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Returns On Capital At Aspinwall (NSE:ASPINWALL) Paint A Concerning Picture

Simply Wall St · 01/01 00:13

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Amongst other things, we'll want to see two things; firstly, a growing return on capital employed (ROCE) and secondly, an expansion in the company's amount of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. However, after briefly looking over the numbers, we don't think Aspinwall (NSE:ASPINWALL) has the makings of a multi-bagger going forward, but let's have a look at why that may be.

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Return On Capital Employed (ROCE): What Is It?

Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. The formula for this calculation on Aspinwall is:

Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities)

0.0099 = ₹19m ÷ (₹3.1b - ₹1.2b) (Based on the trailing twelve months to September 2025).

So, Aspinwall has an ROCE of 1.0%. In absolute terms, that's a low return and it also under-performs the Food industry average of 14%.

See our latest analysis for Aspinwall

roce
NSEI:ASPINWALL Return on Capital Employed January 1st 2026

Historical performance is a great place to start when researching a stock so above you can see the gauge for Aspinwall's ROCE against it's prior returns. If you're interested in investigating Aspinwall's past further, check out this free graph covering Aspinwall's past earnings, revenue and cash flow.

So How Is Aspinwall's ROCE Trending?

In terms of Aspinwall's historical ROCE movements, the trend isn't fantastic. Around five years ago the returns on capital were 1.9%, but since then they've fallen to 1.0%. On the other hand, the company has been employing more capital without a corresponding improvement in sales in the last year, which could suggest these investments are longer term plays. It's worth keeping an eye on the company's earnings from here on to see if these investments do end up contributing to the bottom line.

The Bottom Line

In summary, Aspinwall is reinvesting funds back into the business for growth but unfortunately it looks like sales haven't increased much just yet. Since the stock has gained an impressive 77% over the last five years, investors must think there's better things to come. But if the trajectory of these underlying trends continue, we think the likelihood of it being a multi-bagger from here isn't high.

If you'd like to know more about Aspinwall, we've spotted 5 warning signs, and 1 of them is a bit concerning.

While Aspinwall isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets.