ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Gulf Oil Lubricants India's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 29.06%.
As of today (2026-07-02), Gulf Oil Lubricants India's WACC % is 13.32%. Gulf Oil Lubricants India's ROC % is 27.89% (calculated using TTM income statement data).
Gulf Oil Lubricants 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.
Gulf Oil Lubricants India (BOM:538567) 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, Gulf Oil Lubricants India's WACC % is 13.32%. Gulf Oil Lubricants India's ROC % is 27.89% (calculated using TTM income statement data).
Gulf Oil Lubricants 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.
Gulf Oil Lubricants India (BOM:538567) has a ROC % of 29.06% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Gulf Oil Lubricants India and its competitors.
Is Gulf Oil Lubricants India's ROC % too high?
Gulf Oil Lubricants India's current ROC % is 29.06%. The Chemicals industry median ROC % is 4.46. Gulf Oil Lubricants India's value of 29.06% is 551.6% above this industry median. Overall, Gulf Oil Lubricants India has a GF Score™ of 90/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Gulf Oil Lubricants India's ROC % compare to LIN and SHW?
Gulf Oil Lubricants India's ROC % of 29.06% can be compared against companies in the Chemicals industry. The industry median ROC % is 4.46. Gulf Oil Lubricants India's value of 29.06% is 551.6% 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 4.46, based on 1,580 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. Gulf Oil Lubricants India's current ROC % of 29.06% is 551.6% 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 Gulf Oil Lubricants India and its competitors. For the Chemicals industry, the median ROC % is 4.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gulf Oil Lubricants India's current ROC % is 29.06%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gulf Oil Lubricants India stock overvalued right now?
Based on GuruFocus' analysis, Gulf Oil Lubricants India (BOM:538567) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹1,303.31, compared to a current price of ₹1,048.85 — trading 19.5% below its estimated fair value. The current ROC % is 29.06% and 551.6% above the Chemicals industry median of 4.46. Gulf Oil Lubricants India's overall GF Score™ is 90/100 with 1 warning sign 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 Gulf Oil Lubricants India (BOM:538567), the current ROC % is 29.06% 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 Gulf Oil Lubricants India (BOM:538567) Overvalued in 2026?
Based on GuruFocus' analysis, Gulf Oil Lubricants India stock appears to be undervalued.
The current stock price of ₹1,048.85 is trading 19.5% below its estimated GF Value™ of ₹1,303.31.
GuruFocus considers Gulf Oil Lubricants India to be Modestly Undervalued.
Key valuation signals for BOM:538567:
ROC %: 29.06%
GF Value™: ₹1,303.31 vs. price of ₹1,048.85 (19.5% below fair value)
Industry Position: 551.6% above the Chemicals median
No single metric tells the full story. See the BOM:538567 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gulf Oil Lubricants India Ltd manufactures, markets, and trades lubricants and greases used in the automotive and industrial industries. The company is a subsidiary of the Hinduja Group, which owns businesses in a variety of sectors in multiple continents. The company provides products for all types of commercial vehicles to individual and institutional customers across the automotive, agricultural, industrial, construction, and marine divisions. The company exports some of its products, however, majority of revenue is derived from sales inside India.
90GF 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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