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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Newmalayalam Steel's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2025 was 43.33%.
As of today (2026-07-31), Newmalayalam Steel's WACC % is 0.00%. Newmalayalam Steel's ROIC % is 0.00% (calculated using TTM income statement data).
Newmalayalam Steel 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, Newmalayalam Steel's WACC % is 0.00%. Newmalayalam Steel's ROIC % is 0.00% (calculated using TTM income statement data).
Newmalayalam Steel 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.
Newmalayalam Steel ROIC % Related Terms
Newmalayalam Steel ROIC % Historical Data
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The historical data trend for Newmalayalam Steel'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.
Newmalayalam Steel ROIC % Chart
Newmalayalam Steel Annual Data
Trend
Mar22
Mar23
Mar24
Mar25
ROIC %
-10.21
1.88
5.65
4.36
Newmalayalam Steel Semi-Annual Data
Mar22
Mar23
Mar24
Sep24
Mar25
ROIC %
0.00
0.00
0.00
-26.96
43.33
NSE:NMSTEEL vs NUE, STLD, RS: ROIC % Comparison
For the Steel subindustry, Newmalayalam Steel'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.
Newmalayalam Steel ROIC % vs Steel Industry
For the Steel industry and Basic Materials sector, Newmalayalam Steel's ROIC % distribution charts can be found below:
* The bar in red indicates where Newmalayalam Steel's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Mar. 2025) 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.
Newmalayalam Steel (NSE:NMSTEEL) has a ROIC % of 43.33% as of Mar. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Newmalayalam Steel and its competitors.
Is Newmalayalam Steel's ROIC % too high?
Newmalayalam Steel's current ROIC % is 43.33%. The Steel industry median ROIC % is 2.59. Newmalayalam Steel's value of 43.33% is 1573% above this industry median. Overall, Newmalayalam Steel has a GF Score™ of 13/100, reflecting its overall financial health beyond just this single metric.
How does Newmalayalam Steel's ROIC % compare to NUE and STLD?
Newmalayalam Steel's ROIC % of 43.33% can be compared against companies in the Steel industry. The industry median ROIC % is 2.59. Newmalayalam Steel's value of 43.33% is 1573% 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 Steel company?
The median ROIC % among Steel companies is 2.59, based on 622 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. Newmalayalam Steel's current ROIC % of 43.33% is 1573% 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 Newmalayalam Steel and its competitors. For the Steel industry, the median ROIC % is 2.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Newmalayalam Steel's current ROIC % is 43.33%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Newmalayalam Steel stock overvalued right now?
Newmalayalam Steel (NSE:NMSTEEL) has a current ROIC % of 43.33%. The current ROIC % is 43.33% and 1573% above the Steel industry median of 2.59. Newmalayalam Steel's overall GF Score™ is 13/100. 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 Newmalayalam Steel (NSE:NMSTEEL), the current ROIC % is 43.33% as of Mar. 2025. 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.
Newmalayalam Steel Ltd is engaged in the manufacturing of galvanized pipes, tubes, and sheets. The Galvanized pipes and tubes are used for building roofs to reduce heat and avoid leakage, further, the galvanization process offers an added advantage of increasing the life of the product and enhancing its quality by making it rust-free. Its products are therefore manufactured to provide an effective solution to the continuous damage caused to houses in Kerala on account of inclement weather conditions.
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