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Royal Arc ElectrodesNSE:ROYALARC +0.56%19 Net-Net Working Capital is ₹27.40 as of Mar. 2026. GuruFocus rates NSE:ROYALARC with a GF Score™ of 19/100. The stock has 8 warning signs investors should review. Among 1,350 Industrial Products companies, Royal Arc Electrodes ranks better than 58.81% on this metric.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
Royal Arc Electrodes's Net-Net Working Capital for the quarter that ended in Mar. 2026 was ₹27.40.
The industry rank for Royal Arc Electrodes's Net-Net Working Capital or its related term are showing as below:
NSE:ROYALARC's Price-to-Net-Net-Working-Capital is ranked better than 58.81% of 1350
companies
in the Industrial Products industry
Industry Median: 8.21
vs NSE:ROYALARC: 6.50
Royal Arc Electrodes (NSE:ROYALARC) Net-Net Working Capital Explanation
One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.
Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.
Royal Arc Electrodes Net-Net Working Capital Related Terms
Royal Arc Electrodes Net-Net Working Capital Historical Data
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The historical data trend for Royal Arc Electrodes's Net-Net Working Capital 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.
Royal Arc Electrodes Net-Net Working Capital Chart
NSE:ROYALARC vs VRT, BE: Net-Net Working Capital Comparison
For the Electrical Equipment & Parts subindustry, Royal Arc Electrodes's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital 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.
Royal Arc Electrodes Price-to-Net-Net-Working-Capital vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Royal Arc Electrodes's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where Royal Arc Electrodes's Price-to-Net-Net-Working-Capital 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.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.
In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.
This is a conservative way of estimating the company's value.
What does a Net-Net Working Capital of ₹27.40 mean?
Royal Arc Electrodes (NSE:ROYALARC) has a Net-Net Working Capital of ₹27.40 as of Mar. 2026. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Royal Arc Electrodes According to the industry distribution chart, Royal Arc Electrodes ranks #556 out of 1350 companies in the Industrial Products industry, placing it in the top 41.2%.
Is Royal Arc Electrodes' Net-Net Working Capital too high?
Royal Arc Electrodes' current Net-Net Working Capital is ₹27.40. Based on the distribution chart, Royal Arc Electrodes ranks #556 out of 1350 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Royal Arc Electrodes has a GF Score™ of 19/100, reflecting its overall financial health beyond just this single metric.
How does Royal Arc Electrodes' Net-Net Working Capital compare to VRT and BE?
According to the Industrial Products industry distribution chart, Royal Arc Electrodes ranks #556 out of 1350 companies for Net-Net Working Capital. This puts Royal Arc Electrodes in the upper half of its industry. The industry median Net-Net Working Capital is 8.21. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for an Industrial Products company?
The median Net-Net Working Capital among Industrial Products companies is 8.21, based on 1,350 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Royal Arc Electrodes For the Industrial Products industry, the median Net-Net Working Capital is 8.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Royal Arc Electrodes's current Net-Net Working Capital is ₹27.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Royal Arc Electrodes stock overvalued right now?
Royal Arc Electrodes (NSE:ROYALARC) has a current Net-Net Working Capital of ₹27.40. The current Net-Net Working Capital is ₹27.40. Royal Arc Electrodes' overall GF Score™ is 19/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For Royal Arc Electrodes (NSE:ROYALARC), the current Net-Net Working Capital is ₹27.40 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.
Royal Arc Electrodes Ltd is engaged in the business of manufacturing welding consumables such as welding electrodes, flux cored wire, MIG/TIG wires, which finds its application in the welding of tanks, boilers, heavy structures, beams, pipes, cylinders, pressure vessels, etc. which are used in industries like railways, roadways, airport infrastructure, refineries, shipyards, mines, sugar industries, telecom industries, thermal power stations, PEB sectors, etc. Further, the Company is also engaged in the business of trading ancillary/incidental products like wheels, electro slag, welding flux cored wire, electro slag strip cladding, saw flux, and TIG /MIG wires. It manufactures its products from copper coated wire, MS Strips, MS wire, SS strip, SS wire, nickel wire, ferro alloy powder, etc.
19GF Score
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