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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 %. Ishita Drugs And Industries's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 3.79%.
As of today (2026-07-21), Ishita Drugs And Industries's WACC % is 12.97%. Ishita Drugs And Industries's ROC % is 9.12% (calculated using TTM income statement data).
Ishita Drugs And Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Ishita Drugs And Industries (BOM:524400) 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, Ishita Drugs And Industries's WACC % is 12.97%. Ishita Drugs And Industries's ROC % is 9.12% (calculated using TTM income statement data).
Ishita Drugs And 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.
Ishita Drugs And Industries (BOM:524400) has a ROC % of 3.79% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Ishita Drugs And Industries and its competitors.
Is Ishita Drugs And Industries' ROC % too high?
Ishita Drugs And Industries' current ROC % is 3.79%. The Drug Manufacturers industry median ROC % is 4.46. Ishita Drugs And Industries' value of 3.79% is 15% below this industry median. Overall, Ishita Drugs And Industries has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Ishita Drugs And Industries' ROC % compare to ZTS and UTHR?
Ishita Drugs And Industries' ROC % of 3.79% can be compared against companies in the Drug Manufacturers industry. The industry median ROC % is 4.46. Ishita Drugs And Industries' value of 3.79% is 15% 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 Drug Manufacturers company?
The median ROC % among Drug Manufacturers companies is 4.46, based on 988 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. Ishita Drugs And Industries's current ROC % of 3.79% is 15% 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 Ishita Drugs And Industries and its competitors. For the Drug Manufacturers industry, the median ROC % is 4.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ishita Drugs And Industries's current ROC % is 3.79%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ishita Drugs And Industries stock overvalued right now?
Based on GuruFocus' analysis, Ishita Drugs And Industries (BOM:524400) is currently considered Fairly Valued. The stock's GF Value™ is ₹78.36, compared to a current price of ₹71.79 — trading 8.4% below its estimated fair value. The current ROC % is 3.79% and 15% below the Drug Manufacturers industry median of 4.46. Ishita Drugs And Industries' overall GF Score™ is 74/100 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 Ishita Drugs And Industries (BOM:524400), the current ROC % is 3.79% 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 Ishita Drugs And Industries (BOM:524400) Overvalued in 2026?
Based on GuruFocus' analysis, Ishita Drugs And Industries stock appears to be undervalued.
The current stock price of ₹71.79 is trading 8.4% below its estimated GF Value™ of ₹78.36.
GuruFocus considers Ishita Drugs And Industries to be Fairly Valued.
Key valuation signals for BOM:524400:
ROC %: 3.79%
GF Value™: ₹78.36 vs. price of ₹71.79 (8.4% below fair value)
Industry Position: 15% below the Drug Manufacturers median
No single metric tells the full story. See the BOM:524400 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ishita Drugs And Industries Ltd is engaged in the business of manufacturing various APIs and drug intermediates. The company supplies its products to various pharmaceutical companies and is also being exported to various countries across the world. The company has three manufacturing facilities located in the state of Gujarat, two for APIs and drug intermediates at Ahmedabad and Surendranagar, and one for finished pharmaceutical formulations at Mehsana.
74GF Score
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