happiest Minds Technologies's ROIC % distribution charts can be found below:
* The bar in red indicates where Happiest Minds Technologies'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.
Happiest Minds Technologies (NSE:HAPPSTMNDS) has a ROIC % of 9.14% 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 Happiest Minds Technologies and its competitors.
Is Happiest Minds Technologies' ROIC % too high?
Happiest Minds Technologies' current ROIC % is 9.14%. The Software industry median ROIC % is 3.09. Happiest Minds Technologies' value of 9.14% is 195.8% above this industry median. Overall, Happiest Minds Technologies has a GF Score™ of 73/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Happiest Minds Technologies' ROIC % compare to IBM and ACN?
Happiest Minds Technologies' ROIC % of 9.14% can be compared against companies in the Software industry. The industry median ROIC % is 3.09. Happiest Minds Technologies' value of 9.14% is 195.8% 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 Software company?
The median ROIC % among Software companies is 3.09, based on 2,829 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. Happiest Minds Technologies's current ROIC % of 9.14% is 195.8% 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 Happiest Minds Technologies and its competitors. For the Software industry, the median ROIC % is 3.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Happiest Minds Technologies's current ROIC % is 9.14%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Happiest Minds Technologies stock overvalued right now?
Based on GuruFocus' analysis, Happiest Minds Technologies (NSE:HAPPSTMNDS) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹1,007.58, compared to a current price of ₹386.30 — trading 61.7% below its estimated fair value. The current ROIC % is 9.14% and 195.8% above the Software industry median of 3.09. Happiest Minds Technologies' overall GF Score™ is 73/100 with 3 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 Happiest Minds Technologies (NSE:HAPPSTMNDS), the current ROIC % is 9.14% 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 Happiest Minds Technologies (NSE:HAPPSTMNDS) Overvalued in 2026?
Based on GuruFocus' analysis, Happiest Minds Technologies stock appears to be undervalued.
The current stock price of ₹386.30 is trading 61.7% below its estimated GF Value™ of ₹1,007.58.
GuruFocus considers Happiest Minds Technologies to be Significantly Undervalued.
Key valuation signals for NSE:HAPPSTMNDS:
ROIC %: 9.14%
GF Value™: ₹1,007.58 vs. price of ₹386.30 (61.7% below fair value)
Industry Position: 195.8% above the Software median
No single metric tells the full story. See the NSE:HAPPSTMNDS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Happiest Minds Technologies Ltd is an information technology (IT) company intended to deliver seamless customer experiences, business efficiency, and actionable insights to users. The company leverages a spectrum of disruptive technologies like artificial intelligence, blockchain, cloud, digital process automation, internet of things, robotics/drones, security, virtual/augmented reality, and more, enabling users in industry sectors like automotive, banking, financial services and insurance (BFSI), consumer packaged goods, e-commerce, edutech, engineering research and development (R&D), hi-tech, manufacturing, retail, and travel/transportation/hospitality to undergo digital transformation. Geographically, the company generates its key revenue from the United States of America.
73GF Score
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