ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Avonmore Capital & Management Services's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was -9.10%.
Avonmore Capital & Management Services (NSE:AVONMORE) 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, Avonmore Capital & Management Services's WACC % is 17.66%. Avonmore Capital & Management Services's ROC % is 1.24% (calculated using TTM income statement data).
Avonmore Capital & Management Services 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.
Avonmore Capital & Management Services ROC % Related Terms
Avonmore Capital & Management Services ROC % Historical Data
* 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.
Avonmore Capital & Management Services ROC % Chart
Avonmore Capital & Management Services Annual Data
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.
Avonmore Capital & Management Services (NSE:AVONMORE) has a ROC % of -9.10% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Avonmore Capital & Management Services and its competitors.
Is Avonmore Capital & Management Services' ROC % too high?
Avonmore Capital & Management Services' current ROC % is -9.10%. Overall, Avonmore Capital & Management Services has a GF Score™ of 83/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Avonmore Capital & Management Services' ROC % compare to MS and GS?
Avonmore Capital & Management Services' ROC % of -9.10% can be compared against companies in the Capital Markets industry. The industry median ROC % is 1.23. 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 Capital Markets company?
The median ROC % among Capital Markets companies is 1.23, based on 694 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. 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 Avonmore Capital & Management Services and its competitors. For the Capital Markets industry, the median ROC % is 1.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Avonmore Capital & Management Services's current ROC % is -9.10%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Avonmore Capital & Management Services stock overvalued right now?
Based on GuruFocus' analysis, Avonmore Capital & Management Services (NSE:AVONMORE) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹15.95, compared to a current price of ₹10.55 — trading 33.9% below its estimated fair value. The current ROC % is -9.10%. Avonmore Capital & Management Services' 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 Avonmore Capital & Management Services (NSE:AVONMORE), the current ROC % is -9.10% 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 Avonmore Capital & Management Services (NSE:AVONMORE) Overvalued in 2026?
Based on GuruFocus' analysis, Avonmore Capital & Management Services stock appears to be undervalued.
The current stock price of ₹10.55 is trading 33.9% below its estimated GF Value™ of ₹15.95.
GuruFocus considers Avonmore Capital & Management Services to be Significantly Undervalued.
Key valuation signals for NSE:AVONMORE:
ROC %: -9.10%
GF Value™: ₹15.95 vs. price of ₹10.55 (33.9% below fair value)
No single metric tells the full story. See the NSE:AVONMORE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Avonmore Capital & Management Services Business Description
Avonmore Capital & Management Services Ltd is a non-banking financial institution. The company's business segments are debt and equity market operations which comprise trading in securities and bonds; consultancy and advisory fees comprise merchant banking, underwriting commission, corporate and infrastructure advisory, and loan syndication fees and arranger of debts; investment activities comprise profit on the sale of an investment; finance activities comprise granting of loans; wealth advisory/broking activities; healthcare activities comprises to establish, administer, own and run the eye care hospitals. Wealth / Broking activities comprises commodity broking on various commodity exchanges in the country, stock and share broking on National Stock Exchange of India Limited.
83GF Score
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