ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Cherat Cement Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 14.14%.
As of today (2026-06-26), Cherat Cement Co's WACC % is 10.00%. Cherat Cement Co's ROC % is 20.09% (calculated using TTM income statement data).
Cherat Cement Co 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.
Cherat Cement Co (KAR:CHCC) 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, Cherat Cement Co's WACC % is 10.00%. Cherat Cement Co's ROC % is 20.09% (calculated using TTM income statement data).
Cherat Cement Co 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.
Cherat Cement Co ROC % Related Terms
Cherat Cement Co ROC % Historical Data
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The historical data trend for Cherat Cement Co'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.
Cherat Cement Co (KAR:CHCC) has a ROC % of 14.14% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Cherat Cement Co and its competitors.
Is Cherat Cement Co's ROC % too high?
Cherat Cement Co's current ROC % is 14.14%. The Building Materials industry median ROC % is 3.58. Cherat Cement Co's value of 14.14% is 295% above this industry median. Overall, Cherat Cement Co has a GF Score™ of 88/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cherat Cement Co's ROC % compare to CRH and VMC?
Cherat Cement Co's ROC % of 14.14% can be compared against companies in the Building Materials industry. The industry median ROC % is 3.58. Cherat Cement Co's value of 14.14% is 295% 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 Building Materials company?
The median ROC % among Building Materials companies is 3.58, based on 399 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. Cherat Cement Co's current ROC % of 14.14% is 295% 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 Cherat Cement Co and its competitors. For the Building Materials industry, the median ROC % is 3.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cherat Cement Co's current ROC % is 14.14%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cherat Cement Co stock overvalued right now?
Based on GuruFocus' analysis, Cherat Cement Co (KAR:CHCC) is currently considered Significantly Overvalued. The stock's GF Value™ is ₨249.05, compared to a current price of ₨339.33 — trading 36.2% above its estimated fair value. The current ROC % is 14.14% and 295% above the Building Materials industry median of 3.58. Cherat Cement Co's overall GF Score™ is 88/100 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 Cherat Cement Co (KAR:CHCC), the current ROC % is 14.14% 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.
Is Cherat Cement Co (KAR:CHCC) Overvalued in 2026?
Based on GuruFocus' analysis, Cherat Cement Co stock appears to be overvalued.
The current stock price of ₨339.33 is trading 36.2% above its estimated GF Value™ of ₨249.05.
GuruFocus considers Cherat Cement Co to be Significantly Overvalued.
Key valuation signals for KAR:CHCC:
ROC %: 14.14%
GF Value™: ₨249.05 vs. price of ₨339.33 (36.2% above fair value)
Industry Position: 295% above the Building Materials median
No single metric tells the full story. See the KAR:CHCC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cherat Cement Co Ltd is a Ghulam Faruque Group (GFG) Company. Its main business activity is the manufacturing, marketing, and sale of cement. The main product is ordinary Portland Cement, branded as Cherat, with the introduction of composite Cement named Cherat Khyber. The manufacturing plant is located in Village Lakrai, District Nowshera, Khyber Pakhtunkhwa, Pakistan. The product is actively exported to the Afghanistan market.
88GF Score
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