ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Indian Railway Catering And Tourism's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 31.25%.
As of today (2026-07-01), Indian Railway Catering And Tourism's WACC % is 15.30%. Indian Railway Catering And Tourism's ROIC % is 34.86% (calculated using TTM income statement data).
Indian Railway Catering And Tourism 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.
Indian Railway Catering And Tourism (NSE:IRCTC) 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, Indian Railway Catering And Tourism's WACC % is 15.30%. Indian Railway Catering And Tourism's ROIC % is 34.86% (calculated using TTM income statement data).
Indian Railway Catering And Tourism 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.
Indian Railway Catering And Tourism ROIC % Related Terms
Indian Railway Catering And Tourism 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.
For the Travel Services subindustry, Indian Railway Catering And Tourism'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.
Indian Railway Catering And Tourism ROIC % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Indian Railway Catering And Tourism's ROIC % distribution charts can be found below:
* The bar in red indicates where Indian Railway Catering And Tourism'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.
Indian Railway Catering And Tourism (NSE:IRCTC) has a ROIC % of 31.25% 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 Indian Railway Catering And Tourism and its competitors.
Is Indian Railway Catering And Tourism's ROIC % too high?
Indian Railway Catering And Tourism's current ROIC % is 31.25%. The Travel & Leisure industry median ROIC % is 3.77. Indian Railway Catering And Tourism's value of 31.25% is 730% above this industry median. Overall, Indian Railway Catering And Tourism has a GF Score™ of 91/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Indian Railway Catering And Tourism's ROIC % compare to BKNG and ABNB?
Indian Railway Catering And Tourism's ROIC % of 31.25% can be compared against companies in the Travel & Leisure industry. The industry median ROIC % is 3.77. Indian Railway Catering And Tourism's value of 31.25% is 730% 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 Travel & Leisure company?
The median ROIC % among Travel & Leisure companies is 3.77, based on 834 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. Indian Railway Catering And Tourism's current ROIC % of 31.25% is 730% 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 Indian Railway Catering And Tourism and its competitors. For the Travel & Leisure industry, the median ROIC % is 3.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Indian Railway Catering And Tourism's current ROIC % is 31.25%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Indian Railway Catering And Tourism stock overvalued right now?
Based on GuruFocus' analysis, Indian Railway Catering And Tourism (NSE:IRCTC) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹948.22, compared to a current price of ₹502.90 — trading 47% below its estimated fair value. The current ROIC % is 31.25% and 730% above the Travel & Leisure industry median of 3.77. Indian Railway Catering And Tourism's overall GF Score™ is 91/100 with 2 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 Indian Railway Catering And Tourism (NSE:IRCTC), the current ROIC % is 31.25% 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 Indian Railway Catering And Tourism (NSE:IRCTC) Overvalued in 2026?
Based on GuruFocus' analysis, Indian Railway Catering And Tourism stock appears to be undervalued.
The current stock price of ₹502.90 is trading 47% below its estimated GF Value™ of ₹948.22.
GuruFocus considers Indian Railway Catering And Tourism to be Significantly Undervalued.
Key valuation signals for NSE:IRCTC:
ROIC %: 31.25%
GF Value™: ₹948.22 vs. price of ₹502.90 (47% below fair value)
Industry Position: 730% above the Travel & Leisure median
No single metric tells the full story. See the NSE:IRCTC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Indian Railway Catering And Tourism Business Description
Indian Railway Catering And Tourism Corp Ltd is engaged in catering and hospitality services at stations, on trains, and other locations, and to promote domestic and international tourism through the development of budget hotels, special tour packages, information, and commercial publicity and world-wide reservation systems. The company's segments are Catering, Rail Neer, Internet Ticketing, and Tourism & Train Operation. A vast majority of its revenues are derived from the Catering business.
91GF Score
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