ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Bharat Electronics's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 26.46%.
As of today (2026-06-28), Bharat Electronics's WACC % is 15.34%. Bharat Electronics's ROC % is 18.51% (calculated using TTM income statement data).
Bharat Electronics 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.
Bharat Electronics (NSE:BEL) 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, Bharat Electronics's WACC % is 15.34%. Bharat Electronics's ROC % is 18.51% (calculated using TTM income statement data).
Bharat Electronics 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.
Bharat Electronics ROC % Related Terms
Bharat Electronics ROC % Historical Data
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The historical data trend for Bharat Electronics'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.
Bharat Electronics (NSE:BEL) has a ROC % of 26.46% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Bharat Electronics and its competitors.
Is Bharat Electronics' ROC % too high?
Bharat Electronics' current ROC % is 26.46%. The Aerospace & Defense industry median ROC % is 4.45. Bharat Electronics' value of 26.46% is 494.6% above this industry median. Overall, Bharat Electronics has a GF Score™ of 98/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Bharat Electronics' ROC % compare to GE and RTX?
Bharat Electronics' ROC % of 26.46% can be compared against companies in the Aerospace & Defense industry. The industry median ROC % is 4.45. Bharat Electronics' value of 26.46% is 494.6% 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 Aerospace & Defense company?
The median ROC % among Aerospace & Defense companies is 4.45, based on 351 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. Bharat Electronics's current ROC % of 26.46% is 494.6% 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 Bharat Electronics and its competitors. For the Aerospace & Defense industry, the median ROC % is 4.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bharat Electronics's current ROC % is 26.46%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bharat Electronics stock overvalued right now?
Based on GuruFocus' analysis, Bharat Electronics (NSE:BEL) is currently considered Fairly Valued. The stock's GF Value™ is ₹394.67, compared to a current price of ₹407.20 — trading 3.2% above its estimated fair value. The current ROC % is 26.46% and 494.6% above the Aerospace & Defense industry median of 4.45. Bharat Electronics' overall GF Score™ is 98/100. 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 Bharat Electronics (NSE:BEL), the current ROC % is 26.46% 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 Bharat Electronics (NSE:BEL) Overvalued in 2026?
Based on GuruFocus' analysis, Bharat Electronics stock appears to be overvalued.
The current stock price of ₹407.20 is trading 3.2% above its estimated GF Value™ of ₹394.67.
GuruFocus considers Bharat Electronics to be Fairly Valued.
Key valuation signals for NSE:BEL:
ROC %: 26.46%
GF Value™: ₹394.67 vs. price of ₹407.20 (3.2% above fair value)
Industry Position: 494.6% above the Aerospace & Defense median
No single metric tells the full story. See the NSE:BEL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bharat Electronics Ltd is an aerospace and defense company predominantly owned by the Indian government. It manufactures a wide range of specialized electronics and equipment for defense and civilian use. Its investments are made in research and development to meet the ever-changing needs of customers and to test products in its pipeline. Its product portfolio includes unmanned systems, land-based radars, batteries, weapon systems, fuzes, simulators, and jammers, among others. It also provides cybersecurity and software products. A majority of the company's revenue is derived from the defense sector. Geographically, the company's key revenue is derived from India, and it also has international customers from countries like the United Kingdom, Israel, and others.
98GF Score
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