ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Cochin Shipyard's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 6.90%.
As of today (2026-07-01), Cochin Shipyard's WACC % is 20.41%. Cochin Shipyard's ROC % is 4.29% (calculated using TTM income statement data).
Cochin Shipyard earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Cochin Shipyard (BOM:540678) 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, Cochin Shipyard's WACC % is 20.41%. Cochin Shipyard's ROC % is 4.29% (calculated using TTM income statement data).
Cochin Shipyard 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.
Cochin Shipyard ROC % Related Terms
Cochin Shipyard ROC % Historical Data
* Premium members only.
The historical data trend for Cochin Shipyard'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 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.
Cochin Shipyard (BOM:540678) has a ROC % of 6.90% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Cochin Shipyard and its competitors.
Is Cochin Shipyard's ROC % too high?
Cochin Shipyard's current ROC % is 6.90%. The Aerospace & Defense industry median ROC % is 4.37. Cochin Shipyard's value of 6.90% is 57.9% above this industry median. Overall, Cochin Shipyard has a GF Score™ of 90/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cochin Shipyard's ROC % compare to SPCX and GE?
Cochin Shipyard's ROC % of 6.90% can be compared against companies in the Aerospace & Defense industry. The industry median ROC % is 4.37. Cochin Shipyard's value of 6.90% is 57.9% 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. Cochin Shipyard's current ROC % of 6.90% is 57.9% 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 Cochin Shipyard 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. Cochin Shipyard's current ROC % is 6.90%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cochin Shipyard stock overvalued right now?
Based on GuruFocus' analysis, Cochin Shipyard (BOM:540678) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹1,696.75, compared to a current price of ₹1,507.25 — trading 11.2% below its estimated fair value. The current ROC % is 6.90% and 57.9% above the Aerospace & Defense industry median of 4.37. Cochin Shipyard's overall GF Score™ is 90/100 with 6 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 Cochin Shipyard (BOM:540678), the current ROC % is 6.90% 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 Cochin Shipyard (BOM:540678) Overvalued in 2026?
Based on GuruFocus' analysis, Cochin Shipyard stock appears to be undervalued.
The current stock price of ₹1,507.25 is trading 11.2% below its estimated GF Value™ of ₹1,696.75.
GuruFocus considers Cochin Shipyard to be Modestly Undervalued.
Key valuation signals for BOM:540678:
ROC %: 6.90%
GF Value™: ₹1,696.75 vs. price of ₹1,507.25 (11.2% below fair value)
Industry Position: 57.9% above the Aerospace & Defense median
No single metric tells the full story. See the BOM:540678 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cochin Shipyard Ltd is an Indian-based company engaged in the business activities of Shipbuilding and Ship repair. The company has two operating segments, namely, Shipbuilding and Repair of Ships/Offshore Structures. It generates maximum revenue from the Shipbuilding segment. The Shipbuilding segment offers products such as Oil Tankers, Bulk Carriers, Electric Passenger Ferries, Pax Vessels, Tugs, Aircraft Carriers, Pollution Control Vessels, and many more. The Ship repair segment includes maintenance and repair of all types of vessels including Tankers, Bulk Carriers, Aircraft Carriers, Defense Vessels, and all kinds of Commercial and Specialized vessels.
90GF Score
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