ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Azad Engineering's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 6.65%.
As of today (2026-06-28), Azad Engineering's WACC % is 12.84%. Azad Engineering's ROC % is 7.23% (calculated using TTM income statement data).
Azad Engineering earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Azad Engineering (NSE:AZAD) 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, Azad Engineering's WACC % is 12.84%. Azad Engineering's ROC % is 7.23% (calculated using TTM income statement data).
Azad Engineering 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.
Azad Engineering ROC % Related Terms
Azad Engineering ROC % Historical Data
* Premium members only.
The historical data trend for Azad Engineering'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.
Azad Engineering (NSE:AZAD) has a ROC % of 6.65% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Azad Engineering and its competitors.
Is Azad Engineering's ROC % too high?
Azad Engineering's current ROC % is 6.65%. The Industrial Products industry median ROC % is 5.22. Azad Engineering's value of 6.65% is 27.5% above this industry median. Overall, Azad Engineering has a GF Score™ of 45/100, reflecting its overall financial health beyond just this single metric.
How does Azad Engineering's ROC % compare to GEV and ETN?
Azad Engineering's ROC % of 6.65% can be compared against companies in the Industrial Products industry. The industry median ROC % is 5.22. Azad Engineering's value of 6.65% is 27.5% 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 5.22, based on 3,034 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. Azad Engineering's current ROC % of 6.65% is 27.5% 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 Azad Engineering and its competitors. For the Industrial Products industry, the median ROC % is 5.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Azad Engineering's current ROC % is 6.65%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Azad Engineering stock overvalued right now?
Azad Engineering (NSE:AZAD) has a current ROC % of 6.65%. The current ROC % is 6.65% and 27.5% above the Industrial Products industry median of 5.22. Azad Engineering's overall GF Score™ is 45/100 with 5 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 Azad Engineering (NSE:AZAD), the current ROC % is 6.65% 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.
Azad Engineering Ltd is an Original Equipment Manufacturer (OEM) and national defence agencies across power generation, aerospace, defence, and oil & gas. It delivers complex, high-precision components with uncompromising reliability and has earned the trust of industry leaders, including GE Vernova, Mitsubishi Heavy Industries, Rolls-Royce, Honeywell Aerospace, Siemens Energy, Eaton, Baker Hughes, and others. The company's products include 3D rotating airfoil portions of turbine engines and other key products for combustion, hydraulics, flight-controls, propulsion, and actuation which power defence and civil aircrafts, spaceships, defence missiles, nuclear power, hydrogen, gas power, oil, and thermal power. Geographically, the group generates a majority of its revenue from outside India.
45GF Score
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