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Salem Erode InvestmentsBOM:540181 -5.91%59 3-Year ROIIC % is 101.77 as of Mar. 2026, which is 2585% above its 10-year median of 3.79. GuruFocus rates BOM:540181 with a GF Score™ of 59/100 and a GF Value™ of ₹35.74 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 394 Credit Services companies, Salem Erode Investments ranks better than 94.42% 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.
Salem Erode Investments's 3-Year ROIIC % for the quarter that ended in Mar. 2026 was 101.77%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Salem Erode Investments's 3-Year ROIIC % or its related term are showing as below:
BOM:540181's 3-Year ROIIC % is ranked better than 94.42% of 394
companies
in the Credit Services industry
Industry Median: 2.9
vs BOM:540181: 101.77
Salem Erode Investments (BOM:540181) 3-Year ROIIC % Explanation
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.
Salem Erode Investments 3-Year ROIIC % Related Terms
Salem Erode Investments 3-Year ROIIC % Historical Data
* 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:540181 vs V, MA, AXP: 3-Year ROIIC % Comparison
For the Credit Services subindustry, Salem Erode Investments'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.
Salem Erode Investments 3-Year ROIIC % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Salem Erode Investments's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Salem Erode Investments's 3-Year ROIIC % falls into.
Salem Erode Investments 3-Year ROIIC % Calculation
Salem Erode Investments's 3-Year ROIIC % for the quarter that ended in Mar. 2026 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( -49.0509888 (Mar. 2026) - -0.439 (Mar. 2023) )
/
( 297.354 (Mar. 2026) - 345.122 (Mar. 2023) )
=
-48.6119888
/
-47.768
=
101.77%***
* 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.
Salem Erode Investments (BOM:540181) has a 3-Year ROIIC % of 101.77 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 Salem Erode Investments and its competitors. This is 2585% above median its historical median of 3.79. According to the industry distribution chart, Salem Erode Investments ranks #22 out of 394 companies in the Credit Services industry, placing it in the top 5.6%.
Is Salem Erode Investments' 3-Year ROIIC % too high?
Salem Erode Investments' current 3-Year ROIIC % of 101.77 is 2585% above median its 10-year median of 3.79. The Credit Services industry median 3-Year ROIIC % is 2.90. Salem Erode Investments' value of 101.77 is 3409.3% above this industry median. Based on the distribution chart, Salem Erode Investments ranks #22 out of 394 companies in the Credit Services industry, which is in the top quartile — a strong position relative to peers. Overall, Salem Erode Investments has a GF Score™ of 59/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Salem Erode Investments' 3-Year ROIIC % compare to V and MA?
According to the Credit Services industry distribution chart, Salem Erode Investments ranks #22 out of 394 companies for 3-Year ROIIC %. This places Salem Erode Investments in the top 6% of its industry — outperforming the majority of peers. The industry median 3-Year ROIIC % is 2.90. Salem Erode Investments' value of 101.77 is 3409.3% above this benchmark. While the company's 10-year median is 3.79 vs. the industry median of 2.90, Salem Erode Investments has consistently been above 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 Credit Services company?
The median 3-Year ROIIC % among Credit Services companies is 2.90, based on 394 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. Salem Erode Investments's current 3-Year ROIIC % of 101.77 is 3409.3% 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 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 Salem Erode Investments and its competitors. For the Credit Services industry, the median 3-Year ROIIC % is 2.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Salem Erode Investments's current 3-Year ROIIC % is 101.77, which is 2585% above median its own 10-year median of 3.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Salem Erode Investments stock overvalued right now?
Based on GuruFocus' analysis, Salem Erode Investments (BOM:540181) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹35.74, compared to a current price of ₹27.83 — trading 22.1% below its estimated fair value. The current 3-Year ROIIC % is 101.77, which is 2585% above median its 10-year median of 3.79 and 3409.3% above the Credit Services industry median of 2.90. Salem Erode Investments' overall GF Score™ is 59/100 with 5 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 Salem Erode Investments (BOM:540181), the current 3-Year ROIIC % is 101.77 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 Salem Erode Investments (BOM:540181) Overvalued in 2026?
Based on GuruFocus' analysis, Salem Erode Investments stock appears to be undervalued.
The current stock price of ₹27.83 is trading 22.1% below its estimated GF Value™ of ₹35.74.
GuruFocus considers Salem Erode Investments to be Modestly Undervalued.
Key valuation signals for BOM:540181:
3-Year ROIIC %: 101.77 (2585% above median its 10-year median of 3.79)
GF Value™: ₹35.74 vs. price of ₹27.83 (22.1% below fair value)
Industry Position: 3409.3% above the Credit Services median (#22 of 394)
No single metric tells the full story. See the BOM:540181 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Salem Erode Investments Ltd is engaged in the lending and investment business in India. It is a finance company that helps to secure the future financially and helps in the financial crisis. The company invests in listed and unlisted equity shares, debt instruments of companies in a wide range of industries, and mutual funds. It also lends money with or without security. The company generates revenue from interest income and dividends.
59GF Score
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