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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Mehul Colours's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 9.52%.
As of today (2026-08-10), Mehul Colours's WACC % is 12.79%. Mehul Colours's ROC % is 19.12% (calculated using TTM income statement data).
Mehul Colours 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, Mehul Colours's WACC % is 12.79%. Mehul Colours's ROC % is 19.12% (calculated using TTM income statement data).
Mehul Colours 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.
Mehul Colours ROC % Related Terms
Mehul Colours ROC % Historical Data
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The historical data trend for Mehul Colours'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.
Mehul Colours (BOM:544472) has a ROC % of 9.52% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Mehul Colours and its competitors.
Is Mehul Colours' ROC % too high?
Mehul Colours' current ROC % is 9.52%. The Chemicals industry median ROC % is 4.54. Mehul Colours' value of 9.52% is 109.7% above this industry median. Overall, Mehul Colours has a GF Score™ of 21/100, reflecting its overall financial health beyond just this single metric.
How does Mehul Colours' ROC % compare to LIN and SHW?
Mehul Colours' ROC % of 9.52% can be compared against companies in the Chemicals industry. The industry median ROC % is 4.54. Mehul Colours' value of 9.52% is 109.7% 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 4.54, 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. Mehul Colours's current ROC % of 9.52% is 109.7% 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 Mehul Colours and its competitors. For the Chemicals industry, the median ROC % is 4.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mehul Colours's current ROC % is 9.52%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mehul Colours stock overvalued right now?
Mehul Colours (BOM:544472) has a current ROC % of 9.52%. The current ROC % is 9.52% and 109.7% above the Chemicals industry median of 4.54. Mehul Colours' overall GF Score™ is 21/100 with 4 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 Mehul Colours (BOM:544472), the current ROC % is 9.52% 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.
Mehul Colours Ltd is engaged in the manufacturing of masterbatches, which are used in the plastics industry to impart colour and enhance the functional properties of plastic products. Masterbatches are concentrated mixtures of pigments and additives that are uniformly dispersed in polymer carriers, facilitating the effective integration of colour and performance-enhancing properties into plastic products. In addition to manufacturing masterbatches, it is also engaged in the sale of pigments, which are blended by the company to create customized pigment solutions tailored to specific industry and customer requirements.
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