Modis Navnirman (BOM:543539) ROC % : 7.15% (As of Sep. 2024)

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What is Modis Navnirman ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Modis Navnirman's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 7.15%.

As of today (2024-12-14), Modis Navnirman's WACC % is 12.63%. Modis Navnirman's ROC % is 8.76% (calculated using TTM income statement data). Modis Navnirman earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Modis Navnirman ROC % Historical Data

The historical data trend for Modis Navnirman'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.

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Modis Navnirman ROC % Chart

Modis Navnirman Annual Data

Trend

Mar20

Mar21

Mar22

Mar23

Mar24

ROC %

18.71

5.81

5.24

16.86

9.04

Modis Navnirman Semi-Annual Data
	Mar20	Mar21	Mar22	Sep22	Mar23	Sep23	Mar24	Sep24
ROC %	Get a 7-Day Free Trial			19.59	13.33	8.88	10.79	7.15

Modis Navnirman ROC % Calculation

Modis Navnirman's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2024 is calculated as:

	ROC % (A: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2023 )	+	Invested Capital (A: Mar. 2024 ))	/ count )
=	90.32 * ( 1 - 26.17% )	/	( (509.669	+	965.14)	/ 2 )
=	66.683256	/	737.4045
=	9.04 %

where

	Invested Capital		(A: Mar. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	594.152	-	58.249	-	( 26.234	-	max(0, 196.902	-	583.28	+	26.234	))
=	509.669

	Invested Capital		(A: Mar. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	1126.899	-	85.079	-	( 76.68	-	max(0, 214.287	-	960.778	+	76.68	))
=	965.14

Modis Navnirman's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2024 is calculated as:

	ROC % (Q: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	104.392 * ( 1 - 25.18% )	/	( (965.14	+	1220.004)	/ 2 )
=	78.1060944	/	1092.572
=	7.15 %

where

	Invested Capital		(Q: Mar. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	1126.899	-	85.079	-	( 76.68	-	max(0, 214.287	-	960.778	+	76.68	))
=	965.14

	Invested Capital		(Q: Sep. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	1338.05	-	87.232	-	( 30.814	-	max(0, 298.343	-	1259.492	+	30.814	))
=	1220.004

Note: The Operating Income data used here is two times the semi-annual (Sep. 2024) data.

Modis Navnirman (BOM:543539) 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, Modis Navnirman's WACC % is 12.63%. Modis Navnirman's ROC % is 8.76% (calculated using TTM income statement data). Modis Navnirman 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.

Modis Navnirman ROC % Related Terms

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Modis Navnirman Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Modis Navnirman Ltd (BOM:543539) » Definitions » ROC %

Traded in Other Exchanges

N/A

Address

M G Road, Shop No. 1, Rashmi Heights, Opposite Kamla Nagar, Kandivali (West), Mumbai, MH, IND, 400067

Website

https://www.modisnirman.com

Modis Navnirman Ltd is engaged in the real estate sector. It focuses on the mid-market and affordable housing categories as its target segment within the residential housing market. The company's projects are located in the western suburbs of Mumbai specifically in and around the areas of Borivali, Kandivali, Malad and Goregaon. The company projects are Rashmi Enclave, Badshah Residency, Rashmi Jewel, Rashmi Terrace and others.

Modis Navnirman Headlines

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