ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Aditya Birla Capital's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 8.39%.
As of today (2026-06-25), Aditya Birla Capital's WACC % is 9.84%. Aditya Birla Capital's ROC % is 6.91% (calculated using TTM income statement data).
Aditya Birla Capital earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Aditya Birla Capital (NSE:ABCAPITAL) 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, Aditya Birla Capital's WACC % is 9.84%. Aditya Birla Capital's ROC % is 6.91% (calculated using TTM income statement data).
Aditya Birla Capital 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.
* 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 EBIT 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.
Aditya Birla Capital (NSE:ABCAPITAL) has a ROC % of 8.39% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Aditya Birla Capital and its competitors.
Is Aditya Birla Capital's ROC % too high?
Aditya Birla Capital's current ROC % is 8.39%. Overall, Aditya Birla Capital has a GF Score™ of 75/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Aditya Birla Capital's ROC % compare to FRHC and VOYA?
Aditya Birla Capital's ROC % of 8.39% can be compared against companies in the Diversified Financial Services industry. 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 Diversified Financial Services company?
A good ROC % depends on the Diversified Financial Services industry context. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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 Aditya Birla Capital and its competitors. Aditya Birla Capital's current ROC % is 8.39%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aditya Birla Capital stock overvalued right now?
Based on GuruFocus' analysis, Aditya Birla Capital (NSE:ABCAPITAL) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹244.53, compared to a current price of ₹394.80 — trading 61.5% above its estimated fair value. The current ROC % is 8.39%. Aditya Birla Capital's overall GF Score™ is 75/100 with 9 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 Aditya Birla Capital (NSE:ABCAPITAL), the current ROC % is 8.39% 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 Aditya Birla Capital (NSE:ABCAPITAL) Overvalued in 2026?
Based on GuruFocus' analysis, Aditya Birla Capital stock appears to be overvalued.
The current stock price of ₹394.80 is trading 61.5% above its estimated GF Value™ of ₹244.53.
GuruFocus considers Aditya Birla Capital to be Significantly Overvalued.
Key valuation signals for NSE:ABCAPITAL:
ROC %: 8.39%
GF Value™: ₹244.53 vs. price of ₹394.80 (61.5% above fair value)
No single metric tells the full story. See the NSE:ABCAPITAL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aditya Birla Capital Ltd is a financial service provider. The company's products include Non-Bank Financial Services, Housing Finance, Life Insurance, Asset Management, General Insurance Broking, Stock and Securities Broking, Health Insurance and Other Financial Services. Its operating segments consist of Lending, and Investing and Others. The Lending segment consists of Loans (personal, business, etc.), loan against property, structured finance, working capital loans, wealth management, distribution of financial products, etc. The Investing and Others segment includes investments in Group companies Geographically, it derives a majority of its revenue from India.
75GF Score
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