ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Excel Industries's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 2.30%.
As of today (2026-07-01), Excel Industries's WACC % is 15.89%. Excel Industries's ROC % is 3.25% (calculated using TTM income statement data).
Excel Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Excel Industries (BOM:500650) 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, Excel Industries's WACC % is 15.89%. Excel Industries's ROC % is 3.25% (calculated using TTM income statement data).
Excel Industries 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.
Excel Industries ROC % Related Terms
Excel Industries ROC % Historical Data
* Premium members only.
The historical data trend for Excel Industries'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.
Excel Industries (BOM:500650) has a ROC % of 2.30% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Excel Industries and its competitors.
Is Excel Industries' ROC % too high?
Excel Industries' current ROC % is 2.30%. The Chemicals industry median ROC % is 4.46. Excel Industries' value of 2.30% is 48.4% below this industry median. Overall, Excel Industries has a GF Score™ of 69/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Excel Industries' ROC % compare to LIN and SHW?
Excel Industries' ROC % of 2.30% can be compared against companies in the Chemicals industry. The industry median ROC % is 4.46. Excel Industries' value of 2.30% is 48.4% below this benchmark. 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 Chemicals company?
The median ROC % among Chemicals companies is 4.46, based on 1,580 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Excel Industries's current ROC % of 2.30% is 48.4% 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 % 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 Excel Industries and its competitors. For the Chemicals industry, the median ROC % is 4.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Excel Industries's current ROC % is 2.30%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Excel Industries stock overvalued right now?
Based on GuruFocus' analysis, Excel Industries (BOM:500650) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹1,165.32, compared to a current price of ₹921.65 — trading 20.9% below its estimated fair value. The current ROC % is 2.30% and 48.4% below the Chemicals industry median of 4.46. Excel Industries' overall GF Score™ is 69/100 with 5 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 Excel Industries (BOM:500650), the current ROC % is 2.30% 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 Excel Industries (BOM:500650) Overvalued in 2026?
Based on GuruFocus' analysis, Excel Industries stock appears to be undervalued.
The current stock price of ₹921.65 is trading 20.9% below its estimated GF Value™ of ₹1,165.32.
GuruFocus considers Excel Industries to be Modestly Undervalued.
Key valuation signals for BOM:500650:
ROC %: 2.30%
GF Value™: ₹1,165.32 vs. price of ₹921.65 (20.9% below fair value)
Industry Position: 48.4% below the Chemicals median
No single metric tells the full story. See the BOM:500650 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Excel Industries Ltd is a chemical manufacturer based in India. The company is organized into two business segments namely; Chemicals segment which comprises of manufacture of speciality chemicals, intermediates and actives catering to various end user segments like Agrochemicals, Water Treatment, Soaps & Detergents, Lube Oil Additives, Mining Chemicals, Polymer Additives and Pharmaceuticals; and Environment and Biotech segment which comprises of Organic waste management composting, Municipal solid waste management, Plastic waste management and Construction and demolition waste management. The majority of its revenues come from Chemicals segment. It generates maximum revenue from within India.
69GF Score
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