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 %. Saffron Industries's annualized return on capital (ROC %) for the quarter that ended in Jun. 2026 was 3.57%.
As of today (2026-08-05), Saffron Industries's WACC % is 13.31%. Saffron Industries's ROC % is 11.35% (calculated using TTM income statement data).
Saffron Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, Saffron Industries's WACC % is 13.31%. Saffron Industries's ROC % is 11.35% (calculated using TTM income statement data).
Saffron 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.
Saffron Industries ROC % Related Terms
Saffron Industries ROC % Historical Data
* Premium members only.
The historical data trend for Saffron Industries'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 (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.
Saffron Industries (BOM:531436) has a ROC % of 3.57% as of Jun. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Saffron Industries and its competitors.
Is Saffron Industries' ROC % too high?
Saffron Industries' current ROC % is 3.57%. The Forest Products industry median ROC % is 1.65. Saffron Industries' value of 3.57% is 116.4% above this industry median. Overall, Saffron Industries has a GF Score™ of 41/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Saffron Industries' ROC % compare to competitors?
Saffron Industries' ROC % of 3.57% can be compared against companies in the Forest Products industry. The industry median ROC % is 1.65. Saffron Industries' value of 3.57% is 116.4% 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 Forest Products company?
The median ROC % among Forest Products companies is 1.65, based on 276 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. Saffron Industries's current ROC % of 3.57% is 116.4% 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 Saffron Industries and its competitors. For the Forest Products industry, the median ROC % is 1.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Saffron Industries's current ROC % is 3.57%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Saffron Industries stock overvalued right now?
Based on GuruFocus' analysis, Saffron Industries (BOM:531436) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹3.89, compared to a current price of ₹26.09 — trading 570.7% above its estimated fair value. The current ROC % is 3.57% and 116.4% above the Forest Products industry median of 1.65. Saffron Industries' overall GF Score™ is 41/100 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 Saffron Industries (BOM:531436), the current ROC % is 3.57% 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 Saffron Industries (BOM:531436) Overvalued in 2026?
Based on GuruFocus' analysis, Saffron Industries stock appears to be overvalued.
The current stock price of ₹26.09 is trading 570.7% above its estimated GF Value™ of ₹3.89.
GuruFocus considers Saffron Industries to be Significantly Overvalued.
Key valuation signals for BOM:531436:
ROC %: 3.57%
GF Value™: ₹3.89 vs. price of ₹26.09 (570.7% above fair value)
Industry Position: 116.4% above the Forest Products median
No single metric tells the full story. See the BOM:531436 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Saffron Industries Ltd is engaged in the business of paper manufacturing, construction, and real estate development. The company's segments include Paper Manufacturing and Real Estate Development. The company manufactures newsprint in rolls or sheets, uncoated paper of a kind used for writing, printing, or other graphic purposes in rolls or sheets. Its product range includes Kraft Papers, Color Boards, Chromo Papers, Bleached Kraft Papers, White Top Kraft Liners, Maplitho Papers, Sack Kraft Paper, Cellulose Paper, and others. The company generates maximum revenue from sales of plots.
41GF Score
Get the complete analysis for BOM:531436
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:531436 has been successfully added to your 
