ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Kandarp Digi Smart BPO's annualized return on capital (ROC %) for the quarter that ended in Mar. 2025 was 8.42%.
As of today (2026-06-26), Kandarp Digi Smart BPO's WACC % is 11.86%. Kandarp Digi Smart BPO's ROC % is 8.42% (calculated using TTM income statement data).
Kandarp Digi Smart BPO earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, Kandarp Digi Smart BPO's WACC % is 11.86%. Kandarp Digi Smart BPO's ROC % is 8.42% (calculated using TTM income statement data).
Kandarp Digi Smart BPO 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 one times the annual (Mar. 2025) 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.
Kandarp Digi Smart BPO (NSE:KANDARP) has a ROC % of 8.42% as of Mar. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Kandarp Digi Smart BPO and its competitors.
Is Kandarp Digi Smart BPO's ROC % too high?
Kandarp Digi Smart BPO's current ROC % is 8.42%. The Business Services industry median ROC % is 5.93. Kandarp Digi Smart BPO's value of 8.42% is 42% above this industry median. Overall, Kandarp Digi Smart BPO has a GF Score™ of 47/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kandarp Digi Smart BPO's ROC % compare to CTAS and CPRT?
Kandarp Digi Smart BPO's ROC % of 8.42% can be compared against companies in the Business Services industry. The industry median ROC % is 5.93. Kandarp Digi Smart BPO's value of 8.42% is 42% 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 Business Services company?
The median ROC % among Business Services companies is 5.93, based on 1,075 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. Kandarp Digi Smart BPO's current ROC % of 8.42% is 42% 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 Kandarp Digi Smart BPO and its competitors. For the Business Services industry, the median ROC % is 5.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kandarp Digi Smart BPO's current ROC % is 8.42%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kandarp Digi Smart BPO stock overvalued right now?
Based on GuruFocus' analysis, Kandarp Digi Smart BPO (NSE:KANDARP) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹48.06, compared to a current price of ₹100.55 — trading 109.2% above its estimated fair value. The current ROC % is 8.42% and 42% above the Business Services industry median of 5.93. Kandarp Digi Smart BPO's overall GF Score™ is 47/100 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 Kandarp Digi Smart BPO (NSE:KANDARP), the current ROC % is 8.42% as of Mar. 2025. 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 Kandarp Digi Smart BPO (NSE:KANDARP) Overvalued in 2026?
Based on GuruFocus' analysis, Kandarp Digi Smart BPO stock appears to be overvalued.
The current stock price of ₹100.55 is trading 109.2% above its estimated GF Value™ of ₹48.06.
GuruFocus considers Kandarp Digi Smart BPO to be Significantly Overvalued.
Key valuation signals for NSE:KANDARP:
ROC %: 8.42%
GF Value™: ₹48.06 vs. price of ₹100.55 (109.2% above fair value)
Industry Position: 42% above the Business Services median
No single metric tells the full story. See the NSE:KANDARP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kandarp Digi Smart BPO Ltd is engaged in BPO services specializing in the area of support services solutions. The company provides a wide range of support services such as Call Centre, Contact Point Verifications, Site Visits, Document check/Pickup, E-KYC, Skip Tracing, Employee Back Check, Staffing Solutions, Payroll Management, Payment Collections (soft), AMC Booking Services and others to its clients and specializes in providing End to End solutions to customers/clients. It serves various Banks & NBFCs, Insurance Companies, Other Corporates, Small offices & shops, and Households.
47GF Score
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