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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 %. ADC India Communications's annualized return on capital (ROC %) for the quarter that ended in Jun. 2026 was 107.16%.
As of today (2026-08-20), ADC India Communications's WACC % is 19.21%. ADC India Communications's ROC % is 71.11% (calculated using TTM income statement data).
ADC India Communications 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.
ADC India Communications (BOM:523411) 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, ADC India Communications's WACC % is 19.21%. ADC India Communications's ROC % is 71.11% (calculated using TTM income statement data).
ADC India Communications 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 (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.
ADC India Communications (BOM:523411) has a ROC % of 107.16% as of Jun. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on ADC India Communications and its competitors.
Is ADC India Communications' ROC % too high?
ADC India Communications' current ROC % is 107.16%. The Hardware industry median ROC % is 4.31. ADC India Communications' value of 107.16% is 2386.3% above this industry median. Overall, ADC India Communications has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does ADC India Communications' ROC % compare to CSCO and MSI?
ADC India Communications' ROC % of 107.16% can be compared against companies in the Hardware industry. The industry median ROC % is 4.31. ADC India Communications' value of 107.16% is 2386.3% 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 Hardware company?
The median ROC % among Hardware companies is 4.31, based on 2,442 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. ADC India Communications's current ROC % of 107.16% is 2386.3% 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 ADC India Communications and its competitors. For the Hardware industry, the median ROC % is 4.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ADC India Communications's current ROC % is 107.16%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ADC India Communications stock overvalued right now?
Based on GuruFocus' analysis, ADC India Communications (BOM:523411) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹1,618.69, compared to a current price of ₹2,420.00 — trading 49.5% above its estimated fair value. The current ROC % is 107.16% and 2386.3% above the Hardware industry median of 4.31. ADC India Communications' overall GF Score™ is 78/100 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 ADC India Communications (BOM:523411), the current ROC % is 107.16% 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 ADC India Communications (BOM:523411) Overvalued in 2026?
Based on GuruFocus' analysis, ADC India Communications stock appears to be overvalued.
The current stock price of ₹2,420.00 is trading 49.5% above its estimated GF Value™ of ₹1,618.69.
GuruFocus considers ADC India Communications to be Significantly Overvalued.
Key valuation signals for BOM:523411:
ROC %: 107.16%
GF Value™: ₹1,618.69 vs. price of ₹2,420.00 (49.5% above fair value)
Industry Position: 2386.3% above the Hardware median
No single metric tells the full story. See the BOM:523411 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ADC India Communications Ltd is engaged in providing connectivity solutions to suit individual enterprise and telecom service provider requirements. It provides copper and fiber physical connectivity in telecommunications and data networking solutions including structured cabling. The company's segments include Telecommunication and IT-Networking. It generates maximum revenue from the IT-Networking segment which engages in manufacturing and trading of IT networking products. Geographically, the company generates a majority of its revenue within India and the rest from other countries.
78GF Score
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ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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