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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 %. Atul Auto's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 12.53%.
As of today (2026-07-30), Atul Auto's WACC % is 12.83%. Atul Auto's ROC % is 8.32% (calculated using TTM income statement data).
Atul Auto earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Atul Auto (BOM:531795) 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, Atul Auto's WACC % is 12.83%. Atul Auto's ROC % is 8.32% (calculated using TTM income statement data).
Atul Auto 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.
Atul Auto ROC % Related Terms
Atul Auto ROC % Historical Data
* Premium members only.
The historical data trend for Atul Auto'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.
Atul Auto (BOM:531795) has a ROC % of 12.53% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Atul Auto and its competitors.
Is Atul Auto's ROC % too high?
Atul Auto's current ROC % is 12.53%. The Vehicles & Parts industry median ROC % is 5.09. Atul Auto's value of 12.53% is 146.2% above this industry median. Overall, Atul Auto has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Atul Auto's ROC % compare to TSLA and GM?
Atul Auto's ROC % of 12.53% can be compared against companies in the Vehicles & Parts industry. The industry median ROC % is 5.09. Atul Auto's value of 12.53% is 146.2% 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 5.09, based on 1,311 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. Atul Auto's current ROC % of 12.53% is 146.2% 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 Atul Auto and its competitors. For the Vehicles & Parts industry, the median ROC % is 5.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Atul Auto's current ROC % is 12.53%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Atul Auto stock overvalued right now?
Based on GuruFocus' analysis, Atul Auto (BOM:531795) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹637.35, compared to a current price of ₹494.75 — trading 22.4% below its estimated fair value. The current ROC % is 12.53% and 146.2% above the Vehicles & Parts industry median of 5.09. Atul Auto's overall GF Score™ is 76/100 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 Atul Auto (BOM:531795), the current ROC % is 12.53% 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 Atul Auto (BOM:531795) Overvalued in 2026?
Based on GuruFocus' analysis, Atul Auto stock appears to be undervalued.
The current stock price of ₹494.75 is trading 22.4% below its estimated GF Value™ of ₹637.35.
GuruFocus considers Atul Auto to be Modestly Undervalued.
Key valuation signals for BOM:531795:
ROC %: 12.53%
GF Value™: ₹637.35 vs. price of ₹494.75 (22.4% below fair value)
Industry Position: 146.2% above the Vehicles & Parts median
No single metric tells the full story. See the BOM:531795 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Atul Auto Ltd is an Indian-based automobile manufacturing company. The company manufactures and sells three-wheeled commercial automobiles in the domestic and overseas markets. The product portfolio of the company includes Atul Shakti, Atul Gem, Atul Smart, Atul Gemini, Atul RIK, and Atul Elite. The company has a presence in India as well as exports its products internationally. The majority of the revenue is earned from the domestic market. It operates in the the segments namely Automotive Business and Non-Banking Financial Business.
76GF Score
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