ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. India Cements's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 2.13%.
As of today (2026-06-27), India Cements's WACC % is 16.19%. India Cements's ROC % is 0.77% (calculated using TTM income statement data).
India Cements earns returns that do not match up to its cost of capital. It will destroy value as it grows.
India Cements (LUX:INC05) 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, India Cements's WACC % is 16.19%. India Cements's ROC % is 0.77% (calculated using TTM income statement data).
India Cements 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.
India Cements ROC % Related Terms
India Cements ROC % Historical Data
* Premium members only.
The historical data trend for India Cements'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.
India Cements (LUX:INC05) has a ROC % of 2.13% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on India Cements and its competitors.
Is India Cements' ROC % too high?
India Cements' current ROC % is 2.13%. The Building Materials industry median ROC % is 3.58. India Cements' value of 2.13% is 40.5% below this industry median. Overall, India Cements has a GF Score™ of 58/100, reflecting its overall financial health beyond just this single metric.
How does India Cements' ROC % compare to CRH and VMC?
India Cements' ROC % of 2.13% can be compared against companies in the Building Materials industry. The industry median ROC % is 3.58. India Cements' value of 2.13% is 40.5% 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 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. India Cements's current ROC % of 2.13% is 40.5% 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 India Cements 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. India Cements's current ROC % is 2.13%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is India Cements stock overvalued right now?
India Cements (LUX:INC05) has a current ROC % of 2.13%. The stock's GF Value™ is $4.33, compared to a current price of $7.10 — trading 64% above its estimated fair value. The current ROC % is 2.13% and 40.5% below the Building Materials industry median of 3.58. India Cements' overall GF Score™ is 58/100 with 3 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 India Cements (LUX:INC05), the current ROC % is 2.13% 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 India Cements (LUX:INC05) Overvalued in 2026?
Based on GuruFocus' analysis, India Cements stock appears to be overvalued.
The current stock price of $7.10 is trading 64% above its estimated GF Value™ of $4.33.
Key valuation signals for LUX:INC05:
ROC %: 2.13%
GF Value™: $4.33 vs. price of $7.10 (64% above fair value)
Industry Position: 40.5% below the Building Materials median
No single metric tells the full story. See the LUX:INC05 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
India Cements Ltd is a cement manufacturing company. It is engaged in the manufacturing and sale of cement and cement-related products. Its brands include: Conkrete Super King; Coromandel King; Sankar Super Power; Raasi Gold; Halo Super King and others.
58GF Score
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ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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