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Hindustan CompositesBOM:509635 +0.01%74 3-Year ROIIC % is 2.27 as of Mar. 2026, which is 20% below its 10-year median of 2.85. GuruFocus rates BOM:509635 with a GF Score™ of 74/100 and a GF Value™ of ₹456.20 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,253 Vehicles & Parts companies, Hindustan Composites ranks worse than 54.35% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Hindustan Composites's 3-Year ROIIC % for the quarter that ended in Mar. 2026 was 2.27%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Hindustan Composites's 3-Year ROIIC % or its related term are showing as below:
BOM:509635's 3-Year ROIIC % is ranked worse than 54.35% of 1253
companies
in the Vehicles & Parts industry
Industry Median: 4.24
vs BOM:509635: 2.27
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Hindustan Composites 3-Year ROIIC % Related Terms
Hindustan Composites 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Hindustan Composites's 3-Year ROIIC % 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.
BOM:509635 vs ORLY, AZO: 3-Year ROIIC % Comparison
For the Auto Parts subindustry, Hindustan Composites's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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.
Hindustan Composites 3-Year ROIIC % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Hindustan Composites's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Hindustan Composites's 3-Year ROIIC % falls into.
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Hindustan Composites (BOM:509635) has a 3-Year ROIIC % of 2.27 as of Mar. 2026. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Hindustan Composites and its competitors. This is 20% below median its historical median of 2.85. According to the industry distribution chart, Hindustan Composites ranks #681 out of 1253 companies in the Vehicles & Parts industry, placing it in the top 54.3%.
Is Hindustan Composites' 3-Year ROIIC % too high?
Hindustan Composites' current 3-Year ROIIC % of 2.27 is 20% below median its 10-year median of 2.85. The Vehicles & Parts industry median 3-Year ROIIC % is 4.24. Hindustan Composites' value of 2.27 is 46.5% below this industry median. Based on the distribution chart, Hindustan Composites ranks #681 out of 1253 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Hindustan Composites has a GF Score™ of 74/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hindustan Composites' 3-Year ROIIC % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Hindustan Composites ranks #681 out of 1253 companies for 3-Year ROIIC %. This places Hindustan Composites in the lower half of its industry. The industry median 3-Year ROIIC % is 4.24. Hindustan Composites' value of 2.27 is 46.5% below this benchmark. While the company's 10-year median is 2.85 vs. the industry median of 4.24, Hindustan Composites has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for a Vehicles & Parts company?
The median 3-Year ROIIC % among Vehicles & Parts companies is 4.24, based on 1,253 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hindustan Composites's current 3-Year ROIIC % of 2.27 is 46.5% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Hindustan Composites and its competitors. For the Vehicles & Parts industry, the median 3-Year ROIIC % is 4.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hindustan Composites's current 3-Year ROIIC % is 2.27, which is 20% below median its own 10-year median of 2.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hindustan Composites stock overvalued right now?
Based on GuruFocus' analysis, Hindustan Composites (BOM:509635) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹456.20, compared to a current price of ₹410.05 — trading 10.1% below its estimated fair value. The current 3-Year ROIIC % is 2.27, which is 20% below median its 10-year median of 2.85 and 46.5% below the Vehicles & Parts industry median of 4.24. Hindustan Composites' overall GF Score™ is 74/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Hindustan Composites (BOM:509635), the current 3-Year ROIIC % is 2.27 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 Hindustan Composites (BOM:509635) Overvalued in 2026?
Based on GuruFocus' analysis, Hindustan Composites stock appears to be undervalued.
The current stock price of ₹410.05 is trading 10.1% below its estimated GF Value™ of ₹456.20.
GuruFocus considers Hindustan Composites to be Modestly Undervalued.
Key valuation signals for BOM:509635:
3-Year ROIIC %: 2.27 (20% below median its 10-year median of 2.85)
GF Value™: ₹456.20 vs. price of ₹410.05 (10.1% below fair value)
Industry Position: 46.5% below the Vehicles & Parts median (#681 of 1253)
No single metric tells the full story. See the BOM:509635 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hindustan Composites Ltd is engaged in the business of manufacturing and marketing fiber-based friction materials. The company serves various industries, such as automotive, railways, engineering, mining, aerospace, steel, chemicals, oil exploration, and others. It offers friction materials such as Brake lining, Roll lining, Clutch facing, Disc Brake Pad, Brake Block, and others. It also offers industrial thrust bearing and insulation products comprising Millboard sheets, Millboard discs, and Competitors. Geographically, the group operates throughout the regions of India and derives revenue through the sale of its products. The group has two segments: Composite products and Investments. Composite product is the key revenue-generating segment.
74GF Score
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