Kody Technolab (NSE:KODYTECH) ROC %: 9.71% (As of Sep. 2025)


NSE:KODYTECH Kody Technolab Ltd NSE:KODYTECH
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What is Kody Technolab ROC %?

Kody Technolab NSE:KODYTECH -6.04% 20 ROC % is 9.71% as of Sep. 2025. GuruFocus rates NSE:KODYTECH with a GF Score™ of 20/100. The stock has 8 warning signs investors should review.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Kody Technolab's annualized return on capital (ROC %) for the quarter that ended in Sep. 2025 was 9.71%.

As of today (2026-06-29), Kody Technolab's WACC % is 12.96%. Kody Technolab's ROC % is 4.85% (calculated using TTM income statement data). Kody Technolab earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Kody Technolab  (NSE:KODYTECH) 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, Kody Technolab's WACC % is 12.96%. Kody Technolab's ROC % is 4.85% (calculated using TTM income statement data). Kody Technolab 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.

Kody Technolab ROC % Related Terms

Kody Technolab ROC % Historical Data

* Premium members only.

The historical data trend for Kody Technolab'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.

Kody Technolab ROC % Chart

Kody Technolab Annual Data
Trend Mar21 Mar22 Mar23 Mar24 Mar25
ROC %
-10.09 47.12 38.48 19.93 29.40

Kody Technolab Semi-Annual Data
Mar21 Mar22 Sep22 Mar23 Sep23 Mar24 Mar25 Sep25
ROC % Get a 7-Day Free Trial 76.28 10.36 32.24 0.00 9.71
NSE:KODYTECH
20GF Score
Kody Technolab Ltd NSE:KODYTECH
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Kody Technolab ROC % Calculation

Kody Technolab's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2025 is calculated as:

ROC % (A: Mar. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Mar. 2024 ) + Invested Capital (A: Mar. 2025 ))/ count )
=262.35 * ( 1 - 26.67% )/( (338.913 + 969.692)/ 2 )
=192.381255/654.3025
=29.40 %

where

Invested Capital(A: Mar. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=427.182 - 6.908 - ( 81.361 - max(0, 42.705 - 301.899+81.361))
=338.913

Invested Capital(A: Mar. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1117.808 - 106.139 - ( 41.977 - max(0, 326.736 - 489.984+41.977))
=969.692

Kody Technolab's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2025 is calculated as:

ROC % (Q: Sep. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2025 ) + Invested Capital (Q: Sep. 2025 ))/ count )
=159.184 * ( 1 - 33.49% )/( (969.692 + 1211.77)/ 2 )
=105.8732784/1090.731
=9.71 %

where

Invested Capital(Q: Mar. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1117.808 - 106.139 - ( 41.977 - max(0, 326.736 - 489.984+41.977))
=969.692

Invested Capital(Q: Sep. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=1325.821 - 112.987 - ( 1.064 - max(0, 266.8 - 742.776+1.064))
=1211.77

Note: The Operating Income data used here is two times the semi-annual (Sep. 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.

Frequently Asked Questions Learn more about ROC % →
What does a ROC % of 9.71% mean?
Kody Technolab (NSE:KODYTECH) has a ROC % of 9.71% as of Sep. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Kody Technolab and its competitors.
Is Kody Technolab's ROC % too high?
Kody Technolab's current ROC % is 9.71%. The Software industry median ROC % is 3.04. Kody Technolab's value of 9.71% is 219.9% above this industry median. Overall, Kody Technolab has a GF Score™ of 20/100, reflecting its overall financial health beyond just this single metric.
How does Kody Technolab's ROC % compare to IBM and ACN?
Kody Technolab's ROC % of 9.71% can be compared against companies in the Software industry. The industry median ROC % is 3.04. Kody Technolab's value of 9.71% is 219.9% 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 Software company?
The median ROC % among Software companies is 3.04, based on 2,826 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. Kody Technolab's current ROC % of 9.71% is 219.9% 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 Kody Technolab and its competitors. For the Software industry, the median ROC % is 3.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kody Technolab's current ROC % is 9.71%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kody Technolab stock overvalued right now?
Kody Technolab (NSE:KODYTECH) has a current ROC % of 9.71%. The current ROC % is 9.71% and 219.9% above the Software industry median of 3.04. Kody Technolab's overall GF Score™ is 20/100 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 Kody Technolab (NSE:KODYTECH), the current ROC % is 9.71% as of Sep. 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.

Kody Technolab Business Description

Address Block-J, Safal Monde S.G Highway, Near Iscon Mall, Near Rajpathclub, 2nd Floor, Bodakdev, Ahmedabad, GJ, IND, 380054
Kody Technolab Ltd is a company in the business of software development services to a diverse set of industries. It is a full-stack development company that provides creative and cutting-edge digital solutions to clients. It specializes in helping businesses undergo Digital Transformation by leveraging the latest technologies and trends. The company offers a wide range of services that include custom development, AI Consultation & Implementation, IOT Services, and IT consulting services.
20GF 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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