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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Madhav Infra Projects's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 13.16%.
As of today (2026-07-18), Madhav Infra Projects's WACC % is 18.15%. Madhav Infra Projects's ROC % is 10.52% (calculated using TTM income statement data).
Madhav Infra Projects earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Madhav Infra Projects (BOM:539894) 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, Madhav Infra Projects's WACC % is 18.15%. Madhav Infra Projects's ROC % is 10.52% (calculated using TTM income statement data).
Madhav Infra Projects 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.
Madhav Infra Projects (BOM:539894) has a ROC % of 13.16% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Madhav Infra Projects and its competitors.
Is Madhav Infra Projects' ROC % too high?
Madhav Infra Projects' current ROC % is 13.16%. The Construction industry median ROC % is 4.67. Madhav Infra Projects' value of 13.16% is 182.1% above this industry median. Overall, Madhav Infra Projects has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Madhav Infra Projects' ROC % compare to PWR and FIX?
Madhav Infra Projects' ROC % of 13.16% can be compared against companies in the Construction industry. The industry median ROC % is 4.67. Madhav Infra Projects' value of 13.16% is 182.1% 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 a Construction company?
The median ROC % among Construction companies is 4.67, based on 1,758 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. Madhav Infra Projects's current ROC % of 13.16% is 182.1% 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 Madhav Infra Projects and its competitors. For the Construction industry, the median ROC % is 4.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Madhav Infra Projects's current ROC % is 13.16%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Madhav Infra Projects stock overvalued right now?
Based on GuruFocus' analysis, Madhav Infra Projects (BOM:539894) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹10.06, compared to a current price of ₹8.11 — trading 19.4% below its estimated fair value. The current ROC % is 13.16% and 182.1% above the Construction industry median of 4.67. Madhav Infra Projects' overall GF Score™ is 76/100 with 5 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 Madhav Infra Projects (BOM:539894), the current ROC % is 13.16% 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 Madhav Infra Projects (BOM:539894) Overvalued in 2026?
Based on GuruFocus' analysis, Madhav Infra Projects stock appears to be undervalued.
The current stock price of ₹8.11 is trading 19.4% below its estimated GF Value™ of ₹10.06.
GuruFocus considers Madhav Infra Projects to be Modestly Undervalued.
Key valuation signals for BOM:539894:
ROC %: 13.16%
GF Value™: ₹10.06 vs. price of ₹8.11 (19.4% below fair value)
Industry Position: 182.1% above the Construction median
No single metric tells the full story. See the BOM:539894 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Madhav Infra Projects Ltd is an India-based company engaged in the civil and engineering, procurement, and construction (EPC) contract business. The company is involved in the development, construction and operation and maintenance of various infrastructure projects. The Company operates in the fields of Highways, Urban Infrastructure, Real Estate and Energy. The company is also engaged in Power Generation Business.
76GF Score
Get the complete analysis for BOM:539894
ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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