ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Dhanuka Infra Realty's annualized return on capital (ROC %) for the quarter that ended in Mar. 2025 was 4.79%.
As of today (2026-06-27), Dhanuka Infra Realty's WACC % is 10.96%. Dhanuka Infra Realty's ROC % is 4.79% (calculated using TTM income statement data).
Dhanuka Infra Realty earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Dhanuka Infra Realty (NSE:DIRL) 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, Dhanuka Infra Realty's WACC % is 10.96%. Dhanuka Infra Realty's ROC % is 4.79% (calculated using TTM income statement data).
Dhanuka Infra Realty 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.
* 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 one times the annual (Mar. 2025) 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.
Dhanuka Infra Realty (NSE:DIRL) has a ROC % of 4.79% as of Mar. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Dhanuka Infra Realty and its competitors.
Is Dhanuka Infra Realty's ROC % too high?
Dhanuka Infra Realty's current ROC % is 4.79%. The Homebuilding & Construction industry median ROC % is 4.78. Dhanuka Infra Realty's value of 4.79% is 0.2% above this industry median. Overall, Dhanuka Infra Realty has a GF Score™ of 51/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Dhanuka Infra Realty's ROC % compare to DHI and PHM?
Dhanuka Infra Realty's ROC % of 4.79% can be compared against companies in the Homebuilding & Construction industry. The industry median ROC % is 4.78. Dhanuka Infra Realty's value of 4.79% is 0.2% 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 Homebuilding & Construction company?
The median ROC % among Homebuilding & Construction companies is 4.78, based on 95 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. Dhanuka Infra Realty's current ROC % of 4.79% is 0.2% 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 Dhanuka Infra Realty and its competitors. For the Homebuilding & Construction industry, the median ROC % is 4.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dhanuka Infra Realty's current ROC % is 4.79%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dhanuka Infra Realty stock overvalued right now?
Based on GuruFocus' analysis, Dhanuka Infra Realty (NSE:DIRL) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹16.65, compared to a current price of ₹11.75 — trading 29.4% below its estimated fair value. The current ROC % is 4.79% and 0.2% above the Homebuilding & Construction industry median of 4.78. Dhanuka Infra Realty's overall GF Score™ is 51/100 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 Dhanuka Infra Realty (NSE:DIRL), the current ROC % is 4.79% as of Mar. 2025. 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 Dhanuka Infra Realty (NSE:DIRL) Overvalued in 2026?
Based on GuruFocus' analysis, Dhanuka Infra Realty stock appears to be undervalued.
The current stock price of ₹11.75 is trading 29.4% below its estimated GF Value™ of ₹16.65.
GuruFocus considers Dhanuka Infra Realty to be Modestly Undervalued.
Key valuation signals for NSE:DIRL:
ROC %: 4.79%
GF Value™: ₹16.65 vs. price of ₹11.75 (29.4% below fair value)
Industry Position: 0.2% above the Homebuilding & Construction median
No single metric tells the full story. See the NSE:DIRL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dhanuka Infra Realty Ltd is a real estate developer focused on residential projects. It develops residential apartment complexes and townships along with commercial office buildings, retail spaces, and hospitality assets such as hotels and resorts. The company's projects include Sunshine Prime, Sunshine Kalyan, Sunshine Bhagat, Sunshine Krishna, Sunshine Vrindavan, and many more.
51GF Score
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ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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