ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Sky Gold and Diamonds's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 21.26%.
As of today (2026-07-06), Sky Gold and Diamonds's WACC % is 11.24%. Sky Gold and Diamonds's ROC % is 19.80% (calculated using TTM income statement data).
Sky Gold and Diamonds 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.
Sky Gold and Diamonds (BOM:541967) 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, Sky Gold and Diamonds's WACC % is 11.24%. Sky Gold and Diamonds's ROC % is 19.80% (calculated using TTM income statement data).
Sky Gold and Diamonds 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.
Sky Gold and Diamonds (BOM:541967) has a ROC % of 21.26% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Sky Gold and Diamonds and its competitors.
Is Sky Gold and Diamonds' ROC % too high?
Sky Gold and Diamonds' current ROC % is 21.26%. The Retail - Cyclical industry median ROC % is 4.38. Sky Gold and Diamonds' value of 21.26% is 385.9% above this industry median. Overall, Sky Gold and Diamonds has a GF Score™ of 89/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sky Gold and Diamonds' ROC % compare to TPR?
Sky Gold and Diamonds' ROC % of 21.26% can be compared against companies in the Retail - Cyclical industry. The industry median ROC % is 4.38. Sky Gold and Diamonds' value of 21.26% is 385.9% 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 a Retail - Cyclical company?
The median ROC % among Retail - Cyclical companies is 4.38, based on 1,106 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. Sky Gold and Diamonds's current ROC % of 21.26% is 385.9% 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 Sky Gold and Diamonds and its competitors. For the Retail - Cyclical industry, the median ROC % is 4.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sky Gold and Diamonds's current ROC % is 21.26%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sky Gold and Diamonds stock overvalued right now?
Based on GuruFocus' analysis, Sky Gold and Diamonds (BOM:541967) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹466.57, compared to a current price of ₹560.10 — trading 20% above its estimated fair value. The current ROC % is 21.26% and 385.9% above the Retail - Cyclical industry median of 4.38. Sky Gold and Diamonds' overall GF Score™ is 89/100 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 Sky Gold and Diamonds (BOM:541967), the current ROC % is 21.26% 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 Sky Gold and Diamonds (BOM:541967) Overvalued in 2026?
Based on GuruFocus' analysis, Sky Gold and Diamonds stock appears to be overvalued.
The current stock price of ₹560.10 is trading 20% above its estimated GF Value™ of ₹466.57.
GuruFocus considers Sky Gold and Diamonds to be Modestly Overvalued.
Key valuation signals for BOM:541967:
ROC %: 21.26%
GF Value™: ₹466.57 vs. price of ₹560.10 (20% above fair value)
Industry Position: 385.9% above the Retail - Cyclical median
No single metric tells the full story. See the BOM:541967 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sky Gold and Diamonds Ltd is an India-based company engaged in the business of designing, manufacturing, and marketing gold jewelry. It mainly deals in 22 Carat and 18 Carat gold jewellery, offering a wide variety of designs. The group provides an extensive range of designs and uses Natural,lab-grown, and American diamonds and/or colored gemstones in many of their jewellery products. The company's product portfolio includes necklaces, earrings, rings, bracelets, and others. The group operates in only one identifiable reportable segment is Gold jewelry.
89GF Score
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