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Tech MahindraNSE:TECHM +0.24%82 ROC (Joel Greenblatt) % is 194.28% as of Jun. 2026, which is 71% above its 10-year median of 113.80. GuruFocus rates NSE:TECHM with a GF Score™ of 82/100 and a GF Value™ of ₹1,609.10 (Fairly Valued). The stock has 3 warning signs investors should review. Among 2,816 Software companies, Tech Mahindra ranks better than 82.39% 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. Tech Mahindra's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2026 was 194.28%.
The historical rank and industry rank for Tech Mahindra's ROC (Joel Greenblatt) % or its related term are showing as below:
NSE:TECHM'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: 61.61 Med: 113.8 Max: 176.45
Current: 176.45
During the past 13 years, Tech Mahindra's highest ROC (Joel Greenblatt) % was 176.45%. The lowest was 61.61%. And the median was 113.80%.
NSE:TECHM's ROC (Joel Greenblatt) % is ranked better than 82.39% of 2816
companies
in the Software industry
Industry Median: 20.03
vs NSE:TECHM: 176.45
Tech Mahindra's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 6.80% per year.
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.
Tech Mahindra ROC (Joel Greenblatt) % Related Terms
Tech Mahindra ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Tech Mahindra'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.
NSE:TECHM vs IBM, ACN, FISV: ROC (Joel Greenblatt) % Comparison
For the Information Technology Services subindustry, Tech Mahindra'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.
Tech Mahindra ROC (Joel Greenblatt) % vs Software Industry
For the Software industry and Technology sector, Tech Mahindra's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Tech Mahindra's ROC (Joel Greenblatt) % falls into.
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 (Jun. 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 194.28% mean?
Tech Mahindra (NSE:TECHM) has a ROC (Joel Greenblatt) % of 194.28% as of Jun. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Tech Mahindra and its competitors. This is 71% above median its historical median of 113.80. Over the past decade, Tech Mahindra's ROC (Joel Greenblatt) % has ranged from 61.61 to 176.45. According to the industry distribution chart, Tech Mahindra ranks #496 out of 2816 companies in the Software industry, placing it in the top 17.6%.
Is Tech Mahindra's ROC (Joel Greenblatt) % too high?
Tech Mahindra's current ROC (Joel Greenblatt) % of 194.28% is 71% above median its 10-year median of 113.80. Over the past 10 years, this metric has ranged from a low of 61.61 to a high of 176.45. The Software industry median ROC (Joel Greenblatt) % is 20.03. Tech Mahindra's value of 194.28% is 869.9% above this industry median. Based on the distribution chart, Tech Mahindra ranks #496 out of 2816 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Tech Mahindra has a GF Score™ of 82/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Tech Mahindra's ROC (Joel Greenblatt) % compare to IBM and ACN?
According to the Software industry distribution chart, Tech Mahindra ranks #496 out of 2816 companies for ROC (Joel Greenblatt) %. This places Tech Mahindra in the top 18% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 20.03. Tech Mahindra's value of 194.28% is 869.9% above this benchmark. Historically, Tech Mahindra's own ROC (Joel Greenblatt) % has ranged from 61.61 to 176.45 over the past decade. While the company's 10-year median is 113.80 vs. the industry median of 20.03, Tech Mahindra has consistently been above 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 Software company?
The median ROC (Joel Greenblatt) % among Software companies is 20.03, based on 2,816 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. Tech Mahindra's current ROC (Joel Greenblatt) % of 194.28% is 869.9% above 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 Tech Mahindra and its competitors. For the Software industry, the median ROC (Joel Greenblatt) % is 20.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tech Mahindra's current ROC (Joel Greenblatt) % is 194.28%, which is 71% above median its own 10-year median of 113.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tech Mahindra stock overvalued right now?
Based on GuruFocus' analysis, Tech Mahindra (NSE:TECHM) is currently considered Fairly Valued. The stock's GF Value™ is ₹1,609.10, compared to a current price of ₹1,559.50 — trading 3.1% below its estimated fair value. The current ROC (Joel Greenblatt) % is 194.28%, which is 71% above median its 10-year median of 113.80 and 869.9% above the Software industry median of 20.03. Tech Mahindra's overall GF Score™ is 82/100 with 3 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 Tech Mahindra (NSE:TECHM), the current ROC (Joel Greenblatt) % is 194.28% as of Jun. 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 Tech Mahindra (NSE:TECHM) Overvalued in 2026?
Based on GuruFocus' analysis, Tech Mahindra stock appears to be undervalued.
The current stock price of ₹1,559.50 is trading 3.1% below its estimated GF Value™ of ₹1,609.10.
GuruFocus considers Tech Mahindra to be Fairly Valued.
Key valuation signals for NSE:TECHM:
ROC (Joel Greenblatt) %: 194.28% (71% above median its 10-year median of 113.80)
GF Value™: ₹1,609.10 vs. price of ₹1,559.50 (3.1% below fair value)
Industry Position: 869.9% above the Software median (#496 of 2816)
No single metric tells the full story. See the NSE:TECHM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tech Mahindra Ltd is an IT services and consulting company in India. It offers a variety of technology solutions and services in addition to business process services. Its segments are Information Technology and Business Process Services. The technology solutions include helping companies engage in cloud software, mobile solutions, network services, cybersecurity, and a variety of other options. The business process service is offered across various industries including telecom, financial services, retail, energy, hospitality, high-tech, agriculture, and food beverage. The company generates the majority of its revenue from Communications & Media & Entertainment Industry. Geographically the company generates the majority of its revenue from the Americas.
82GF Score
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