ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Indostar Capital Finance's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 3.86%.
As of today (2026-06-30), Indostar Capital Finance's WACC % is 5.89%. Indostar Capital Finance's ROC % is 0.96% (calculated using TTM income statement data).
Indostar Capital Finance earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Indostar Capital Finance (NSE:INDOSTAR) 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, Indostar Capital Finance's WACC % is 5.89%. Indostar Capital Finance's ROC % is 0.96% (calculated using TTM income statement data).
Indostar Capital Finance 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 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.
Indostar Capital Finance (NSE:INDOSTAR) has a ROC % of 3.86% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Indostar Capital Finance and its competitors.
Is Indostar Capital Finance's ROC % too high?
Indostar Capital Finance's current ROC % is 3.86%. The Credit Services industry median ROC % is 1.98. Indostar Capital Finance's value of 3.86% is 94.9% above this industry median. Overall, Indostar Capital Finance has a GF Score™ of 65/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Indostar Capital Finance's ROC % compare to V and MA?
Indostar Capital Finance's ROC % of 3.86% can be compared against companies in the Credit Services industry. The industry median ROC % is 1.98. Indostar Capital Finance's value of 3.86% is 94.9% 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 Credit Services company?
The median ROC % among Credit Services companies is 1.98, based on 417 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. Indostar Capital Finance's current ROC % of 3.86% is 94.9% 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 Indostar Capital Finance and its competitors. For the Credit Services industry, the median ROC % is 1.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Indostar Capital Finance's current ROC % is 3.86%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Indostar Capital Finance stock overvalued right now?
Based on GuruFocus' analysis, Indostar Capital Finance (NSE:INDOSTAR) is currently considered Fairly Valued. The stock's GF Value™ is ₹230.91, compared to a current price of ₹254.96 — trading 10.4% above its estimated fair value. The current ROC % is 3.86% and 94.9% above the Credit Services industry median of 1.98. Indostar Capital Finance's overall GF Score™ is 65/100 with 8 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 Indostar Capital Finance (NSE:INDOSTAR), the current ROC % is 3.86% 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 Indostar Capital Finance (NSE:INDOSTAR) Overvalued in 2026?
Based on GuruFocus' analysis, Indostar Capital Finance stock appears to be overvalued.
The current stock price of ₹254.96 is trading 10.4% above its estimated GF Value™ of ₹230.91.
GuruFocus considers Indostar Capital Finance to be Fairly Valued.
Key valuation signals for NSE:INDOSTAR:
ROC %: 3.86%
GF Value™: ₹230.91 vs. price of ₹254.96 (10.4% above fair value)
Industry Position: 94.9% above the Credit Services median
No single metric tells the full story. See the NSE:INDOSTAR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Indostar Capital Finance Ltd is a non-banking finance company. It is engaged in the business of lending to used and new commercial vehicles, corporates, SME businesses, and Micro businesses. Through its subsidiaries, it also offers investment advisory, housing finance, and asset management services. The group operates in the following segments: Large Corporate, SME, Commercial vehicle, and Housing Finance. The majority of its revenue is generated from the Commercial vehicle segment, which mainly consists of financing for used and new vehicles. Geographically, all of its operations are carried out within India.
65GF Score
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