ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Religare Enterprises's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 3.25%.
As of today (2026-07-12), Religare Enterprises's WACC % is 9.37%. Religare Enterprises's ROIC % is 0.50% (calculated using TTM income statement data).
Religare Enterprises 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, Religare Enterprises's WACC % is 9.37%. Religare Enterprises's ROIC % is 0.50% (calculated using TTM income statement data).
Religare Enterprises 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.
* 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 Insurance - Life subindustry, Religare Enterprises'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.
Religare Enterprises ROIC % vs Insurance Industry
For the Insurance industry and Financial Services sector, Religare Enterprises's ROIC % distribution charts can be found below:
* The bar in red indicates where Religare Enterprises'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.
Religare Enterprises (NSE:RELIGARE) has a ROIC % of 3.25% 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 Religare Enterprises and its competitors.
Is Religare Enterprises' ROIC % too high?
Religare Enterprises' current ROIC % is 3.25%. The Insurance industry median ROIC % is 3.36. Religare Enterprises' value of 3.25% is 3.3% below this industry median. Overall, Religare Enterprises has a GF Score™ of 72/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Religare Enterprises' ROIC % compare to AFL and MET?
Religare Enterprises' ROIC % of 3.25% can be compared against companies in the Insurance industry. The industry median ROIC % is 3.36. Religare Enterprises' value of 3.25% is 3.3% below 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 an Insurance company?
The median ROIC % among Insurance companies is 3.36, based on 372 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. Religare Enterprises's current ROIC % of 3.25% is 3.3% below 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 Religare Enterprises and its competitors. For the Insurance industry, the median ROIC % is 3.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Religare Enterprises's current ROIC % is 3.25%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Religare Enterprises stock overvalued right now?
Based on GuruFocus' analysis, Religare Enterprises (NSE:RELIGARE) is currently considered Possible Value Trap. The stock's GF Value™ is ₹438.07, compared to a current price of ₹270.45 — trading 38.3% below its estimated fair value. The current ROIC % is 3.25% and 3.3% below the Insurance industry median of 3.36. Religare Enterprises' overall GF Score™ is 72/100 with 5 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 Religare Enterprises (NSE:RELIGARE), the current ROIC % is 3.25% 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 Religare Enterprises (NSE:RELIGARE) Overvalued in 2026?
Based on GuruFocus' analysis, Religare Enterprises stock appears to be undervalued.
The current stock price of ₹270.45 is trading 38.3% below its estimated GF Value™ of ₹438.07.
GuruFocus considers Religare Enterprises to be Possible Value Trap.
Key valuation signals for NSE:RELIGARE:
ROIC %: 3.25%
GF Value™: ₹438.07 vs. price of ₹270.45 (38.3% below fair value)
Industry Position: 3.3% below the Insurance median
No single metric tells the full story. See the NSE:RELIGARE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Religare Enterprises Ltd is an India-based company that is principally engaged in providing diversified financial services, including loans to small and midsize enterprises, affordable housing finance, health insurance, capital markets, and wealth management. The company operates via various subsidiaries and operating entities such as Insurance (Health and Travel - Care Health Insurance Limited), Retail Broking (Religare Broking Limited), SME Finance (NBFC) Religare Finvest Limited, Housing Finance (Affordable) [Religare Housing Development Finance Corporation Limited]. It generates around two-thirds of total revenue from investment and financing activity. The company concentrates its business in India and generates the majority of revenue from the domestic market.
72GF Score
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