ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Solar Industries India's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 23.17%.
As of today (2026-07-07), Solar Industries India's WACC % is 16.03%. Solar Industries India's ROC % is 22.05% (calculated using TTM income statement data).
Solar Industries India 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.
Solar Industries India (BOM:532725) 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, Solar Industries India's WACC % is 16.03%. Solar Industries India's ROC % is 22.05% (calculated using TTM income statement data).
Solar Industries India 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 (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.
Solar Industries India (BOM:532725) has a ROC % of 23.17% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Solar Industries India and its competitors.
Is Solar Industries India's ROC % too high?
Solar Industries India's current ROC % is 23.17%. The Chemicals industry median ROC % is 4.47. Solar Industries India's value of 23.17% is 418.3% above this industry median. Overall, Solar Industries India has a GF Score™ of 95/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Solar Industries India's ROC % compare to LIN and SHW?
Solar Industries India's ROC % of 23.17% can be compared against companies in the Chemicals industry. The industry median ROC % is 4.47. Solar Industries India's value of 23.17% is 418.3% 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 Chemicals company?
The median ROC % among Chemicals companies is 4.47, based on 1,575 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. Solar Industries India's current ROC % of 23.17% is 418.3% 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 Solar Industries India and its competitors. For the Chemicals industry, the median ROC % is 4.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Solar Industries India's current ROC % is 23.17%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Solar Industries India stock overvalued right now?
Based on GuruFocus' analysis, Solar Industries India (BOM:532725) is currently considered Fairly Valued. The stock's GF Value™ is ₹16,960.29, compared to a current price of ₹18,271.15 — trading 7.7% above its estimated fair value. The current ROC % is 23.17% and 418.3% above the Chemicals industry median of 4.47. Solar Industries India's overall GF Score™ is 95/100 with 6 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 Solar Industries India (BOM:532725), the current ROC % is 23.17% 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 Solar Industries India (BOM:532725) Overvalued in 2026?
Based on GuruFocus' analysis, Solar Industries India stock appears to be overvalued.
The current stock price of ₹18,271.15 is trading 7.7% above its estimated GF Value™ of ₹16,960.29.
GuruFocus considers Solar Industries India to be Fairly Valued.
Key valuation signals for BOM:532725:
ROC %: 23.17%
GF Value™: ₹16,960.29 vs. price of ₹18,271.15 (7.7% above fair value)
Industry Position: 418.3% above the Chemicals median
No single metric tells the full story. See the BOM:532725 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Solar Industries India Ltd manufactures and sells a variety of explosives and defense products. The company sells bulk and packaged explosives as well as detonation initiating systems to the mining, infrastructure, and construction industries. The firm's defense products include high energy explosives, propellants for delivering missiles and rockets, pyros, bombs, and warheads. Geographically, the group holds its presence in both India and internationally of which Indian region accounts for a majority of revenue.
95GF Score
Get the complete analysis for BOM:532725
ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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