ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Havells India's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 22.48%.
As of today (2026-06-29), Havells India's WACC % is 13.17%. Havells India's ROC % is 16.57% (calculated using TTM income statement data).
Havells 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.
Havells India (NSE:HAVELLS) 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, Havells India's WACC % is 13.17%. Havells India's ROC % is 16.57% (calculated using TTM income statement data).
Havells 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.
Havells India ROC % Related Terms
Havells India ROC % Historical Data
* Premium members only.
The historical data trend for Havells 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.
Havells India (NSE:HAVELLS) has a ROC % of 22.48% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Havells India and its competitors.
Is Havells India's ROC % too high?
Havells India's current ROC % is 22.48%. The Industrial Products industry median ROC % is 5.21. Havells India's value of 22.48% is 331.5% above this industry median. Overall, Havells India has a GF Score™ of 93/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Havells India's ROC % compare to VRT and BE?
Havells India's ROC % of 22.48% can be compared against companies in the Industrial Products industry. The industry median ROC % is 5.21. Havells India's value of 22.48% is 331.5% 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 an Industrial Products company?
The median ROC % among Industrial Products companies is 5.21, based on 3,033 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. Havells India's current ROC % of 22.48% is 331.5% 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 Havells India and its competitors. For the Industrial Products industry, the median ROC % is 5.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Havells India's current ROC % is 22.48%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Havells India stock overvalued right now?
Based on GuruFocus' analysis, Havells India (NSE:HAVELLS) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹1,765.24, compared to a current price of ₹1,178.30 — trading 33.2% below its estimated fair value. The current ROC % is 22.48% and 331.5% above the Industrial Products industry median of 5.21. Havells India's overall GF Score™ is 93/100 with 3 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 Havells India (NSE:HAVELLS), the current ROC % is 22.48% 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 Havells India (NSE:HAVELLS) Overvalued in 2026?
Based on GuruFocus' analysis, Havells India stock appears to be undervalued.
The current stock price of ₹1,178.30 is trading 33.2% below its estimated GF Value™ of ₹1,765.24.
GuruFocus considers Havells India to be Significantly Undervalued.
Key valuation signals for NSE:HAVELLS:
ROC %: 22.48%
GF Value™: ₹1,765.24 vs. price of ₹1,178.30 (33.2% below fair value)
Industry Position: 331.5% above the Industrial Products median
No single metric tells the full story. See the NSE:HAVELLS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Havells India Ltd manufactures and distributes electrical equipment for consumer and industrial applications. Its product portfolio includes fans, appliances, switches, lighting, switch gears, circuit breakers, water heaters, air purifiers, flexible cables, air coolers, monoblock and submersible pumps, personal grooming products, motors, and reactive power solutions. The firm has seven manufacturing facilities, all of which are in India. The company operates in multiple segments: Switchgear (domestic and industrial), which derives maximum revenue, Cables (domestic and industrial underground), Lighting and Fixtures (LED lamps), Electrical Consumer Durables (fans, water heaters), Lloyd Consumer products (air conditioners, televisions), and Others (industrial motors, water purifiers).
93GF 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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