ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. CSL Finance's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 6.05%.
As of today (2026-06-28), CSL Finance's WACC % is 7.04%. CSL Finance's ROC % is 7.04% (calculated using TTM income statement data).
CSL Finance earns returns that do not match up to its cost of capital. It will destroy value as it grows.
CSL Finance (NSE:CSLFINANCE) 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, CSL Finance's WACC % is 7.04%. CSL Finance's ROC % is 7.04% (calculated using TTM income statement data).
CSL Finance 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.
CSL Finance ROC % Related Terms
CSL Finance ROC % Historical Data
* Premium members only.
The historical data trend for CSL Finance'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.
CSL Finance (NSE:CSLFINANCE) has a ROC % of 6.05% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on CSL Finance and its competitors.
Is CSL Finance's ROC % too high?
CSL Finance's current ROC % is 6.05%. The Credit Services industry median ROC % is 1.98. CSL Finance's value of 6.05% is 205.6% above this industry median. Overall, CSL Finance has a GF Score™ of 76/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does CSL Finance's ROC % compare to V and MA?
CSL Finance's ROC % of 6.05% can be compared against companies in the Credit Services industry. The industry median ROC % is 1.98. CSL Finance's value of 6.05% is 205.6% 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 Credit Services company?
The median ROC % among Credit Services companies is 1.98, based on 417 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. CSL Finance's current ROC % of 6.05% is 205.6% 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 CSL Finance and its competitors. For the Credit Services industry, the median ROC % is 1.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CSL Finance's current ROC % is 6.05%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CSL Finance stock overvalued right now?
Based on GuruFocus' analysis, CSL Finance (NSE:CSLFINANCE) is currently considered Possible Value Trap. The stock's GF Value™ is ₹441.78, compared to a current price of ₹225.97 — trading 48.9% below its estimated fair value. The current ROC % is 6.05% and 205.6% above the Credit Services industry median of 1.98. CSL Finance's overall GF Score™ is 76/100 with 7 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 CSL Finance (NSE:CSLFINANCE), the current ROC % is 6.05% 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 CSL Finance (NSE:CSLFINANCE) Overvalued in 2026?
Based on GuruFocus' analysis, CSL Finance stock appears to be undervalued.
The current stock price of ₹225.97 is trading 48.9% below its estimated GF Value™ of ₹441.78.
GuruFocus considers CSL Finance to be Possible Value Trap.
Key valuation signals for NSE:CSLFINANCE:
ROC %: 6.05%
GF Value™: ₹441.78 vs. price of ₹225.97 (48.9% below fair value)
Industry Position: 205.6% above the Credit Services median
No single metric tells the full story. See the NSE:CSLFINANCE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
CSL Finance Ltd operates as a non-banking financial institution. The business activity of the company is to offer secured and unsecured lending to small and medium-size business units to fulfil their financial needs. The company's business is classified into two broader segments of SME business and Wholesale business. SME business is mainly focused on micro and small business loans to various business entities, which is secured mostly against self-occupied Residential or Commercial properties. Wholesale business is focused on big ticket size loans for the working capital requirement of businesses. The primary revenue source of the company is interest income. The company operates within India.
76GF Score
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