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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Punjab Chemicals & Crop Protection's annualized return on capital (ROC %) for the quarter that ended in Jun. 2026 was 15.51%.
As of today (2026-08-05), Punjab Chemicals & Crop Protection's WACC % is 17.21%. Punjab Chemicals & Crop Protection's ROC % is 12.23% (calculated using TTM income statement data).
Punjab Chemicals & Crop Protection earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, Punjab Chemicals & Crop Protection's WACC % is 17.21%. Punjab Chemicals & Crop Protection's ROC % is 12.23% (calculated using TTM income statement data).
Punjab Chemicals & Crop Protection 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.
Punjab Chemicals & Crop Protection ROC % Related Terms
Punjab Chemicals & Crop Protection ROC % Historical 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.
Note:
The Operating Income data used here is four times the quarterly (Jun. 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.
Punjab Chemicals & Crop Protection (BOM:506618) has a ROC % of 15.51% as of Jun. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Punjab Chemicals & Crop Protection and its competitors.
Is Punjab Chemicals & Crop Protection's ROC % too high?
Punjab Chemicals & Crop Protection's current ROC % is 15.51%. The Chemicals industry median ROC % is 4.54. Punjab Chemicals & Crop Protection's value of 15.51% is 241.6% above this industry median. Overall, Punjab Chemicals & Crop Protection has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Punjab Chemicals & Crop Protection's ROC % compare to DOW?
Punjab Chemicals & Crop Protection's ROC % of 15.51% can be compared against companies in the Chemicals industry. The industry median ROC % is 4.54. Punjab Chemicals & Crop Protection's value of 15.51% is 241.6% above 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 4.54, based on 1,582 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. Punjab Chemicals & Crop Protection's current ROC % of 15.51% is 241.6% 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 % 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 Punjab Chemicals & Crop Protection and its competitors. For the Chemicals industry, the median ROC % is 4.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Punjab Chemicals & Crop Protection's current ROC % is 15.51%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Punjab Chemicals & Crop Protection stock overvalued right now?
Based on GuruFocus' analysis, Punjab Chemicals & Crop Protection (BOM:506618) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹1,257.69, compared to a current price of ₹1,114.50 — trading 11.4% below its estimated fair value. The current ROC % is 15.51% and 241.6% above the Chemicals industry median of 4.54. Punjab Chemicals & Crop Protection's overall GF Score™ is 71/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Punjab Chemicals & Crop Protection (BOM:506618), the current ROC % is 15.51% 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 Punjab Chemicals & Crop Protection (BOM:506618) Overvalued in 2026?
Based on GuruFocus' analysis, Punjab Chemicals & Crop Protection stock appears to be undervalued.
The current stock price of ₹1,114.50 is trading 11.4% below its estimated GF Value™ of ₹1,257.69.
GuruFocus considers Punjab Chemicals & Crop Protection to be Modestly Undervalued.
Key valuation signals for BOM:506618:
ROC %: 15.51%
GF Value™: ₹1,257.69 vs. price of ₹1,114.50 (11.4% below fair value)
Industry Position: 241.6% above the Chemicals median
No single metric tells the full story. See the BOM:506618 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Punjab Chemicals & Crop Protection Ltd is involved in the chemical business. It provides technical and bulk agrochemicals, such as herbicides, insecticides, and fungicides; and pharmaceutical products, including APIs, intermediates, anti-oxidants, and fine chemicals, as well as intermediates for APIs; and industrial chemicals comprising phosphorus derivatives, oxalates, and intermediates. Geographically, the group has a business presence in India, Europe, Japan, Israel, the USA, Latin America, and other countries, of which key revenue is derived from India. The firm operates in a single segment namely Performance Chemicals.
71GF Score
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