ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Vardhman Special Steels's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 9.46%.
As of today (2026-06-26), Vardhman Special Steels's WACC % is 14.48%. Vardhman Special Steels's ROIC % is 9.41% (calculated using TTM income statement data).
Vardhman Special Steels earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Vardhman Special Steels (NSE:VSSL) 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, Vardhman Special Steels's WACC % is 14.48%. Vardhman Special Steels's ROIC % is 9.41% (calculated using TTM income statement data).
Vardhman Special Steels 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 Steel subindustry, Vardhman Special Steels'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.
Vardhman Special Steels ROIC % vs Steel Industry
For the Steel industry and Basic Materials sector, Vardhman Special Steels's ROIC % distribution charts can be found below:
* The bar in red indicates where Vardhman Special Steels'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.
Vardhman Special Steels (NSE:VSSL) has a ROIC % of 9.46% 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 Vardhman Special Steels and its competitors.
Is Vardhman Special Steels' ROIC % too high?
Vardhman Special Steels' current ROIC % is 9.46%. The Steel industry median ROIC % is 2.61. Vardhman Special Steels' value of 9.46% is 262.5% above this industry median. Overall, Vardhman Special Steels has a GF Score™ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Vardhman Special Steels' ROIC % compare to NUE and STLD?
Vardhman Special Steels' ROIC % of 9.46% can be compared against companies in the Steel industry. The industry median ROIC % is 2.61. Vardhman Special Steels' value of 9.46% is 262.5% 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 2.61, based on 625 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. Vardhman Special Steels's current ROIC % of 9.46% is 262.5% 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 Vardhman Special Steels and its competitors. For the Steel industry, the median ROIC % is 2.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vardhman Special Steels's current ROIC % is 9.46%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vardhman Special Steels stock overvalued right now?
Based on GuruFocus' analysis, Vardhman Special Steels (NSE:VSSL) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹224.07, compared to a current price of ₹282.90 — trading 26.3% above its estimated fair value. The current ROIC % is 9.46% and 262.5% above the Steel industry median of 2.61. Vardhman Special Steels' overall GF Score™ is 75/100 with 7 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 Vardhman Special Steels (NSE:VSSL), the current ROIC % is 9.46% 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 Vardhman Special Steels (NSE:VSSL) Overvalued in 2026?
Based on GuruFocus' analysis, Vardhman Special Steels stock appears to be overvalued.
The current stock price of ₹282.90 is trading 26.3% above its estimated GF Value™ of ₹224.07.
GuruFocus considers Vardhman Special Steels to be Modestly Overvalued.
Key valuation signals for NSE:VSSL:
ROIC %: 9.46%
GF Value™: ₹224.07 vs. price of ₹282.90 (26.3% above fair value)
No single metric tells the full story. See the NSE:VSSL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Vardhman Special Steels Ltd is engaged in manufacturing steel bars and rods. The company caters to diverse requirements of hot-rolled bars for Engineering, Automotive, Tractor, Bearing and Allied Industries. Its products include Carbon steel, Carbon manganese steel, Chrome steel, Chrome manganese steel, Chrome moly steel, Boron steel, Vanadium steel, and Ball bearing steel. The company manufactures products using techniques such as Steel melting, Rolling Mill, Heat treatment and Bright bar shop. It generates a majority of its revenue from the sale of black bars. The company's operations are mainly located within India and also has a presence outside India.
75GF Score
Get the complete analysis for NSE:VSSL
ROIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NSE:VSSL has been successfully added to your 
