Innodata's stock (NASDAQ: INOD) surged 5.15% in Tuesday's intraday trading session, driven by optimism around the company's improving financial performance and potential for sustained growth.

According to recent analysis, Innodata has demonstrated a remarkable turnaround, transitioning from losses five years ago to now generating a return on capital employed (ROCE) of 27%. This high ROCE, significantly outpacing the industry average, indicates that the company is efficiently utilizing its capital to drive profitability.

Analysts suggest that if Innodata can continue reinvesting its earnings at such high rates of return, it could unlock multi-bagger potential for investors. The company's ability to compound its capital employed and maintain its profitability trajectory could fuel further growth and shareholder value creation in the long run.