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Returns At Tube Investments of India (NSE:TIINDIA) Appear To Be Weighed Down

Simply Wall St · 4d ago

What trends should we look for it we want to identify stocks that can multiply in value over the long term? In a perfect world, we'd like to see a company investing more capital into its business and ideally the returns earned from that capital are also increasing. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. So, when we ran our eye over Tube Investments of India's (NSE:TIINDIA) trend of ROCE, we liked what we saw.

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

For those that aren't sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. Analysts use this formula to calculate it for Tube Investments of India:

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

0.10 = ₹15b ÷ (₹203b - ₹58b) (Based on the trailing twelve months to September 2025).

Thus, Tube Investments of India has an ROCE of 10%. In absolute terms, that's a pretty normal return, and it's somewhat close to the Auto Components industry average of 13%.

View our latest analysis for Tube Investments of India

roce
NSEI:TIINDIA Return on Capital Employed January 6th 2026

Above you can see how the current ROCE for Tube Investments of India compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for Tube Investments of India .

What The Trend Of ROCE Can Tell Us

The trend of ROCE doesn't stand out much, but returns on a whole are decent. Over the past five years, ROCE has remained relatively flat at around 10% and the business has deployed 655% more capital into its operations. Since 10% is a moderate ROCE though, it's good to see a business can continue to reinvest at these decent rates of return. Stable returns in this ballpark can be unexciting, but if they can be maintained over the long run, they often provide nice rewards to shareholders.

On a side note, Tube Investments of India has done well to reduce current liabilities to 29% of total assets over the last five years. Effectively suppliers now fund less of the business, which can lower some elements of risk.

Our Take On Tube Investments of India's ROCE

To sum it up, Tube Investments of India has simply been reinvesting capital steadily, at those decent rates of return. And long term investors would be thrilled with the 204% return they've received over the last five years. So while the positive underlying trends may be accounted for by investors, we still think this stock is worth looking into further.

Tube Investments of India could be trading at an attractive price in other respects, so you might find our free intrinsic value estimation for TIINDIA on our platform quite valuable.

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