ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. SDC Techmedia's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was -8.26%.
As of today (2026-07-02), SDC Techmedia's WACC % is 6.33%. SDC Techmedia's ROC % is -4.58% (calculated using TTM income statement data).
SDC Techmedia earns returns that do not match up to its cost of capital. It will destroy value as it grows.
SDC Techmedia (BOM:535647) 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, SDC Techmedia's WACC % is 6.33%. SDC Techmedia's ROC % is -4.58% (calculated using TTM income statement data).
SDC Techmedia 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.
SDC Techmedia ROC % Related Terms
SDC Techmedia ROC % Historical Data
* Premium members only.
The historical data trend for SDC Techmedia'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 two times the semi-annual (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.
SDC Techmedia (BOM:535647) has a ROC % of -8.26% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on SDC Techmedia and its competitors.
Is SDC Techmedia's ROC % too high?
SDC Techmedia's current ROC % is -8.26%. Overall, SDC Techmedia has a GF Score™ of 41/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SDC Techmedia's ROC % compare to NFLX and DIS?
SDC Techmedia's ROC % of -8.26% can be compared against companies in the Media - Diversified industry. The industry median ROC % is 1.40. 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 Media - Diversified company?
The median ROC % among Media - Diversified companies is 1.40, based on 1,009 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. 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 SDC Techmedia and its competitors. For the Media - Diversified industry, the median ROC % is 1.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SDC Techmedia's current ROC % is -8.26%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SDC Techmedia stock overvalued right now?
Based on GuruFocus' analysis, SDC Techmedia (BOM:535647) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹8.40, compared to a current price of ₹18.05 — trading 114.9% above its estimated fair value. The current ROC % is -8.26%. SDC Techmedia's 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 SDC Techmedia (BOM:535647), the current ROC % is -8.26% 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 SDC Techmedia (BOM:535647) Overvalued in 2026?
Based on GuruFocus' analysis, SDC Techmedia stock appears to be overvalued.
The current stock price of ₹18.05 is trading 114.9% above its estimated GF Value™ of ₹8.40.
GuruFocus considers SDC Techmedia to be Significantly Overvalued.
Key valuation signals for BOM:535647:
ROC %: -8.26%
GF Value™: ₹8.40 vs. price of ₹18.05 (114.9% above fair value)
No single metric tells the full story. See the BOM:535647 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SDC Techmedia Ltd operates in the business of media and event management. It is also involved in the reproduction of recorded media. Its services are to aggregate and market audio or video and movie contents of various languages in the local and international market, to acquire old movie rights, dub in a range of languages and market to various television channels, and to produce animation films, short movies, or documentary movies. The firm also produces animation movies and television serials, and movies, leasing and renting of 4k Projectors to the Theaters, Cinema Halls, and Multiplexes. It generates revenue based on the functioning of Theaters, Cinema Halls & Multiplexes in the State of Tamil Nadu and other cities of Southern States of India.
41GF Score
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