ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Lyka Labs's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was -21.17%.
As of today (2026-07-03), Lyka Labs's WACC % is 16.30%. Lyka Labs's ROC % is -7.23% (calculated using TTM income statement data).
Lyka Labs earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Lyka Labs (BOM:500259) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Lyka Labs's WACC % is 16.30%. Lyka Labs's ROC % is -7.23% (calculated using TTM income statement data).
Lyka Labs earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Lyka Labs ROC % Related Terms
Lyka Labs ROC % Historical Data
* Premium members only.
The historical data trend for Lyka Labs's ROC % 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.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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.
Lyka Labs (BOM:500259) has a ROC % of -21.17% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Lyka Labs and its competitors.
Is Lyka Labs' ROC % too high?
Lyka Labs' current ROC % is -21.17%. Overall, Lyka Labs has a GF Score™ of 49/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Lyka Labs' ROC % compare to VRTX and REGN?
Lyka Labs' ROC % of -21.17% can be compared against companies in the Biotechnology industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a Biotechnology company?
A good ROC % depends on the Biotechnology industry context. However, ROC % 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 ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Lyka Labs and its competitors. Lyka Labs's current ROC % is -21.17%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lyka Labs stock overvalued right now?
Based on GuruFocus' analysis, Lyka Labs (BOM:500259) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹127.10, compared to a current price of ₹72.00 — trading 43.4% below its estimated fair value. The current ROC % is -21.17%. Lyka Labs' overall GF Score™ is 49/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Lyka Labs (BOM:500259), the current ROC % is -21.17% 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 Lyka Labs (BOM:500259) Overvalued in 2026?
Based on GuruFocus' analysis, Lyka Labs stock appears to be undervalued.
The current stock price of ₹72.00 is trading 43.4% below its estimated GF Value™ of ₹127.10.
GuruFocus considers Lyka Labs to be Significantly Undervalued.
Key valuation signals for BOM:500259:
ROC %: -21.17%
GF Value™: ₹127.10 vs. price of ₹72.00 (43.4% below fair value)
No single metric tells the full story. See the BOM:500259 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lyka Labs Ltd is an Indian biotechnology company. It mainly engages in the development of specialized formulations. The Company is engaged in only one segment which is pharmaceuticals. The Company has a presence in Domestic as well as International markets. The commercialized formulations of the company consist of hair care, anti-aging, acne management, skin lightening, face washes, sunscreens, facial scrubs, and others. It has developed a varied drug delivery system for topical steroids, painkillers, anti-fungal, and other emollients as well as liquid injectables, lyophilized injectables in the anti-bacterial, antifungal segment. The company also manufactures proton pump inhibitors, antibiotics, antifungals, steroids, etc. The majority of the company's revenue comes from India.
49GF Score
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