Suba Hotels (NSE:SUBAHOTELS) ROIC %: 13.12% (As of Mar. 2025)

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NSE:SUBAHOTELS Suba Hotels Ltd NSE:SUBAHOTELS
17 GF Score
Price ₹98.30
! 2 Warning Signs
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What is Suba Hotels ROIC %?

Suba Hotels NSE:SUBAHOTELS -1.70% 17 ROIC % is 13.12% as of Mar. 2025. GuruFocus rates NSE:SUBAHOTELS with a GF Score™ of 17/100. The stock has 2 warning signs investors should review.

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Suba Hotels's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2025 was 13.12%.

As of today (2026-09-06), Suba Hotels's WACC % is 11.10%. Suba Hotels's ROIC % is 13.12% (calculated using TTM income statement data). Suba Hotels generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.


Suba Hotels  (NSE:SUBAHOTELS) 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, Suba Hotels's WACC % is 11.10%. Suba Hotels's ROIC % is 13.12% (calculated using TTM income statement data). Suba Hotels generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.


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.


Suba Hotels ROIC % Related Terms


Suba Hotels ROIC % Historical Data

* Premium members only.

The historical data trend for Suba 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.

Suba Hotels ROIC % Chart

Suba Hotels Annual Data
Trend Mar22 Mar23 Mar24 Mar25
ROIC %
1.59 2.80 8.11 13.12

Suba Hotels Semi-Annual Data
Mar22 Mar23 Mar24 Mar25
ROIC % 1.59 2.80 8.11 13.12

NSE:SUBAHOTELS vs MAR, HLT, H: ROIC % Comparison

For the Lodging subindustry, Suba 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.


Suba Hotels ROIC % vs Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Suba Hotels's ROIC % distribution charts can be found below:

* The bar in red indicates where Suba Hotels's ROIC % falls into.


NSE:SUBAHOTELS
17GF Score
Suba Hotels Ltd NSE:SUBAHOTELS
ROIC % is just one metric. See GF Score™, valuation, warning signs, and more.
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Suba Hotels ROIC % Calculation

Suba Hotels's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Mar. 2025 is calculated as:

ROIC % (A: Mar. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Mar. 2024 ) + Invested Capital (A: Mar. 2025 ))/ count )
=205.709 * ( 1 - 21.62% )/( (1129.374 + 1327.7)/ 2 )
=161.2347142/1228.537
=13.12 %

where

Invested Capital(A: Mar. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1000.709 - 113.006 - ( 40.519 - max(0, 538.324 - 296.653+40.519))
=1129.374

Suba Hotels's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Mar. 2025 is calculated as:

ROIC % (Q: Mar. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2024 ) + Invested Capital (Q: Mar. 2025 ))/ count )
=205.709 * ( 1 - 21.62% )/( (1129.374 + 1327.7)/ 2 )
=161.2347142/1228.537
=13.12 %

where

Invested Capital(Q: Mar. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1000.709 - 113.006 - ( 40.519 - max(0, 538.324 - 296.653+40.519))
=1129.374

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.

Frequently Asked Questions Learn more about ROIC % →
What does a ROIC % of 13.12% mean?
Suba Hotels (NSE:SUBAHOTELS) has a ROIC % of 13.12% 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 Suba Hotels and its competitors.
Is Suba Hotels' ROIC % too high?
Suba Hotels' current ROIC % is 13.12%. The Travel & Leisure industry median ROIC % is 3.76. Suba Hotels' value of 13.12% is 248.9% above this industry median. Overall, Suba Hotels has a GF Score™ of 17/100, reflecting its overall financial health beyond just this single metric.
How does Suba Hotels' ROIC % compare to MAR and HLT?
Suba Hotels' ROIC % of 13.12% can be compared against companies in the Travel & Leisure industry. The industry median ROIC % is 3.76. Suba Hotels' value of 13.12% is 248.9% 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 3.76, based on 834 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. Suba Hotels's current ROIC % of 13.12% is 248.9% 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 Suba Hotels and its competitors. For the Travel & Leisure industry, the median ROIC % is 3.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Suba Hotels's current ROIC % is 13.12%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Suba Hotels stock overvalued right now?
Suba Hotels (NSE:SUBAHOTELS) has a current ROIC % of 13.12%. The current ROIC % is 13.12% and 248.9% above the Travel & Leisure industry median of 3.76. Suba Hotels' overall GF Score™ is 17/100 with 2 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 Suba Hotels (NSE:SUBAHOTELS), the current ROIC % is 13.12% 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.

Suba Hotels Business Description

Address Off Ganpat Rao Kadam Marg, B2-1004, Marathon Nextgen Innova, Opposite Peninsula Park, Lower Parel, Mumbai, MH, IND, 400 013
Suba Hotels Ltd is a domestic hotel chains in the mid-market sector with approximately 88 operational hotels, comprising 4,096 keys across over 50 cities. It operates in the mid-market hotel sector, consisting of upscale, upper-midscale, midscale, and economy brands domestic as well as international. The company caters to guests across business, leisure, and religious tourism, delivering superior service standards at attractive price points. Its hotel portfolio encompasses a diverse range of business models, including owned, managed, revenue share & lease, and franchised properties.
17GF Score

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