ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Dredging of India's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 15.83%.
As of today (2026-07-01), Dredging of India's WACC % is 14.22%. Dredging of India's ROC % is 2.53% (calculated using TTM income statement data).
Dredging of India earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Dredging of India (NSE:DREDGECORP) 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, Dredging of India's WACC % is 14.22%. Dredging of India's ROC % is 2.53% (calculated using TTM income statement data).
Dredging of India 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.
Dredging of India ROC % Related Terms
Dredging of India ROC % Historical Data
* Premium members only.
The historical data trend for Dredging of 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.
Dredging of India (NSE:DREDGECORP) has a ROC % of 15.83% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Dredging of India and its competitors.
Is Dredging of India's ROC % too high?
Dredging of India's current ROC % is 15.83%. The Construction industry median ROC % is 4.66. Dredging of India's value of 15.83% is 239.7% above this industry median. Overall, Dredging of India has a GF Score™ of 62/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Dredging of India's ROC % compare to PWR and FIX?
Dredging of India's ROC % of 15.83% can be compared against companies in the Construction industry. The industry median ROC % is 4.66. Dredging of India's value of 15.83% is 239.7% 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 Construction company?
The median ROC % among Construction companies is 4.66, based on 1,750 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. Dredging of India's current ROC % of 15.83% is 239.7% 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 Dredging of India and its competitors. For the Construction industry, the median ROC % is 4.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dredging of India's current ROC % is 15.83%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dredging of India stock overvalued right now?
Based on GuruFocus' analysis, Dredging of India (NSE:DREDGECORP) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹869.55, compared to a current price of ₹1,097.00 — trading 26.2% above its estimated fair value. The current ROC % is 15.83% and 239.7% above the Construction industry median of 4.66. Dredging of India's overall GF Score™ is 62/100 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 Dredging of India (NSE:DREDGECORP), the current ROC % is 15.83% 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 Dredging of India (NSE:DREDGECORP) Overvalued in 2026?
Based on GuruFocus' analysis, Dredging of India stock appears to be overvalued.
The current stock price of ₹1,097.00 is trading 26.2% above its estimated GF Value™ of ₹869.55.
GuruFocus considers Dredging of India to be Modestly Overvalued.
Key valuation signals for NSE:DREDGECORP:
ROC %: 15.83%
GF Value™: ₹869.55 vs. price of ₹1,097.00 (26.2% above fair value)
Industry Position: 239.7% above the Construction median
No single metric tells the full story. See the NSE:DREDGECORP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dredging Corp of India Ltd provides integrated dredging and related marine services for ports, maritime trade, beach nourishment, reclamation, and inland dredging majorly across India. The company operates a fleet of dredgers to deepen and maintain sea coasts, river sides, canals, and ports, supporting expanding port operations driven by government initiatives such as the Sagarmala Programme. It also pursues business opportunities in overseas markets including the Middle East, Southeast Asia, and South Asia. Revenue is generated through contracts with majority ports and maritime organizations, as well as emerging industrial and infrastructure projects requiring dredging services.
62GF 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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