Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Garnet International's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 1.24%.
As of today (2026-08-12), Garnet International's WACC % is 14.22%. Garnet International's ROC % is 8.83% (calculated using TTM income statement data).
Garnet International earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Garnet International (BOM:512493) 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, Garnet International's WACC % is 14.22%. Garnet International's ROC % is 8.83% (calculated using TTM income statement data).
Garnet International 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.
Garnet International (BOM:512493) has a ROC % of 1.24% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Garnet International and its competitors.
Is Garnet International's ROC % too high?
Garnet International's current ROC % is 1.24%. The Capital Markets industry median ROC % is 1.35. Garnet International's value of 1.24% is 8.1% below this industry median. Overall, Garnet International has a GF Score™ of 44/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Garnet International's ROC % compare to MS and GS?
Garnet International's ROC % of 1.24% can be compared against companies in the Capital Markets industry. The industry median ROC % is 1.35. Garnet International's value of 1.24% is 8.1% 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 Capital Markets company?
The median ROC % among Capital Markets companies is 1.35, based on 695 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. Garnet International's current ROC % of 1.24% is 8.1% 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 Garnet International and its competitors. For the Capital Markets industry, the median ROC % is 1.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Garnet International's current ROC % is 1.24%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Garnet International stock overvalued right now?
Based on GuruFocus' analysis, Garnet International (BOM:512493) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹9.21, compared to a current price of ₹60.71 — trading 559.2% above its estimated fair value. The current ROC % is 1.24% and 8.1% below the Capital Markets industry median of 1.35. Garnet International's overall GF Score™ is 44/100 with 7 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 Garnet International (BOM:512493), the current ROC % is 1.24% 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 Garnet International (BOM:512493) Overvalued in 2026?
Based on GuruFocus' analysis, Garnet International stock appears to be overvalued.
The current stock price of ₹60.71 is trading 559.2% above its estimated GF Value™ of ₹9.21.
GuruFocus considers Garnet International to be Significantly Overvalued.
Key valuation signals for BOM:512493:
ROC %: 1.24%
GF Value™: ₹9.21 vs. price of ₹60.71 (559.2% above fair value)
Industry Position: 8.1% below the Capital Markets median
No single metric tells the full story. See the BOM:512493 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Garnet International Ltd is a non-deposit accepting NBFC engaged in financial services. Its activities mainly comprise investing in listed and unlisted equity shares, debt instruments, and mutual funds etc. of companies in a wide range of industries. Its primary business segments are Trading, which generates maximum revenue, and Shares and Securities. Geographically, the group operates only in India.
44GF Score
Get the complete analysis for BOM:512493
ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
BOM:512493 has been successfully added to your 
