ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Magson Retail and Distribution's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 3.57%.
As of today (2026-06-28), Magson Retail and Distribution's WACC % is 12.58%. Magson Retail and Distribution's ROC % is 0.42% (calculated using TTM income statement data).
Magson Retail and Distribution earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Magson Retail and Distribution (NSE:MAGSON) 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, Magson Retail and Distribution's WACC % is 12.58%. Magson Retail and Distribution's ROC % is 0.42% (calculated using TTM income statement data).
Magson Retail and Distribution 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.
Magson Retail and Distribution ROC % Related Terms
Magson Retail and Distribution ROC % Historical Data
* 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 two times the semi-annual (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.
Magson Retail and Distribution (NSE:MAGSON) has a ROC % of 3.57% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Magson Retail and Distribution and its competitors.
Is Magson Retail and Distribution's ROC % too high?
Magson Retail and Distribution's current ROC % is 3.57%. The Retail - Defensive industry median ROC % is 5.71. Magson Retail and Distribution's value of 3.57% is 37.5% below this industry median. Overall, Magson Retail and Distribution has a GF Score™ of 44/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Magson Retail and Distribution's ROC % compare to KR?
Magson Retail and Distribution's ROC % of 3.57% can be compared against companies in the Retail - Defensive industry. The industry median ROC % is 5.71. Magson Retail and Distribution's value of 3.57% is 37.5% below 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 Retail - Defensive company?
The median ROC % among Retail - Defensive companies is 5.71, based on 307 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. Magson Retail and Distribution's current ROC % of 3.57% is 37.5% below 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 Magson Retail and Distribution and its competitors. For the Retail - Defensive industry, the median ROC % is 5.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Magson Retail and Distribution's current ROC % is 3.57%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Magson Retail and Distribution stock overvalued right now?
Based on GuruFocus' analysis, Magson Retail and Distribution (NSE:MAGSON) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹91.09, compared to a current price of ₹175.00 — trading 92.1% above its estimated fair value. The current ROC % is 3.57% and 37.5% below the Retail - Defensive industry median of 5.71. Magson Retail and Distribution's overall GF Score™ is 44/100 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 Magson Retail and Distribution (NSE:MAGSON), the current ROC % is 3.57% 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 Magson Retail and Distribution (NSE:MAGSON) Overvalued in 2026?
Based on GuruFocus' analysis, Magson Retail and Distribution stock appears to be overvalued.
The current stock price of ₹175.00 is trading 92.1% above its estimated GF Value™ of ₹91.09.
GuruFocus considers Magson Retail and Distribution to be Significantly Overvalued.
Key valuation signals for NSE:MAGSON:
ROC %: 3.57%
GF Value™: ₹91.09 vs. price of ₹175.00 (92.1% above fair value)
Industry Position: 37.5% below the Retail - Defensive median
No single metric tells the full story. See the NSE:MAGSON stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Magson Retail and Distribution Business Description
Magson Retail and Distribution Ltd is engaged in the retail and Distribution business of gourmet, frozen food, and specialty foods. The company operates retail stores through and own stores, jointly owned stores, and a franchise model under its brand name 'MagSon'. In addition, the company has a separate chocolate store that is operated under the brand name 'My Chocolate World'. . The brands running under the Company's name are, Goan Bakery, Nastabazar and My Chocolate World.
44GF Score
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