ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Pilani Investment and Industries's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 0.42%.
As of today (2026-07-02), Pilani Investment and Industries's WACC % is 13.86%. Pilani Investment and Industries's ROC % is 0.89% (calculated using TTM income statement data).
Pilani Investment and Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Pilani Investment and Industries (BOM:539883) 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, Pilani Investment and Industries's WACC % is 13.86%. Pilani Investment and Industries's ROC % is 0.89% (calculated using TTM income statement data).
Pilani Investment and Industries 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.
Pilani Investment and Industries ROC % Related Terms
Pilani Investment and Industries ROC % Historical Data
* 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.
Pilani Investment and Industries (BOM:539883) has a ROC % of 0.42% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Pilani Investment and Industries and its competitors.
Is Pilani Investment and Industries' ROC % too high?
Pilani Investment and Industries' current ROC % is 0.42%. The Asset Management industry median ROC % is 1.17. Pilani Investment and Industries' value of 0.42% is 64.1% below this industry median. Overall, Pilani Investment and Industries has a GF Score™ of 66/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Pilani Investment and Industries' ROC % compare to BLK and BX?
Pilani Investment and Industries' ROC % of 0.42% can be compared against companies in the Asset Management industry. The industry median ROC % is 1.17. Pilani Investment and Industries' value of 0.42% is 64.1% below 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 Asset Management company?
The median ROC % among Asset Management companies is 1.17, based on 706 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. Pilani Investment and Industries's current ROC % of 0.42% is 64.1% below 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 Pilani Investment and Industries and its competitors. For the Asset Management industry, the median ROC % is 1.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pilani Investment and Industries's current ROC % is 0.42%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pilani Investment and Industries stock overvalued right now?
Based on GuruFocus' analysis, Pilani Investment and Industries (BOM:539883) is currently considered Fairly Valued. The stock's GF Value™ is ₹4,175.21, compared to a current price of ₹4,414.40 — trading 5.7% above its estimated fair value. The current ROC % is 0.42% and 64.1% below the Asset Management industry median of 1.17. Pilani Investment and Industries' overall GF Score™ is 66/100 with 4 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 Pilani Investment and Industries (BOM:539883), the current ROC % is 0.42% 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 Pilani Investment and Industries (BOM:539883) Overvalued in 2026?
Based on GuruFocus' analysis, Pilani Investment and Industries stock appears to be overvalued.
The current stock price of ₹4,414.40 is trading 5.7% above its estimated GF Value™ of ₹4,175.21.
GuruFocus considers Pilani Investment and Industries to be Fairly Valued.
Key valuation signals for BOM:539883:
ROC %: 0.42%
GF Value™: ₹4,175.21 vs. price of ₹4,414.40 (5.7% above fair value)
Industry Position: 64.1% below the Asset Management median
No single metric tells the full story. See the BOM:539883 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pilani Investment and Industries Business Description
Pilani Investment and Industries Corp Ltd is engaged in investment and financing activities, including investments in various companies and mutual funds, and the granting of unsecured loans to various companies. The company operates only in India.
66GF Score
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