ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Kovai Medical Center & Hospital's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 11.92%.
As of today (2026-06-26), Kovai Medical Center & Hospital's WACC % is 10.32%. Kovai Medical Center & Hospital's ROIC % is 13.71% (calculated using TTM income statement data).
Kovai Medical Center & Hospital 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.
Kovai Medical Center & Hospital (NSE:KOVAI) 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, Kovai Medical Center & Hospital's WACC % is 10.32%. Kovai Medical Center & Hospital's ROIC % is 13.71% (calculated using TTM income statement data).
Kovai Medical Center & Hospital 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.
Kovai Medical Center & Hospital ROIC % Related Terms
Kovai Medical Center & Hospital 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 Medical Care Facilities subindustry, Kovai Medical Center & Hospital'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.
Kovai Medical Center & Hospital ROIC % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Kovai Medical Center & Hospital's ROIC % distribution charts can be found below:
* The bar in red indicates where Kovai Medical Center & Hospital'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.
Kovai Medical Center & Hospital (NSE:KOVAI) has a ROIC % of 11.92% 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 Kovai Medical Center & Hospital and its competitors.
Is Kovai Medical Center & Hospital's ROIC % too high?
Kovai Medical Center & Hospital's current ROIC % is 11.92%. The Healthcare Providers & Services industry median ROIC % is 3.06. Kovai Medical Center & Hospital's value of 11.92% is 289.5% above this industry median. Overall, Kovai Medical Center & Hospital has a GF Score™ of 75/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kovai Medical Center & Hospital's ROIC % compare to HCA and THC?
Kovai Medical Center & Hospital's ROIC % of 11.92% can be compared against companies in the Healthcare Providers & Services industry. The industry median ROIC % is 3.06. Kovai Medical Center & Hospital's value of 11.92% is 289.5% 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 Healthcare Providers & Services company?
The median ROIC % among Healthcare Providers & Services companies is 3.06, based on 671 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. Kovai Medical Center & Hospital's current ROIC % of 11.92% is 289.5% 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 Kovai Medical Center & Hospital and its competitors. For the Healthcare Providers & Services industry, the median ROIC % is 3.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kovai Medical Center & Hospital's current ROIC % is 11.92%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kovai Medical Center & Hospital stock overvalued right now?
Based on GuruFocus' analysis, Kovai Medical Center & Hospital (NSE:KOVAI) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹3,221.25, compared to a current price of ₹6,019.00 — trading 86.9% above its estimated fair value. The current ROIC % is 11.92% and 289.5% above the Healthcare Providers & Services industry median of 3.06. Kovai Medical Center & Hospital's overall GF Score™ is 75/100 with 1 warning sign 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 Kovai Medical Center & Hospital (NSE:KOVAI), the current ROIC % is 11.92% 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 Kovai Medical Center & Hospital (NSE:KOVAI) Overvalued in 2026?
Based on GuruFocus' analysis, Kovai Medical Center & Hospital stock appears to be overvalued.
The current stock price of ₹6,019.00 is trading 86.9% above its estimated GF Value™ of ₹3,221.25.
GuruFocus considers Kovai Medical Center & Hospital to be Significantly Overvalued.
Key valuation signals for NSE:KOVAI:
ROIC %: 11.92%
GF Value™: ₹3,221.25 vs. price of ₹6,019.00 (86.9% above fair value)
Industry Position: 289.5% above the Healthcare Providers & Services median
No single metric tells the full story. See the NSE:KOVAI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kovai Medical Center & Hospital Business Description
Kovai Medical Center & Hospital Ltd provides hospital services to inpatients and outpatients. The company's operating segments include Healthcare Services and Education Services. It generates maximum revenue from the Healthcare segment. The company operates various medical facilities, which provide services related to critical care medicine, dermatology, emergency, Endocrinology and Diabetology, Fertility and reproductive medicine, gastroenterology, neonatology, nephrology, neurology, obstetrics and gynecology, pediatric surgery, pulmonology, psychological medicine, and rheumatology, as well as health check programs and pediatrics.
75GF Score
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