Amba Autoles and Services (NSE:AMBAAUTO) ROC %: 20.91% (As of Mar. 2025)

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NSE:AMBAAUTO Amba Auto Sales and Services Ltd NSE:AMBAAUTO
16 GF Score
Price ₹103.30
! 2 Warning Signs
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What is Amba Autoles and Services ROC %?

Amba Autoles and Services NSE:AMBAAUTO +1.77% 16 ROC % is 20.91% as of Mar. 2025. GuruFocus rates NSE:AMBAAUTO with a GF Score™ of 16/100. The stock has 2 warning signs investors should review.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Amba Autoles and Services's annualized return on capital (ROC %) for the quarter that ended in Mar. 2025 was 20.91%.

As of today (2026-08-09), Amba Autoles and Services's WACC % is 12.12%. Amba Autoles and Services's ROC % is 20.91% (calculated using TTM income statement data). Amba Autoles and Services 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.


Amba Autoles and Services  (NSE:AMBAAUTO) 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, Amba Autoles and Services's WACC % is 12.12%. Amba Autoles and Services's ROC % is 20.91% (calculated using TTM income statement data). Amba Autoles and Services 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.


Amba Autoles and Services ROC % Related Terms


Amba Autoles and Services ROC % Historical Data

* Premium members only.

The historical data trend for Amba Autoles and Services'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.

Amba Autoles and Services ROC % Chart

Amba Autoles and Services Annual Data
Trend Mar23 Mar24 Mar25
ROC %
8.25 14.76 20.91

Amba Autoles and Services Semi-Annual Data
Mar23 Mar24 Mar25
ROC % 8.25 14.76 20.91
NSE:AMBAAUTO
16GF Score
Amba Auto Sales and Services Ltd NSE:AMBAAUTO
ROC % is just one metric. See GF Score™, valuation, warning signs, and more.
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Amba Autoles and Services ROC % Calculation

Amba Autoles and Services's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2025 is calculated as:

ROC % (A: Mar. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Mar. 2024 ) + Invested Capital (A: Mar. 2025 ))/ count )
=167.861 * ( 1 - 25.39% )/( (463.107 + 734.57)/ 2 )
=125.2410921/598.8385
=20.91 %

where

Invested Capital(A: Mar. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=544.519 - 63.017 - ( 18.395 - max(0, 360.678 - 449.325+18.395))
=463.107

Amba Autoles and Services's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2025 is calculated as:

ROC % (Q: Mar. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2024 ) + Invested Capital (Q: Mar. 2025 ))/ count )
=167.861 * ( 1 - 25.39% )/( (463.107 + 734.57)/ 2 )
=125.2410921/598.8385
=20.91 %

where

Invested Capital(Q: Mar. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=544.519 - 63.017 - ( 18.395 - max(0, 360.678 - 449.325+18.395))
=463.107

Note: The Operating Income data used here is one times the annual (Mar. 2025) 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.

Frequently Asked Questions Learn more about ROC % →
What does a ROC % of 20.91% mean?
Amba Autoles and Services (NSE:AMBAAUTO) has a ROC % of 20.91% as of Mar. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Amba Autoles and Services and its competitors.
Is Amba Autoles and Services' ROC % too high?
Amba Autoles and Services' current ROC % is 20.91%. The Vehicles & Parts industry median ROC % is 5.05. Amba Autoles and Services' value of 20.91% is 314.1% above this industry median. Overall, Amba Autoles and Services has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Amba Autoles and Services' ROC % compare to CVNA and PAG?
Amba Autoles and Services' ROC % of 20.91% can be compared against companies in the Vehicles & Parts industry. The industry median ROC % is 5.05. Amba Autoles and Services' value of 20.91% is 314.1% 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 Vehicles & Parts company?
The median ROC % among Vehicles & Parts companies is 5.05, based on 1,307 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. Amba Autoles and Services's current ROC % of 20.91% is 314.1% 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 Amba Autoles and Services and its competitors. For the Vehicles & Parts industry, the median ROC % is 5.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Amba Autoles and Services's current ROC % is 20.91%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Amba Autoles and Services stock overvalued right now?
Amba Autoles and Services (NSE:AMBAAUTO) has a current ROC % of 20.91%. The current ROC % is 20.91% and 314.1% above the Vehicles & Parts industry median of 5.05. Amba Autoles and Services' overall GF Score™ is 16/100 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 Amba Autoles and Services (NSE:AMBAAUTO), the current ROC % is 20.91% as of Mar. 2025. 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.

Amba Autoles and Services Business Description

Address 7, Hongasandra, Survey No. 442/2A, 443/2B, Bangalore, KA, IND, 560068
Amba Auto Sales and Services Ltd operates as an authorised dealer of Bajaj Auto Limited and LG Electronics India Limited under the brand names Amba Bajaj and Amba LG Best Shop, respectively. It is engaged in the retail sale of automobiles and consumer electronics, along with related services such as after-sales service, repairs, spare parts sales, and facilitation of financial and insurance products. Additionally, in consumer electronics, its product offerings include air conditioners, televisions, washing machines, refrigerators and small appliances. The majority of the company's revenue is derived from the sale of vehicles, mainly three-wheelers.
16GF 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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