ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Vaidyane Ayurved Laboratories's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 10.27%.
As of today (2026-07-07), Vaidyane Ayurved Laboratories's WACC % is 14.98%. Vaidyane Ayurved Laboratories's ROIC % is 12.36% (calculated using TTM income statement data).
Vaidyane Ayurved Laboratories earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, Vaidyane Ayurved Laboratories's WACC % is 14.98%. Vaidyane Ayurved Laboratories's ROIC % is 12.36% (calculated using TTM income statement data).
Vaidyane Ayurved Laboratories 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.
Vaidyane Ayurved Laboratories ROIC % Related Terms
Vaidyane Ayurved Laboratories 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 Drug Manufacturers - Specialty & Generic subindustry, Vaidyane Ayurved Laboratories'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.
Vaidyane Ayurved Laboratories ROIC % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Vaidyane Ayurved Laboratories's ROIC % distribution charts can be found below:
* The bar in red indicates where Vaidyane Ayurved Laboratories's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (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.
Vaidyane Ayurved Laboratories (NSE:MADHAVBAUG) has a ROIC % of 10.27% 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 Vaidyane Ayurved Laboratories and its competitors.
Is Vaidyane Ayurved Laboratories' ROIC % too high?
Vaidyane Ayurved Laboratories' current ROIC % is 10.27%. The Drug Manufacturers industry median ROIC % is 4.50. Vaidyane Ayurved Laboratories' value of 10.27% is 128.5% above this industry median. Overall, Vaidyane Ayurved Laboratories has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Vaidyane Ayurved Laboratories' ROIC % compare to ZTS and UTHR?
Vaidyane Ayurved Laboratories' ROIC % of 10.27% can be compared against companies in the Drug Manufacturers industry. The industry median ROIC % is 4.50. Vaidyane Ayurved Laboratories' value of 10.27% is 128.5% 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 Drug Manufacturers company?
The median ROIC % among Drug Manufacturers companies is 4.50, based on 986 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. Vaidyane Ayurved Laboratories's current ROIC % of 10.27% is 128.5% 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 Vaidyane Ayurved Laboratories and its competitors. For the Drug Manufacturers industry, the median ROIC % is 4.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vaidyane Ayurved Laboratories's current ROIC % is 10.27%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vaidyane Ayurved Laboratories stock overvalued right now?
Based on GuruFocus' analysis, Vaidyane Ayurved Laboratories (NSE:MADHAVBAUG) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹228.10, compared to a current price of ₹182.00 — trading 20.2% below its estimated fair value. The current ROIC % is 10.27% and 128.5% above the Drug Manufacturers industry median of 4.50. Vaidyane Ayurved Laboratories' overall GF Score™ is 84/100 with 4 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 Vaidyane Ayurved Laboratories (NSE:MADHAVBAUG), the current ROIC % is 10.27% 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 Vaidyane Ayurved Laboratories (NSE:MADHAVBAUG) Overvalued in 2026?
Based on GuruFocus' analysis, Vaidyane Ayurved Laboratories stock appears to be undervalued.
The current stock price of ₹182.00 is trading 20.2% below its estimated GF Value™ of ₹228.10.
GuruFocus considers Vaidyane Ayurved Laboratories to be Modestly Undervalued.
Key valuation signals for NSE:MADHAVBAUG:
ROIC %: 10.27%
GF Value™: ₹228.10 vs. price of ₹182.00 (20.2% below fair value)
Industry Position: 128.5% above the Drug Manufacturers median
No single metric tells the full story. See the NSE:MADHAVBAUG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Vaidyane Ayurved Laboratories Business Description
Vaidya Sane Ayurved Laboratories Ltd is a medical service institution. The company engaged in research and development in Ayurvedic Medicines and the sale of Ayurvedic medicines & products through its various franchises and own clinics. The Company is also engaged in providing Ayurved medical professional services across its various clinics, including panchkarma and other Ayurvedic treatments through the running of an Ayurvedic Hospital. The company mainly offers treatment for health disease reversal, diabetes reversal, BP management, obesity management, and knee pain relief. The company's business is divided into three segments, i.e., Hospital Activity, Sale of Product, and Common. It derives maximum revenue from the sale of Products.
84GF Score
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