ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Laxmipati Engineering Works's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 12.85%.
As of today (2026-07-01), Laxmipati Engineering Works's WACC % is 0.71%. Laxmipati Engineering Works's ROC % is 13.52% (calculated using TTM income statement data).
Laxmipati Engineering Works 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.
Laxmipati Engineering Works (BOM:537669) 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, Laxmipati Engineering Works's WACC % is 0.71%. Laxmipati Engineering Works's ROC % is 13.52% (calculated using TTM income statement data).
Laxmipati Engineering Works 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 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.
Laxmipati Engineering Works (BOM:537669) has a ROC % of 12.85% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Laxmipati Engineering Works and its competitors.
Is Laxmipati Engineering Works' ROC % too high?
Laxmipati Engineering Works' current ROC % is 12.85%. The Aerospace & Defense industry median ROC % is 4.37. Laxmipati Engineering Works' value of 12.85% is 194.1% above this industry median. Overall, Laxmipati Engineering Works has a GF Score™ of 67/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Laxmipati Engineering Works' ROC % compare to SPCX and GE?
Laxmipati Engineering Works' ROC % of 12.85% can be compared against companies in the Aerospace & Defense industry. The industry median ROC % is 4.37. Laxmipati Engineering Works' value of 12.85% is 194.1% 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 an Aerospace & Defense company?
The median ROC % among Aerospace & Defense companies is 4.37, based on 352 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. Laxmipati Engineering Works's current ROC % of 12.85% is 194.1% 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 Laxmipati Engineering Works and its competitors. For the Aerospace & Defense industry, the median ROC % is 4.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Laxmipati Engineering Works's current ROC % is 12.85%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Laxmipati Engineering Works stock overvalued right now?
Based on GuruFocus' analysis, Laxmipati Engineering Works (BOM:537669) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹317.82, compared to a current price of ₹506.70 — trading 59.4% above its estimated fair value. The current ROC % is 12.85% and 194.1% above the Aerospace & Defense industry median of 4.37. Laxmipati Engineering Works' overall GF Score™ is 67/100 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 Laxmipati Engineering Works (BOM:537669), the current ROC % is 12.85% 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 Laxmipati Engineering Works (BOM:537669) Overvalued in 2026?
Based on GuruFocus' analysis, Laxmipati Engineering Works stock appears to be overvalued.
The current stock price of ₹506.70 is trading 59.4% above its estimated GF Value™ of ₹317.82.
GuruFocus considers Laxmipati Engineering Works to be Significantly Overvalued.
Key valuation signals for BOM:537669:
ROC %: 12.85%
GF Value™: ₹317.82 vs. price of ₹506.70 (59.4% above fair value)
Industry Position: 194.1% above the Aerospace & Defense median
No single metric tells the full story. See the BOM:537669 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Laxmipati Engineering Works Ltd is engaged in the business of fabrication, heavy engineering, engineering infrastructure and services, and shut down maintenance projects. The company has two segments: Fabrication and Shipyard.
67GF Score
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