ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Royal Orchid Hotels's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 4.22%.
As of today (2026-07-12), Royal Orchid Hotels's WACC % is 10.90%. Royal Orchid Hotels's ROIC % is 4.90% (calculated using TTM income statement data).
Royal Orchid Hotels earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Royal Orchid Hotels (NSE:ROHLTD) 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, Royal Orchid Hotels's WACC % is 10.90%. Royal Orchid Hotels's ROIC % is 4.90% (calculated using TTM income statement data).
Royal Orchid Hotels 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.
Royal Orchid Hotels ROIC % Related Terms
Royal Orchid Hotels ROIC % Historical Data
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The historical data trend for Royal Orchid Hotels'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 Lodging subindustry, Royal Orchid Hotels'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.
Royal Orchid Hotels ROIC % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Royal Orchid Hotels's ROIC % distribution charts can be found below:
* The bar in red indicates where Royal Orchid Hotels'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.
Royal Orchid Hotels (NSE:ROHLTD) has a ROIC % of 4.22% 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 Royal Orchid Hotels and its competitors.
Is Royal Orchid Hotels' ROIC % too high?
Royal Orchid Hotels' current ROIC % is 4.22%. The Travel & Leisure industry median ROIC % is 3.77. Royal Orchid Hotels' value of 4.22% is 11.9% above this industry median. Overall, Royal Orchid Hotels has a GF Score™ of 74/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Royal Orchid Hotels' ROIC % compare to MAR and HLT?
Royal Orchid Hotels' ROIC % of 4.22% can be compared against companies in the Travel & Leisure industry. The industry median ROIC % is 3.77. Royal Orchid Hotels' value of 4.22% is 11.9% 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 Travel & Leisure company?
The median ROIC % among Travel & Leisure companies is 3.77, based on 833 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. Royal Orchid Hotels's current ROIC % of 4.22% is 11.9% 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 Royal Orchid Hotels and its competitors. For the Travel & Leisure industry, the median ROIC % is 3.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Royal Orchid Hotels's current ROIC % is 4.22%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Royal Orchid Hotels stock overvalued right now?
Based on GuruFocus' analysis, Royal Orchid Hotels (NSE:ROHLTD) is currently considered Possible Value Trap. The stock's GF Value™ is ₹483.70, compared to a current price of ₹326.70 — trading 32.5% below its estimated fair value. The current ROIC % is 4.22% and 11.9% above the Travel & Leisure industry median of 3.77. Royal Orchid Hotels' overall GF Score™ is 74/100 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 Royal Orchid Hotels (NSE:ROHLTD), the current ROIC % is 4.22% 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 Royal Orchid Hotels (NSE:ROHLTD) Overvalued in 2026?
Based on GuruFocus' analysis, Royal Orchid Hotels stock appears to be undervalued.
The current stock price of ₹326.70 is trading 32.5% below its estimated GF Value™ of ₹483.70.
GuruFocus considers Royal Orchid Hotels to be Possible Value Trap.
Key valuation signals for NSE:ROHLTD:
ROIC %: 4.22%
GF Value™: ₹483.70 vs. price of ₹326.70 (32.5% below fair value)
Industry Position: 11.9% above the Travel & Leisure median
No single metric tells the full story. See the NSE:ROHLTD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Royal Orchid Hotels Ltd is an Indian company involved in accommodation and food service activities, such as hotels, resorts, and restaurants, and food and beverage services activities, such as restaurants and mobile food services. It operates and manages hotels/resorts, and provides related services. It offers a range of options for business hotels ranging from luxurious five-star hotels to economy business hotels. The company operates hotels in different parts of India including Ahmedabad, Amritsar, Bangalore, Chandigarh, Chennai, Dwarka, Goa, Gurgaon, Haridwar, Jaipur, Kolkata, and Mahabaleshwar among others.
74GF Score
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