ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. DRC Systems India's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 14.47%.
As of today (2026-07-02), DRC Systems India's WACC % is 13.71%. DRC Systems India's ROC % is 16.28% (calculated using TTM income statement data).
DRC Systems 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.
DRC Systems India (NSE:DRCSYSTEMS) 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, DRC Systems India's WACC % is 13.71%. DRC Systems India's ROC % is 16.28% (calculated using TTM income statement data).
DRC Systems 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.
DRC Systems India ROC % Related Terms
DRC Systems India ROC % Historical Data
* Premium members only.
The historical data trend for DRC Systems India'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.
DRC Systems India (NSE:DRCSYSTEMS) has a ROC % of 14.47% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on DRC Systems India and its competitors.
Is DRC Systems India's ROC % too high?
DRC Systems India's current ROC % is 14.47%. The Software industry median ROC % is 3.05. DRC Systems India's value of 14.47% is 375.2% above this industry median. Overall, DRC Systems India has a GF Score™ of 77/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does DRC Systems India's ROC % compare to IBM and ACN?
DRC Systems India's ROC % of 14.47% can be compared against companies in the Software industry. The industry median ROC % is 3.05. DRC Systems India's value of 14.47% is 375.2% 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 Software company?
The median ROC % among Software companies is 3.05, based on 2,828 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. DRC Systems India's current ROC % of 14.47% is 375.2% 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 DRC Systems India and its competitors. For the Software industry, the median ROC % is 3.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. DRC Systems India's current ROC % is 14.47%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is DRC Systems India stock overvalued right now?
Based on GuruFocus' analysis, DRC Systems India (NSE:DRCSYSTEMS) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹45.37, compared to a current price of ₹14.08 — trading 69% below its estimated fair value. The current ROC % is 14.47% and 375.2% above the Software industry median of 3.05. DRC Systems India's overall GF Score™ is 77/100 with 2 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 DRC Systems India (NSE:DRCSYSTEMS), the current ROC % is 14.47% 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 DRC Systems India (NSE:DRCSYSTEMS) Overvalued in 2026?
Based on GuruFocus' analysis, DRC Systems India stock appears to be undervalued.
The current stock price of ₹14.08 is trading 69% below its estimated GF Value™ of ₹45.37.
GuruFocus considers DRC Systems India to be Significantly Undervalued.
Key valuation signals for NSE:DRCSYSTEMS:
ROC %: 14.47%
GF Value™: ₹45.37 vs. price of ₹14.08 (69% below fair value)
Industry Position: 375.2% above the Software median
No single metric tells the full story. See the NSE:DRCSYSTEMS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
DRC Systems India Ltd is a service company engaged in providing information technology services including web and mobile app development, maintenance, testing, and related ancillary services. The company also offers a suite of software products such as Enterprise Resource Planning (ERP), University Management System, and Economic Zone Management system. Geographically, it generates revenue from India, United Arab Emirates (UAE), and other countries of which, its maximum revenue is derived from the United Arab Emirates (UAE).
77GF Score
Get the complete analysis for NSE:DRCSYSTEMS
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:DRCSYSTEMS has been successfully added to your 
