ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Kalyani Steels's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 13.52%.
As of today (2026-06-26), Kalyani Steels's WACC % is 16.20%. Kalyani Steels's ROC % is 12.32% (calculated using TTM income statement data).
Kalyani Steels earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Kalyani Steels (NSE:KSL) 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, Kalyani Steels's WACC % is 16.20%. Kalyani Steels's ROC % is 12.32% (calculated using TTM income statement data).
Kalyani Steels 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.
Kalyani Steels ROC % Related Terms
Kalyani Steels ROC % Historical Data
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The historical data trend for Kalyani Steels'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.
Kalyani Steels (NSE:KSL) has a ROC % of 13.52% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Kalyani Steels and its competitors.
Is Kalyani Steels' ROC % too high?
Kalyani Steels' current ROC % is 13.52%. The Steel industry median ROC % is 2.63. Kalyani Steels' value of 13.52% is 415% above this industry median. Overall, Kalyani Steels has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Kalyani Steels' ROC % compare to NUE and STLD?
Kalyani Steels' ROC % of 13.52% can be compared against companies in the Steel industry. The industry median ROC % is 2.63. Kalyani Steels' value of 13.52% is 415% 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 Steel company?
The median ROC % among Steel companies is 2.63, based on 624 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. Kalyani Steels's current ROC % of 13.52% is 415% 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 Kalyani Steels and its competitors. For the Steel industry, the median ROC % is 2.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kalyani Steels's current ROC % is 13.52%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kalyani Steels stock overvalued right now?
Based on GuruFocus' analysis, Kalyani Steels (NSE:KSL) is currently considered Fairly Valued. The stock's GF Value™ is ₹760.48, compared to a current price of ₹818.70 — trading 7.7% above its estimated fair value. The current ROC % is 13.52% and 415% above the Steel industry median of 2.63. Kalyani Steels' overall GF Score™ is 78/100 with 5 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 Kalyani Steels (NSE:KSL), the current ROC % is 13.52% 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 Kalyani Steels (NSE:KSL) Overvalued in 2026?
Based on GuruFocus' analysis, Kalyani Steels stock appears to be overvalued.
The current stock price of ₹818.70 is trading 7.7% above its estimated GF Value™ of ₹760.48.
GuruFocus considers Kalyani Steels to be Fairly Valued.
Key valuation signals for NSE:KSL:
ROC %: 13.52%
GF Value™: ₹760.48 vs. price of ₹818.70 (7.7% above fair value)
No single metric tells the full story. See the NSE:KSL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kalyani Steels Ltd manufactures forging and engineering quality carbon and alloy steel. Its product portfolio consists of carbon steel, carbon-manganese steel, chrome steel, chrome-manganese steel, chrome-nickel steel, chrome-moly steel, low carbon chrome-nickel-moly steel, medium carbon cr-ni-mo steel and bearing steel. The company's products are used in automotive forging, construction equipment, bearings, seamless tubes, and aluminum smelting. The majority of the revenue is generated by the sale of Rolled Products, As Cast Blooms and Pig Iron. These operating segment have been aggregated into one reportable business segment which is Forging and Engineering quality carbon and alloy steels.
78GF Score
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