ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Lodha Developers's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 8.89%.
As of today (2026-07-03), Lodha Developers's WACC % is 18.12%. Lodha Developers's ROIC % is 8.06% (calculated using TTM income statement data).
Lodha Developers earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Lodha Developers (NSE:LODHA) 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, Lodha Developers's WACC % is 18.12%. Lodha Developers's ROIC % is 8.06% (calculated using TTM income statement data).
Lodha Developers 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.
Lodha Developers ROIC % Related Terms
Lodha Developers ROIC % Historical Data
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The historical data trend for Lodha Developers's ROIC % can be seen below:
* 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 Real Estate - Development subindustry, Lodha Developers'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.
Lodha Developers ROIC % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Lodha Developers's ROIC % distribution charts can be found below:
* The bar in red indicates where Lodha Developers'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.
Lodha Developers (NSE:LODHA) has a ROIC % of 8.89% 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 Lodha Developers and its competitors.
Is Lodha Developers' ROIC % too high?
Lodha Developers' current ROIC % is 8.89%. The Real Estate industry median ROIC % is 2.18. Lodha Developers' value of 8.89% is 307.8% above this industry median. Overall, Lodha Developers has a GF Score™ of 88/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Lodha Developers' ROIC % compare to competitors?
Lodha Developers' ROIC % of 8.89% can be compared against companies in the Real Estate industry. The industry median ROIC % is 2.18. Lodha Developers' value of 8.89% is 307.8% 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 Real Estate company?
The median ROIC % among Real Estate companies is 2.18, based on 1,756 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. Lodha Developers's current ROIC % of 8.89% is 307.8% 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 Lodha Developers and its competitors. For the Real Estate industry, the median ROIC % is 2.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lodha Developers's current ROIC % is 8.89%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lodha Developers stock overvalued right now?
Based on GuruFocus' analysis, Lodha Developers (NSE:LODHA) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹1,650.63, compared to a current price of ₹1,006.20 — trading 39% below its estimated fair value. The current ROIC % is 8.89% and 307.8% above the Real Estate industry median of 2.18. Lodha Developers' overall GF Score™ is 88/100 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 Lodha Developers (NSE:LODHA), the current ROIC % is 8.89% 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 Lodha Developers (NSE:LODHA) Overvalued in 2026?
Based on GuruFocus' analysis, Lodha Developers stock appears to be undervalued.
The current stock price of ₹1,006.20 is trading 39% below its estimated GF Value™ of ₹1,650.63.
GuruFocus considers Lodha Developers to be Significantly Undervalued.
Key valuation signals for NSE:LODHA:
ROIC %: 8.89%
GF Value™: ₹1,650.63 vs. price of ₹1,006.20 (39% below fair value)
Industry Position: 307.8% above the Real Estate median
No single metric tells the full story. See the NSE:LODHA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lodha Developers Ltd is a real estate developer in India. Its core business is residential real estate developments with a brand presence across luxury, premium, and mid-income housing segments. The company's portfolio includes approximately forty projects across three key real estate markets in India: Mumbai Metropolitan Region (MMR), Pune, and Bengaluru. In addition, it is involved in building select annuity income streams through facilities management, industrial and warehousing, and leasing of selected retail and office spaces. The company has introduced BelleVie, a digital platform that complements its facilities management business by connecting residents with a diverse range of customized marketplace services. It operates in one reportable segment, i.e., Real Estate development.
88GF Score
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