Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Patel Chem Specialities's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 13.99%.
As of today (2026-08-07), Patel Chem Specialities's WACC % is 12.42%. Patel Chem Specialities's ROC % is 16.29% (calculated using TTM income statement data).
Patel Chem Specialities 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.
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, Patel Chem Specialities's WACC % is 12.42%. Patel Chem Specialities's ROC % is 16.29% (calculated using TTM income statement data).
Patel Chem Specialities 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 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.
Patel Chem Specialities (BOM:544460) has a ROC % of 13.99% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Patel Chem Specialities and its competitors.
Is Patel Chem Specialities' ROC % too high?
Patel Chem Specialities' current ROC % is 13.99%. The Chemicals industry median ROC % is 4.55. Patel Chem Specialities' value of 13.99% is 207.5% above this industry median. Overall, Patel Chem Specialities has a GF Score™ of 18/100, reflecting its overall financial health beyond just this single metric.
How does Patel Chem Specialities' ROC % compare to DOW?
Patel Chem Specialities' ROC % of 13.99% can be compared against companies in the Chemicals industry. The industry median ROC % is 4.55. Patel Chem Specialities' value of 13.99% is 207.5% 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 Chemicals company?
The median ROC % among Chemicals companies is 4.55, based on 1,581 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. Patel Chem Specialities's current ROC % of 13.99% is 207.5% 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 Patel Chem Specialities and its competitors. For the Chemicals industry, the median ROC % is 4.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Patel Chem Specialities's current ROC % is 13.99%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Patel Chem Specialities stock overvalued right now?
Patel Chem Specialities (BOM:544460) has a current ROC % of 13.99%. The current ROC % is 13.99% and 207.5% above the Chemicals industry median of 4.55. Patel Chem Specialities' overall GF Score™ is 18/100 with 2 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 Patel Chem Specialities (BOM:544460), the current ROC % is 13.99% 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.
Patel Chem Specialities Ltd operates in the field of specialty chemicals, particularly focusing on the production of cellulose-based excipients. It manufactures a diverse products that are critical to various industries, including pharmaceuticals, food & beverages, cosmetics, and numerous industrial applications. These chemicals are fundamental in the formulation of essential products such as tablets, food additives, personal care items, and industrial formulations. Its products play vital roles as binders, disintegrants, thickeners, stabilizers, and gelling agents, each serving a specialized function across multiple sectors.
18GF Score
Get the complete analysis for BOM:544460
ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
BOM:544460 has been successfully added to your 
