ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Omax Autos's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 15.54%.
As of today (2026-07-13), Omax Autos's WACC % is 7.01%. Omax Autos's ROC % is 6.32% (calculated using TTM income statement data).
Omax Autos earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Omax Autos (BOM:520021) 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, Omax Autos's WACC % is 7.01%. Omax Autos's ROC % is 6.32% (calculated using TTM income statement data).
Omax Autos 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.
Omax Autos ROC % Related Terms
Omax Autos ROC % Historical Data
* Premium members only.
The historical data trend for Omax Autos'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.
Omax Autos (BOM:520021) has a ROC % of 15.54% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Omax Autos and its competitors.
Is Omax Autos' ROC % too high?
Omax Autos' current ROC % is 15.54%. The Vehicles & Parts industry median ROC % is 5.05. Omax Autos' value of 15.54% is 207.7% above this industry median. Overall, Omax Autos has a GF Score™ of 59/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Omax Autos' ROC % compare to ORLY and AZO?
Omax Autos' ROC % of 15.54% can be compared against companies in the Vehicles & Parts industry. The industry median ROC % is 5.05. Omax Autos' value of 15.54% is 207.7% 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 Vehicles & Parts company?
The median ROC % among Vehicles & Parts companies is 5.05, based on 1,310 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. Omax Autos's current ROC % of 15.54% is 207.7% 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 Omax Autos and its competitors. For the Vehicles & Parts industry, the median ROC % is 5.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Omax Autos's current ROC % is 15.54%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Omax Autos stock overvalued right now?
Based on GuruFocus' analysis, Omax Autos (BOM:520021) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹139.48, compared to a current price of ₹242.85 — trading 74.1% above its estimated fair value. The current ROC % is 15.54% and 207.7% above the Vehicles & Parts industry median of 5.05. Omax Autos' overall GF Score™ is 59/100 with 4 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 Omax Autos (BOM:520021), the current ROC % is 15.54% 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 Omax Autos (BOM:520021) Overvalued in 2026?
Based on GuruFocus' analysis, Omax Autos stock appears to be overvalued.
The current stock price of ₹242.85 is trading 74.1% above its estimated GF Value™ of ₹139.48.
GuruFocus considers Omax Autos to be Significantly Overvalued.
Key valuation signals for BOM:520021:
ROC %: 15.54%
GF Value™: ₹139.48 vs. price of ₹242.85 (74.1% above fair value)
Industry Position: 207.7% above the Vehicles & Parts median
No single metric tells the full story. See the BOM:520021 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Omax Autos Ltd is engaged in manufacturing automotive components in India. The company specialises in sheet metal components, tubular components, and machine components. It manages its business in automotive, railways and heavy fabrication, and energy areas. It offers frame assembly, step pavilion, and Saree Guard, among others for two-wheelers. It offers connecting rods, coupling connections, and Silent Block, among others for three-wheelers. The company's off-highway product range includes a front axle, clutch pedal, and brake pedal. Its railways and heavy fabrication products include coach building and retention tanks.
59GF Score
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