ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Mangalam Organics's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 14.36%.
As of today (2026-07-07), Mangalam Organics's WACC % is 10.55%. Mangalam Organics's ROIC % is 7.41% (calculated using TTM income statement data).
Mangalam Organics earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Mangalam Organics (NSE:MANORG) 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, Mangalam Organics's WACC % is 10.55%. Mangalam Organics's ROIC % is 7.41% (calculated using TTM income statement data).
Mangalam Organics 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.
Mangalam Organics ROIC % Related Terms
Mangalam Organics ROIC % Historical Data
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The historical data trend for Mangalam Organics'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 Specialty Chemicals subindustry, Mangalam Organics'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.
Mangalam Organics ROIC % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Mangalam Organics's ROIC % distribution charts can be found below:
* The bar in red indicates where Mangalam Organics'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.
Mangalam Organics (NSE:MANORG) has a ROIC % of 14.36% 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 Mangalam Organics and its competitors.
Is Mangalam Organics' ROIC % too high?
Mangalam Organics' current ROIC % is 14.36%. The Chemicals industry median ROIC % is 4.47. Mangalam Organics' value of 14.36% is 221.3% above this industry median. Overall, Mangalam Organics has a GF Score™ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Mangalam Organics' ROIC % compare to LIN and SHW?
Mangalam Organics' ROIC % of 14.36% can be compared against companies in the Chemicals industry. The industry median ROIC % is 4.47. Mangalam Organics' value of 14.36% is 221.3% 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 Chemicals company?
The median ROIC % among Chemicals companies is 4.47, based on 1,575 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. Mangalam Organics's current ROIC % of 14.36% is 221.3% 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 Mangalam Organics and its competitors. For the Chemicals industry, the median ROIC % is 4.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mangalam Organics's current ROIC % is 14.36%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mangalam Organics stock overvalued right now?
Based on GuruFocus' analysis, Mangalam Organics (NSE:MANORG) is currently considered Fairly Valued. The stock's GF Value™ is ₹547.41, compared to a current price of ₹531.85 — trading 2.8% below its estimated fair value. The current ROIC % is 14.36% and 221.3% above the Chemicals industry median of 4.47. Mangalam Organics' overall GF Score™ is 80/100 with 3 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 Mangalam Organics (NSE:MANORG), the current ROIC % is 14.36% 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 Mangalam Organics (NSE:MANORG) Overvalued in 2026?
Based on GuruFocus' analysis, Mangalam Organics stock appears to be undervalued.
The current stock price of ₹531.85 is trading 2.8% below its estimated GF Value™ of ₹547.41.
GuruFocus considers Mangalam Organics to be Fairly Valued.
Key valuation signals for NSE:MANORG:
ROIC %: 14.36%
GF Value™: ₹547.41 vs. price of ₹531.85 (2.8% below fair value)
Industry Position: 221.3% above the Chemicals median
No single metric tells the full story. See the NSE:MANORG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mangalam Organics Ltd is an India-based company involved in manufacturing chemicals. It is engaged in manufacturing Camphor, Resin, and Sodium Acetate. It has Terpenes and Synthetic Resins as a primary segment, which falls under a single segment of chemicals. Its production unit is located in Kumbhivali, Maharashtra state, India. The terpene products segment, which generates a vast majority of the revenue, includes Camphor technical, Camphene, Isobornyl acetate, Isoborneol, Dipentene, Camphor oil, Pine tar, Pine oil among others. Its resin products include Penta ester gum, Glycerol ester gum, and Gum rosin among others.
80GF Score
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