ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Drone Destination's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 3.14%.
As of today (2026-06-27), Drone Destination's WACC % is 12.30%. Drone Destination's ROC % is 3.14% (calculated using TTM income statement data).
Drone Destination earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Drone Destination (NSE:DRONE) 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, Drone Destination's WACC % is 12.30%. Drone Destination's ROC % is 3.14% (calculated using TTM income statement data).
Drone Destination 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.
Drone Destination ROC % Related Terms
Drone Destination ROC % Historical Data
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The historical data trend for Drone Destination'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 one times the annual (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.
Drone Destination (NSE:DRONE) has a ROC % of 3.14% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Drone Destination and its competitors.
Is Drone Destination's ROC % too high?
Drone Destination's current ROC % is 3.14%. The Education industry median ROC % is 5.00. Drone Destination's value of 3.14% is 37.2% below this industry median. Overall, Drone Destination has a GF Score™ of 54/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Drone Destination's ROC % compare to EDU and TAL?
Drone Destination's ROC % of 3.14% can be compared against companies in the Education industry. The industry median ROC % is 5.00. Drone Destination's value of 3.14% is 37.2% below 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 an Education company?
The median ROC % among Education companies is 5.00, based on 261 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. Drone Destination's current ROC % of 3.14% is 37.2% below 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 Drone Destination and its competitors. For the Education industry, the median ROC % is 5.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Drone Destination's current ROC % is 3.14%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Drone Destination stock overvalued right now?
Based on GuruFocus' analysis, Drone Destination (NSE:DRONE) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹191.20, compared to a current price of ₹42.00 — trading 78% below its estimated fair value. The current ROC % is 3.14% and 37.2% below the Education industry median of 5.00. Drone Destination's overall GF Score™ is 54/100 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 Drone Destination (NSE:DRONE), the current ROC % is 3.14% 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 Drone Destination (NSE:DRONE) Overvalued in 2026?
Based on GuruFocus' analysis, Drone Destination stock appears to be undervalued.
The current stock price of ₹42.00 is trading 78% below its estimated GF Value™ of ₹191.20.
GuruFocus considers Drone Destination to be Significantly Undervalued.
Key valuation signals for NSE:DRONE:
ROC %: 3.14%
GF Value™: ₹191.20 vs. price of ₹42.00 (78% below fair value)
Industry Position: 37.2% below the Education median
No single metric tells the full story. See the NSE:DRONE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AddressOffice. No 005B & 006, Ground Floor, NSIC Business Park, Software Technology Park, FB-05, Okhla Industrial Estate, Okhla Phase-III, South Delhi, New Delhi, IND, 110020
Drone Destination Ltd is a DGCA-authorized Remote Pilot Training Organization that has developed an integrated drone eco-system built around drone manufacturing, certified training, services, and renting a drone. The company operates a massive network of DGCA-certified Drone Pilot Training Programs. The company currently operates Drone Hubs at locations such as Gurugram, Dharamshala, Chandigarh, Gwalior, Ahmedabad, Bangalore, Coimbatore, Madurai, and IFFCO Phulpur.
54GF Score
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