ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Ameya Precision Engineers's annualized return on capital (ROC %) for the quarter that ended in Sep. 2025 was 20.46%.
As of today (2026-06-26), Ameya Precision Engineers's WACC % is 8.31%. Ameya Precision Engineers's ROC % is 20.07% (calculated using TTM income statement data).
Ameya Precision Engineers 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.
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, Ameya Precision Engineers's WACC % is 8.31%. Ameya Precision Engineers's ROC % is 20.07% (calculated using TTM income statement data).
Ameya Precision Engineers 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.
* 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 two times the semi-annual (Sep. 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.
Ameya Precision Engineers (NSE:AMEYA) has a ROC % of 20.46% as of Sep. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Ameya Precision Engineers and its competitors.
Is Ameya Precision Engineers' ROC % too high?
Ameya Precision Engineers' current ROC % is 20.46%. The Industrial Products industry median ROC % is 5.23. Ameya Precision Engineers' value of 20.46% is 291.6% above this industry median. Overall, Ameya Precision Engineers has a GF Score™ of 83/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ameya Precision Engineers' ROC % compare to ATI and CRS?
Ameya Precision Engineers' ROC % of 20.46% can be compared against companies in the Industrial Products industry. The industry median ROC % is 5.23. Ameya Precision Engineers' value of 20.46% is 291.6% 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 an Industrial Products company?
The median ROC % among Industrial Products companies is 5.23, based on 3,040 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. Ameya Precision Engineers's current ROC % of 20.46% is 291.6% 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 Ameya Precision Engineers and its competitors. For the Industrial Products industry, the median ROC % is 5.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ameya Precision Engineers's current ROC % is 20.46%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ameya Precision Engineers stock overvalued right now?
Based on GuruFocus' analysis, Ameya Precision Engineers (NSE:AMEYA) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹93.09, compared to a current price of ₹106.00 — trading 13.9% above its estimated fair value. The current ROC % is 20.46% and 291.6% above the Industrial Products industry median of 5.23. Ameya Precision Engineers' overall GF Score™ is 83/100 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 Ameya Precision Engineers (NSE:AMEYA), the current ROC % is 20.46% as of Sep. 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.
Is Ameya Precision Engineers (NSE:AMEYA) Overvalued in 2026?
Based on GuruFocus' analysis, Ameya Precision Engineers stock appears to be overvalued.
The current stock price of ₹106.00 is trading 13.9% above its estimated GF Value™ of ₹93.09.
GuruFocus considers Ameya Precision Engineers to be Modestly Overvalued.
Key valuation signals for NSE:AMEYA:
ROC %: 20.46%
GF Value™: ₹93.09 vs. price of ₹106.00 (13.9% above fair value)
Industry Position: 291.6% above the Industrial Products median
No single metric tells the full story. See the NSE:AMEYA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ameya Precision Engineers Ltd is engaged in the manufacture of pump and valve components, as well as other engineering components used in the valve industry. The company mainly manufactures shafts, stems, hard-facing and corrosion-resistant overlays, precision trim parts, and assemblies. Its clients operate in sectors such as oil and gas, power, water management, and defense. The company conducts both domestic and export sales, with the majority of its revenue coming from export sales.
83GF Score
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