ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. India Nippon Electricals's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 13.59%.
As of today (2026-07-03), India Nippon Electricals's WACC % is 14.57%. India Nippon Electricals's ROC % is 11.11% (calculated using TTM income statement data).
India Nippon Electricals earns returns that do not match up to its cost of capital. It will destroy value as it grows.
India Nippon Electricals (BOM:532240) 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, India Nippon Electricals's WACC % is 14.57%. India Nippon Electricals's ROC % is 11.11% (calculated using TTM income statement data).
India Nippon Electricals 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.
India Nippon Electricals (BOM:532240) has a ROC % of 13.59% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on India Nippon Electricals and its competitors.
Is India Nippon Electricals' ROC % too high?
India Nippon Electricals' current ROC % is 13.59%. The Vehicles & Parts industry median ROC % is 5.07. India Nippon Electricals' value of 13.59% is 168% above this industry median. Overall, India Nippon Electricals has a GF Score™ of 89/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does India Nippon Electricals' ROC % compare to ORLY and AZO?
India Nippon Electricals' ROC % of 13.59% can be compared against companies in the Vehicles & Parts industry. The industry median ROC % is 5.07. India Nippon Electricals' value of 13.59% is 168% 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 5.07, based on 1,314 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. India Nippon Electricals's current ROC % of 13.59% is 168% 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 India Nippon Electricals and its competitors. For the Vehicles & Parts industry, the median ROC % is 5.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. India Nippon Electricals's current ROC % is 13.59%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is India Nippon Electricals stock overvalued right now?
Based on GuruFocus' analysis, India Nippon Electricals (BOM:532240) is currently considered Fairly Valued. The stock's GF Value™ is ₹961.78, compared to a current price of ₹998.25 — trading 3.8% above its estimated fair value. The current ROC % is 13.59% and 168% above the Vehicles & Parts industry median of 5.07. India Nippon Electricals' overall GF Score™ is 89/100 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 India Nippon Electricals (BOM:532240), the current ROC % is 13.59% 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 India Nippon Electricals (BOM:532240) Overvalued in 2026?
Based on GuruFocus' analysis, India Nippon Electricals stock appears to be overvalued.
The current stock price of ₹998.25 is trading 3.8% above its estimated GF Value™ of ₹961.78.
GuruFocus considers India Nippon Electricals to be Fairly Valued.
Key valuation signals for BOM:532240:
ROC %: 13.59%
GF Value™: ₹961.78 vs. price of ₹998.25 (3.8% above fair value)
Industry Position: 168% above the Vehicles & Parts median
No single metric tells the full story. See the BOM:532240 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
India Nippon Electricals Ltd is an India-based company that engages in the business of manufacturing electronic ignition systems for two-wheelers, three-wheelers, and portable engines. The company offers AC generator products, such as flywheel magneto, stator, rotor products, regulator and rectifier units, ignition coils, exhaust gas recirculation controllers, engine controller units, auto choke-generation purpose engines, dual output ignition products, non-contact and contact type throttle position sensors, and PM alternators. Geographically, it derives a majority of its revenue from India.
89GF 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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