ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Walchandnagar Industries's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 0.71%.
As of today (2026-07-01), Walchandnagar Industries's WACC % is 22.24%. Walchandnagar Industries's ROC % is 0.40% (calculated using TTM income statement data).
Walchandnagar Industries 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, Walchandnagar Industries's WACC % is 22.24%. Walchandnagar Industries's ROC % is 0.40% (calculated using TTM income statement data).
Walchandnagar 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.
* 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.
Walchandnagar Industries (BOM:507410) has a ROC % of 0.71% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Walchandnagar Industries and its competitors.
Is Walchandnagar Industries' ROC % too high?
Walchandnagar Industries' current ROC % is 0.71%. The Construction industry median ROC % is 4.66. Walchandnagar Industries' value of 0.71% is 84.8% below this industry median. Overall, Walchandnagar Industries has a GF Score™ of 51/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Walchandnagar Industries' ROC % compare to PWR and FIX?
Walchandnagar Industries' ROC % of 0.71% can be compared against companies in the Construction industry. The industry median ROC % is 4.66. Walchandnagar Industries' value of 0.71% is 84.8% 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 Construction company?
The median ROC % among Construction companies is 4.66, based on 1,750 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. Walchandnagar Industries's current ROC % of 0.71% is 84.8% 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 Walchandnagar Industries and its competitors. For the Construction industry, the median ROC % is 4.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Walchandnagar Industries's current ROC % is 0.71%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Walchandnagar Industries stock overvalued right now?
Based on GuruFocus' analysis, Walchandnagar Industries (BOM:507410) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹169.57, compared to a current price of ₹272.60 — trading 60.8% above its estimated fair value. The current ROC % is 0.71% and 84.8% below the Construction industry median of 4.66. Walchandnagar Industries' overall GF Score™ is 51/100 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 Walchandnagar Industries (BOM:507410), the current ROC % is 0.71% 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 Walchandnagar Industries (BOM:507410) Overvalued in 2026?
Based on GuruFocus' analysis, Walchandnagar Industries stock appears to be overvalued.
The current stock price of ₹272.60 is trading 60.8% above its estimated GF Value™ of ₹169.57.
GuruFocus considers Walchandnagar Industries to be Significantly Overvalued.
Key valuation signals for BOM:507410:
ROC %: 0.71%
GF Value™: ₹169.57 vs. price of ₹272.60 (60.8% above fair value)
Industry Position: 84.8% below the Construction median
No single metric tells the full story. See the BOM:507410 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Walchandnagar Industries Ltd is an India-based company, that engages in manufacturing engineering products. It provides its services in the fields of Nuclear Power, Aerospace, Missile, Defence, Oil and Gas, Steam generation plants, Independent power projects, Turnkey Cement plants, Mineral Processing, Bulk Material handling, and Turnkey Sugar plants. It operates through the following segments: Heavy Engineering, Foundry and Machine Shop, and Others. The firm generates maximum revenue from the Heavy Engineering segment.
51GF Score
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