ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Sharp Chucks and Machines's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2025 was 9.53%.
As of today (2026-06-25), Sharp Chucks and Machines's WACC % is 10.60%. Sharp Chucks and Machines's ROIC % is 9.53% (calculated using TTM income statement data).
Sharp Chucks and Machines earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Sharp Chucks and Machines (NSE:SCML) 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, Sharp Chucks and Machines's WACC % is 10.60%. Sharp Chucks and Machines's ROIC % is 9.53% (calculated using TTM income statement data).
Sharp Chucks and Machines 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.
Sharp Chucks and Machines ROIC % Chart
Sharp Chucks and Machines Annual Data
Trend
Mar21
Mar22
Mar23
Mar24
Mar25
ROIC %
7.05
7.14
6.87
8.39
9.53
Sharp Chucks and Machines Semi-Annual Data
Mar21
Mar22
Mar23
Mar24
Mar25
ROIC %
7.05
7.14
6.87
8.39
9.53
NSE:SCML vs GEV, ETN, PH: ROIC % Comparison
For the Specialty Industrial Machinery subindustry, Sharp Chucks and Machines'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.
Sharp Chucks and Machines ROIC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Sharp Chucks and Machines's ROIC % distribution charts can be found below:
* The bar in red indicates where Sharp Chucks and Machines's ROIC % falls into.
Note:
The Operating Income data used here is one times the 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.
Sharp Chucks and Machines (NSE:SCML) has a ROIC % of 9.53% 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 Sharp Chucks and Machines and its competitors.
Is Sharp Chucks and Machines' ROIC % too high?
Sharp Chucks and Machines' current ROIC % is 9.53%. The Industrial Products industry median ROIC % is 5.23. Sharp Chucks and Machines' value of 9.53% is 82.4% above this industry median. Overall, Sharp Chucks and Machines has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Sharp Chucks and Machines' ROIC % compare to GEV and ETN?
Sharp Chucks and Machines' ROIC % of 9.53% can be compared against companies in the Industrial Products industry. The industry median ROIC % is 5.23. Sharp Chucks and Machines' value of 9.53% is 82.4% 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 an Industrial Products company?
The median ROIC % among Industrial Products companies is 5.23, based on 3,040 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. Sharp Chucks and Machines's current ROIC % of 9.53% is 82.4% 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 Sharp Chucks and Machines and its competitors. For the Industrial Products industry, the median ROIC % is 5.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sharp Chucks and Machines's current ROIC % is 9.53%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sharp Chucks and Machines stock overvalued right now?
Sharp Chucks and Machines (NSE:SCML) has a current ROIC % of 9.53%. The current ROIC % is 9.53% and 82.4% above the Industrial Products industry median of 5.23. Sharp Chucks and Machines' overall GF Score™ is 12/100 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 Sharp Chucks and Machines (NSE:SCML), the current ROIC % is 9.53% 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.
Sharp Chucks and Machines Ltd is engaged in manufacturing forging products, casting products, and machined components, which have applications in tractors, automobiles, material handling and earth-moving equipment, railways, defense, machine tools, DIY industry, etc. Its product portfolio comprises back plates, spare studs, drill chucks, spare cam locks, lathe chucks, and power chucks, among others. The company also manufactures customized components as per customer-specific requirements and uses. Geographically, the company derives the majority of its revenue from its business in India, and also has some exposure to markets outside India.
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