ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Gandhi Special Tubes's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 15.98%.
As of today (2026-07-07), Gandhi Special Tubes's WACC % is 11.53%. Gandhi Special Tubes's ROC % is 20.20% (calculated using TTM income statement data).
Gandhi Special Tubes generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
Gandhi Special Tubes (BOM:513108) 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, Gandhi Special Tubes's WACC % is 11.53%. Gandhi Special Tubes's ROC % is 20.20% (calculated using TTM income statement data).
Gandhi Special Tubes generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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.
Gandhi Special Tubes (BOM:513108) has a ROC % of 15.98% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Gandhi Special Tubes and its competitors.
Is Gandhi Special Tubes' ROC % too high?
Gandhi Special Tubes' current ROC % is 15.98%. The Industrial Products industry median ROC % is 5.20. Gandhi Special Tubes' value of 15.98% is 207.6% above this industry median. Overall, Gandhi Special Tubes has a GF Score™ of 89/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Gandhi Special Tubes' ROC % compare to CRS and ATI?
Gandhi Special Tubes' ROC % of 15.98% can be compared against companies in the Industrial Products industry. The industry median ROC % is 5.20. Gandhi Special Tubes' value of 15.98% is 207.6% 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 an Industrial Products company?
The median ROC % among Industrial Products companies is 5.20, based on 3,028 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. Gandhi Special Tubes's current ROC % of 15.98% is 207.6% 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 Gandhi Special Tubes and its competitors. For the Industrial Products industry, the median ROC % is 5.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gandhi Special Tubes's current ROC % is 15.98%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gandhi Special Tubes stock overvalued right now?
Based on GuruFocus' analysis, Gandhi Special Tubes (BOM:513108) is currently considered Fairly Valued. The stock's GF Value™ is ₹868.87, compared to a current price of ₹875.75 — trading 0.8% above its estimated fair value. The current ROC % is 15.98% and 207.6% above the Industrial Products industry median of 5.20. Gandhi Special Tubes' overall GF Score™ is 89/100 with 1 warning sign 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 Gandhi Special Tubes (BOM:513108), the current ROC % is 15.98% 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 Gandhi Special Tubes (BOM:513108) Overvalued in 2026?
Based on GuruFocus' analysis, Gandhi Special Tubes stock appears to be overvalued.
The current stock price of ₹875.75 is trading 0.8% above its estimated GF Value™ of ₹868.87.
GuruFocus considers Gandhi Special Tubes to be Fairly Valued.
Key valuation signals for BOM:513108:
ROC %: 15.98%
GF Value™: ₹868.87 vs. price of ₹875.75 (0.8% above fair value)
Industry Position: 207.6% above the Industrial Products median
No single metric tells the full story. See the BOM:513108 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gandhi Special Tubes Ltd manufactures and markets welded and seamless steel tubes of different sizes and specifications, and cold-formed coupling nuts. The company is involved in manufacturing automobile components, cold-formed tube nuts for fuel injection tube assemblies, hydraulic and other tube assemblies. Its products include Welded Tubes, Seamless Tubes, Wind Power, and Cold Formed Nuts. Products of the firm are supplied to the original equipment manufacturers of the automotive sector, farm equipment manufacturers, construction equipment manufacturers, refrigerator manufacturers, and other engineering industries. It also operates in the power sector through windmills installed in Maharashtra and Gujarat.
89GF Score
Get the complete analysis for BOM:513108
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:513108 has been successfully added to your 
