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Indian Railway FinanceNSE:IRFC -1.04%71 ROC (Joel Greenblatt) % is 2.29% as of Mar. 2026, which is 98% below its 10-year median of 122.67. GuruFocus rates NSE:IRFC with a GF Score™ of 71/100 and a GF Value™ of ₹128.03 (Possible Value Trap). The stock has 9 warning signs investors should review. Among 415 Credit Services companies, Indian Railway Finance ranks worse than 68.43% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Indian Railway Finance's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 2.29%.
The historical rank and industry rank for Indian Railway Finance's ROC (Joel Greenblatt) % or its related term are showing as below:
NSE:IRFC'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 3.13 Med: 122.67 Max: 178.71
Current: 3.13
During the past 9 years, Indian Railway Finance's highest ROC (Joel Greenblatt) % was 178.71%. The lowest was 3.13%. And the median was 122.67%.
NSE:IRFC's ROC (Joel Greenblatt) % is ranked worse than 68.43% of 415
companies
in the Credit Services industry
Industry Median: 38.99
vs NSE:IRFC: 3.13
Indian Railway Finance's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was -44.60% per year.
Indian Railway Finance (NSE:IRFC) ROC (Joel Greenblatt) % Explanation
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Indian Railway Finance ROC (Joel Greenblatt) % Related Terms
Indian Railway Finance ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Indian Railway Finance's ROC (Joel Greenblatt) % 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.
Indian Railway Finance ROC (Joel Greenblatt) % Chart
NSE:IRFC vs V, MA, AXP: ROC (Joel Greenblatt) % Comparison
For the Credit Services subindustry, Indian Railway Finance's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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.
Indian Railway Finance ROC (Joel Greenblatt) % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Indian Railway Finance's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Indian Railway Finance's ROC (Joel Greenblatt) % falls into.
Indian Railway Finance ROC (Joel Greenblatt) % Calculation
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT 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.
What does a ROC (Joel Greenblatt) % of 2.29% mean?
Indian Railway Finance (NSE:IRFC) has a ROC (Joel Greenblatt) % of 2.29% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Indian Railway Finance and its competitors. This is 98% below median its historical median of 122.67. Over the past decade, Indian Railway Finance's ROC (Joel Greenblatt) % has ranged from 3.13 to 178.71. According to the industry distribution chart, Indian Railway Finance ranks #284 out of 415 companies in the Credit Services industry, placing it in the top 68.4%.
Is Indian Railway Finance's ROC (Joel Greenblatt) % too high?
Indian Railway Finance's current ROC (Joel Greenblatt) % of 2.29% is 98% below median its 10-year median of 122.67. Over the past 10 years, this metric has ranged from a low of 3.13 to a high of 178.71. The Credit Services industry median ROC (Joel Greenblatt) % is 38.99. Indian Railway Finance's value of 2.29% is 94.1% below this industry median. Based on the distribution chart, Indian Railway Finance ranks #284 out of 415 companies in the Credit Services industry, which is below the industry midpoint. Overall, Indian Railway Finance has a GF Score™ of 71/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Indian Railway Finance's ROC (Joel Greenblatt) % compare to V and MA?
According to the Credit Services industry distribution chart, Indian Railway Finance ranks #284 out of 415 companies for ROC (Joel Greenblatt) %. This places Indian Railway Finance in the lower half of its industry. The industry median ROC (Joel Greenblatt) % is 38.99. Indian Railway Finance's value of 2.29% is 94.1% below this benchmark. Historically, Indian Railway Finance's own ROC (Joel Greenblatt) % has ranged from 3.13 to 178.71 over the past decade. While the company's 10-year median is 122.67 vs. the industry median of 38.99, Indian Railway Finance has consistently been below 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 ROC (Joel Greenblatt) % for a Credit Services company?
The median ROC (Joel Greenblatt) % among Credit Services companies is 38.99, based on 415 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Indian Railway Finance's current ROC (Joel Greenblatt) % of 2.29% is 94.1% below 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Indian Railway Finance and its competitors. For the Credit Services industry, the median ROC (Joel Greenblatt) % is 38.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Indian Railway Finance's current ROC (Joel Greenblatt) % is 2.29%, which is 98% below median its own 10-year median of 122.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Indian Railway Finance stock overvalued right now?
Based on GuruFocus' analysis, Indian Railway Finance (NSE:IRFC) is currently considered Possible Value Trap. The stock's GF Value™ is ₹128.03, compared to a current price of ₹87.39 — trading 31.7% below its estimated fair value. The current ROC (Joel Greenblatt) % is 2.29%, which is 98% below median its 10-year median of 122.67 and 94.1% below the Credit Services industry median of 38.99. Indian Railway Finance's overall GF Score™ is 71/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Indian Railway Finance (NSE:IRFC), the current ROC (Joel Greenblatt) % is 2.29% 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 Indian Railway Finance (NSE:IRFC) Overvalued in 2026?
Based on GuruFocus' analysis, Indian Railway Finance stock appears to be undervalued.
The current stock price of ₹87.39 is trading 31.7% below its estimated GF Value™ of ₹128.03.
GuruFocus considers Indian Railway Finance to be Possible Value Trap.
Key valuation signals for NSE:IRFC:
ROC (Joel Greenblatt) %: 2.29% (98% below median its 10-year median of 122.67)
GF Value™: ₹128.03 vs. price of ₹87.39 (31.7% below fair value)
Industry Position: 94.1% below the Credit Services median (#284 of 415)
No single metric tells the full story. See the NSE:IRFC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Indian Railway Finance Corp Ltd is engaged in the business of borrowing funds from the financial markets to finance the acquisition/creation of assets, which are then leased out to the Indian Railways or any entity under the Ministry of Railways. Its only operating segment is Leasing and Finance. The company generates maximum revenue from Lease Income.
71GF Score
Get the complete analysis for NSE:IRFC
ROC (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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