ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Central Depository Services (India)'s annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 18.60%.
As of today (2026-06-28), Central Depository Services (India)'s WACC % is 16.60%. Central Depository Services (India)'s ROC % is 25.31% (calculated using TTM income statement data).
Central Depository Services (India) 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.
Central Depository Services (India) (NSE:CDSL) 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, Central Depository Services (India)'s WACC % is 16.60%. Central Depository Services (India)'s ROC % is 25.31% (calculated using TTM income statement data).
Central Depository Services (India) 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.
Central Depository Services (India) ROC % Related Terms
Central Depository Services (India) 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.
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.
Central Depository Services (India) (NSE:CDSL) has a ROC % of 18.60% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Central Depository Services (India) and its competitors.
Is Central Depository Services (India)'s ROC % too high?
Central Depository Services (India)'s current ROC % is 18.60%. The Capital Markets industry median ROC % is 1.27. Central Depository Services (India)'s value of 18.60% is 1364.6% above this industry median. Overall, Central Depository Services (India) has a GF Score™ of 97/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Central Depository Services (India)'s ROC % compare to MS and GS?
Central Depository Services (India)'s ROC % of 18.60% can be compared against companies in the Capital Markets industry. The industry median ROC % is 1.27. Central Depository Services (India)'s value of 18.60% is 1364.6% 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 a Capital Markets company?
The median ROC % among Capital Markets companies is 1.27, based on 698 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. Central Depository Services (India)'s current ROC % of 18.60% is 1364.6% 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 Central Depository Services (India) and its competitors. For the Capital Markets industry, the median ROC % is 1.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Central Depository Services (India)'s current ROC % is 18.60%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Central Depository Services (India) stock overvalued right now?
Based on GuruFocus' analysis, Central Depository Services (India) (NSE:CDSL) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹1,628.53, compared to a current price of ₹1,317.00 — trading 19.1% below its estimated fair value. The current ROC % is 18.60% and 1364.6% above the Capital Markets industry median of 1.27. Central Depository Services (India)'s overall GF Score™ is 97/100 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 Central Depository Services (India) (NSE:CDSL), the current ROC % is 18.60% 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 Central Depository Services (India) (NSE:CDSL) Overvalued in 2026?
Based on GuruFocus' analysis, Central Depository Services (India) stock appears to be undervalued.
The current stock price of ₹1,317.00 is trading 19.1% below its estimated GF Value™ of ₹1,628.53.
GuruFocus considers Central Depository Services (India) to be Modestly Undervalued.
Key valuation signals for NSE:CDSL:
ROC %: 18.60%
GF Value™: ₹1,628.53 vs. price of ₹1,317.00 (19.1% below fair value)
Industry Position: 1364.6% above the Capital Markets median
No single metric tells the full story. See the NSE:CDSL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Central Depository Services (India) Business Description
Central Depository Services (India) Ltd is a securities depository in India. It offers dematerialization for a wide range of securities, including equity shares, preference shares, mutual fund units, debt instruments, and government securities. In addition, it is involved in centralized record keeping of KYC documents of investors, and providing repository services to policyholders to store their receipts and policies in electronic form. The group operates in three segments: Depository, Data Entry, and Storage and Repository. A majority of its revenue is generated from the Depository segment, which provides various services to investors, including dematerialization, rematerialization, holding, transfer, and pledge of securities in electronic form, as well as e-voting services to companies.
97GF Score
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