ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. VVIP Infratech's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 5.49%.
As of today (2026-07-08), VVIP Infratech's WACC % is 10.29%. VVIP Infratech's ROC % is 7.75% (calculated using TTM income statement data).
VVIP Infratech earns returns that do not match up to its cost of capital. It will destroy value as it grows.
VVIP Infratech (BOM:544219) 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, VVIP Infratech's WACC % is 10.29%. VVIP Infratech's ROC % is 7.75% (calculated using TTM income statement data).
VVIP Infratech 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.
VVIP Infratech ROC % Related Terms
VVIP Infratech ROC % Historical Data
* Premium members only.
The historical data trend for VVIP Infratech'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 two times the semi-annual (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.
VVIP Infratech (BOM:544219) has a ROC % of 5.49% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on VVIP Infratech and its competitors.
Is VVIP Infratech's ROC % too high?
VVIP Infratech's current ROC % is 5.49%. The Construction industry median ROC % is 4.67. VVIP Infratech's value of 5.49% is 17.6% above this industry median. Overall, VVIP Infratech has a GF Score™ of 46/100, reflecting its overall financial health beyond just this single metric.
How does VVIP Infratech's ROC % compare to PWR and FIX?
VVIP Infratech's ROC % of 5.49% can be compared against companies in the Construction industry. The industry median ROC % is 4.67. VVIP Infratech's value of 5.49% is 17.6% 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 1,751 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. VVIP Infratech's current ROC % of 5.49% is 17.6% 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 VVIP Infratech 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. VVIP Infratech's current ROC % is 5.49%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is VVIP Infratech stock overvalued right now?
VVIP Infratech (BOM:544219) has a current ROC % of 5.49%. The current ROC % is 5.49% and 17.6% above the Construction industry median of 4.67. VVIP Infratech's overall GF Score™ is 46/100 with 10 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 VVIP Infratech (BOM:544219), the current ROC % is 5.49% 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.
VVIP Infratech Ltd is an infrastructure company in India. It is engaged in the business of construction of Infrastructure Projects, Sewer, Sewer Treatment plants, Water Tanks, Water treatment plants, Road sector development, Electrification Development and its Transmission and Distribution Infrastructure and Civil Construction Work. The company is working on projects in the states of Uttar Pradesh, Uttarakhand, NCR Delhi and other northern Parts of India.
46GF Score
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