ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Piramal Finance's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 0.96%.
As of today (2026-07-07), Piramal Finance's WACC % is 5.43%. Piramal Finance's ROC % is 0.96% (calculated using TTM income statement data).
Piramal Finance earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Piramal Finance (BOM:544597) 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, Piramal Finance's WACC % is 5.43%. Piramal Finance's ROC % is 0.96% (calculated using TTM income statement data).
Piramal Finance 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.
Piramal Finance ROC % Related Terms
Piramal Finance ROC % Historical Data
* Premium members only.
The historical data trend for Piramal Finance'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 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.
Piramal Finance (BOM:544597) has a ROC % of 0.96% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Piramal Finance and its competitors.
Is Piramal Finance's ROC % too high?
Piramal Finance's current ROC % is 0.96%. The Credit Services industry median ROC % is 2.03. Piramal Finance's value of 0.96% is 52.6% below this industry median. Overall, Piramal Finance has a GF Score™ of 26/100, reflecting its overall financial health beyond just this single metric.
How does Piramal Finance's ROC % compare to V and MA?
Piramal Finance's ROC % of 0.96% can be compared against companies in the Credit Services industry. The industry median ROC % is 2.03. Piramal Finance's value of 0.96% is 52.6% below 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 Credit Services company?
The median ROC % among Credit Services companies is 2.03, based on 416 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. Piramal Finance's current ROC % of 0.96% is 52.6% below 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 Piramal Finance and its competitors. For the Credit Services industry, the median ROC % is 2.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Piramal Finance's current ROC % is 0.96%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Piramal Finance stock overvalued right now?
Piramal Finance (BOM:544597) has a current ROC % of 0.96%. The current ROC % is 0.96% and 52.6% below the Credit Services industry median of 2.03. Piramal Finance's overall GF Score™ is 26/100 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 Piramal Finance (BOM:544597), the current ROC % is 0.96% 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.
Piramal Finance Ltd main business is providing loans to customers for construction or purchase of residential property, loans against property, loans to real estate developers, loans to SMEs, Consumption loans, etc. Its loan products are Home Loan, Construction Loan, Renovation Loan, Extension Loan, Business Loans, Loan Against Property, Small Business Loan, Working Capital Loan, Personal Loan, Used Car Loan, Group Loan, Loan Against Securities, Loan Against Car, Insurance Services, Interest Rates & Disclosures, Wholesale Lending, Alternatives, etc. The company's business segments are Retail Lending, Wholesale Lending, Alternatives, and Life Insurance. The Company has identified only one reportable business segment & geographical segment as it deals mainly in lending business within India.
26GF Score
Get the complete analysis for BOM:544597
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:544597 has been successfully added to your 
