ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Lux Industries's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 8.21%.
As of today (2026-07-01), Lux Industries's WACC % is 16.54%. Lux Industries's ROIC % is 5.37% (calculated using TTM income statement data).
Lux Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Lux Industries (NSE:LUXIND) 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, Lux Industries's WACC % is 16.54%. Lux Industries's ROIC % is 5.37% (calculated using TTM income statement data).
Lux Industries 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.
Lux Industries ROIC % Related Terms
Lux Industries ROIC % Historical Data
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The historical data trend for Lux Industries'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 Apparel Manufacturing subindustry, Lux Industries'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.
Lux Industries ROIC % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Lux Industries's ROIC % distribution charts can be found below:
* The bar in red indicates where Lux Industries'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.
Lux Industries (NSE:LUXIND) has a ROIC % of 8.21% 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 Lux Industries and its competitors.
Is Lux Industries' ROIC % too high?
Lux Industries' current ROIC % is 8.21%. The Manufacturing - Apparel & Accessories industry median ROIC % is 2.91. Lux Industries' value of 8.21% is 182.1% above this industry median. Overall, Lux Industries has a GF Score™ of 77/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Lux Industries' ROIC % compare to RL and LEVI?
Lux Industries' ROIC % of 8.21% can be compared against companies in the Manufacturing - Apparel & Accessories industry. The industry median ROIC % is 2.91. Lux Industries' value of 8.21% is 182.1% 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 Manufacturing - Apparel & Accessories company?
The median ROIC % among Manufacturing - Apparel & Accessories companies is 2.91, based on 1,045 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. Lux Industries's current ROIC % of 8.21% is 182.1% 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 Lux Industries and its competitors. For the Manufacturing - Apparel & Accessories industry, the median ROIC % is 2.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lux Industries's current ROIC % is 8.21%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lux Industries stock overvalued right now?
Based on GuruFocus' analysis, Lux Industries (NSE:LUXIND) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹1,693.10, compared to a current price of ₹1,225.40 — trading 27.6% below its estimated fair value. The current ROIC % is 8.21% and 182.1% above the Manufacturing - Apparel & Accessories industry median of 2.91. Lux Industries' overall GF Score™ is 77/100 with 6 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 Lux Industries (NSE:LUXIND), the current ROIC % is 8.21% 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 Lux Industries (NSE:LUXIND) Overvalued in 2026?
Based on GuruFocus' analysis, Lux Industries stock appears to be undervalued.
The current stock price of ₹1,225.40 is trading 27.6% below its estimated GF Value™ of ₹1,693.10.
GuruFocus considers Lux Industries to be Modestly Undervalued.
Key valuation signals for NSE:LUXIND:
ROIC %: 8.21%
GF Value™: ₹1,693.10 vs. price of ₹1,225.40 (27.6% below fair value)
Industry Position: 182.1% above the Manufacturing - Apparel & Accessories median
No single metric tells the full story. See the NSE:LUXIND stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lux Industries Ltd is an Indian company that is engaged in manufacturing and sales of knitwear for men, women, and children. The company's products include briefs, trunks, drawers, vests, Bermudas, t-shirts, socks, leggings, bloomers, slacks and slips, and winter wear. It has three distinct business verticals each specializing in the production, marketing, and distribution of products under various brands such as; Vertical A comprises Lux Cozi, ONN, Lux Cotts wool, Lux Mozze, and One8 brands; Vertical B includes Lux Venus, Lyra, Lux Inferno, and Lux Nitro; and Vertical C includes GenX, Lux Classic, Lux Karishma, and Lux Amore brands. Maximum revenue is generated from Verticle B. Geographically, it caters to both domestic and international markets and derives its key revenue within India.
77GF Score
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