ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Titagarh Rail Systems's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 7.34%.
As of today (2026-07-03), Titagarh Rail Systems's WACC % is 19.34%. Titagarh Rail Systems's ROC % is 6.54% (calculated using TTM income statement data).
Titagarh Rail Systems earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Titagarh Rail Systems (BOM:532966) 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, Titagarh Rail Systems's WACC % is 19.34%. Titagarh Rail Systems's ROC % is 6.54% (calculated using TTM income statement data).
Titagarh Rail Systems 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.
Titagarh Rail Systems (BOM:532966) has a ROC % of 7.34% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Titagarh Rail Systems and its competitors.
Is Titagarh Rail Systems' ROC % too high?
Titagarh Rail Systems' current ROC % is 7.34%. The Transportation industry median ROC % is 4.69. Titagarh Rail Systems' value of 7.34% is 56.5% above this industry median. Overall, Titagarh Rail Systems has a GF Score™ of 84/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Titagarh Rail Systems' ROC % compare to UNP and CSX?
Titagarh Rail Systems' ROC % of 7.34% can be compared against companies in the Transportation industry. The industry median ROC % is 4.69. Titagarh Rail Systems' value of 7.34% is 56.5% 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 Transportation company?
The median ROC % among Transportation companies is 4.69, based on 985 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. Titagarh Rail Systems's current ROC % of 7.34% is 56.5% 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 Titagarh Rail Systems and its competitors. For the Transportation industry, the median ROC % is 4.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Titagarh Rail Systems's current ROC % is 7.34%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Titagarh Rail Systems stock overvalued right now?
Based on GuruFocus' analysis, Titagarh Rail Systems (BOM:532966) is currently considered Fairly Valued. The stock's GF Value™ is ₹856.74, compared to a current price of ₹883.25 — trading 3.1% above its estimated fair value. The current ROC % is 7.34% and 56.5% above the Transportation industry median of 4.69. Titagarh Rail Systems' overall GF Score™ is 84/100 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 Titagarh Rail Systems (BOM:532966), the current ROC % is 7.34% 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 Titagarh Rail Systems (BOM:532966) Overvalued in 2026?
Based on GuruFocus' analysis, Titagarh Rail Systems stock appears to be overvalued.
The current stock price of ₹883.25 is trading 3.1% above its estimated GF Value™ of ₹856.74.
GuruFocus considers Titagarh Rail Systems to be Fairly Valued.
Key valuation signals for BOM:532966:
ROC %: 7.34%
GF Value™: ₹856.74 vs. price of ₹883.25 (3.1% above fair value)
Industry Position: 56.5% above the Transportation median
No single metric tells the full story. See the BOM:532966 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Titagarh Rail Systems Ltd manufactures and sells Freight Wagons, Passenger Coaches, Metro Trains, Train Electricals, Steel Castings, Specialised Equipment and Bridges, Ships and others. The segments of the group are Freight Rail Systems and Passenger Rail Systems. The majority of the company's revenue is generated from its Freight Rail Systems segment which consists of the manufacturing of wagons, loco shells, bogies, couplers, its components, designing and construction of warships, passenger vessels, tug, and specialized equipment for Defence, Bridge Girders, etc. Geographically, the company derives its key revenue from India and it also caters to International markets.
84GF Score
Get the complete analysis for BOM:532966
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:532966 has been successfully added to your 
