ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Creative Newtech's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 13.20%.
As of today (2026-06-28), Creative Newtech's WACC % is 15.00%. Creative Newtech's ROC % is 14.97% (calculated using TTM income statement data).
Creative Newtech earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Creative Newtech (NSE:CNL) 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, Creative Newtech's WACC % is 15.00%. Creative Newtech's ROC % is 14.97% (calculated using TTM income statement data).
Creative Newtech 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.
Creative Newtech ROC % Related Terms
Creative Newtech ROC % Historical Data
* Premium members only.
The historical data trend for Creative Newtech'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.
Creative Newtech (NSE:CNL) has a ROC % of 13.20% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Creative Newtech and its competitors.
Is Creative Newtech's ROC % too high?
Creative Newtech's current ROC % is 13.20%. The Hardware industry median ROC % is 4.09. Creative Newtech's value of 13.20% is 223.1% above this industry median. Overall, Creative Newtech has a GF Score™ of 95/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Creative Newtech's ROC % compare to SNX and ARW?
Creative Newtech's ROC % of 13.20% can be compared against companies in the Hardware industry. The industry median ROC % is 4.09. Creative Newtech's value of 13.20% is 223.1% 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 Hardware company?
The median ROC % among Hardware companies is 4.09, based on 2,448 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. Creative Newtech's current ROC % of 13.20% is 223.1% 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 Creative Newtech and its competitors. For the Hardware industry, the median ROC % is 4.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Creative Newtech's current ROC % is 13.20%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Creative Newtech stock overvalued right now?
Based on GuruFocus' analysis, Creative Newtech (NSE:CNL) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹956.93, compared to a current price of ₹731.60 — trading 23.5% below its estimated fair value. The current ROC % is 13.20% and 223.1% above the Hardware industry median of 4.09. Creative Newtech's overall GF Score™ is 95/100 with 6 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 Creative Newtech (NSE:CNL), the current ROC % is 13.20% 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 Creative Newtech (NSE:CNL) Overvalued in 2026?
Based on GuruFocus' analysis, Creative Newtech stock appears to be undervalued.
The current stock price of ₹731.60 is trading 23.5% below its estimated GF Value™ of ₹956.93.
GuruFocus considers Creative Newtech to be Modestly Undervalued.
Key valuation signals for NSE:CNL:
ROC %: 13.20%
GF Value™: ₹956.93 vs. price of ₹731.60 (23.5% below fair value)
Industry Position: 223.1% above the Hardware median
No single metric tells the full story. See the NSE:CNL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Creative Newtech Ltd is engaged in the business of distribution of IT products. The company's B2B e-commerce platform caters to various sub-distributors, retailers, and other customers, and serves as a one-stop-shop offering end-to-end solutions. Its operating segment includes Enterprise Business - EB; Fast Moving Social - Media Gadgets - FMSG; Fast Moving Electronics Goods - FMEG and Fast Moving Consumer Technology - FMCT. The company generates maximum revenue from the Enterprise Business (EB) segment which includes high-volume products tailored for enterprise clients. Notable brands in this segment include AOC, Philips, and others. Geographically, it caters to both the Indian and international markets and derives its key revenue from outside India.
95GF Score
Get the complete analysis for NSE:CNL
ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NSE:CNL has been successfully added to your 
