ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Neelam Linens and Garments (India)'s annualized return on capital (ROC %) for the quarter that ended in Mar. 2025 was 7.07%.
As of today (2026-06-29), Neelam Linens and Garments (India)'s WACC % is 7.58%. Neelam Linens and Garments (India)'s ROC % is 7.07% (calculated using TTM income statement data).
Neelam Linens and Garments (India) earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Neelam Linens and Garments (India) (NSE:NEELAM) 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, Neelam Linens and Garments (India)'s WACC % is 7.58%. Neelam Linens and Garments (India)'s ROC % is 7.07% (calculated using TTM income statement data).
Neelam Linens and Garments (India) 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.
Neelam Linens and Garments (India) ROC % Related Terms
Neelam Linens and Garments (India) 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.
Neelam Linens and Garments (India) ROC % Chart
Neelam Linens and Garments (India) Annual Data
Trend
Mar21
Mar22
Mar23
Mar24
Mar25
ROC %
1.50
5.58
5.66
4.58
7.07
Neelam Linens and Garments (India) Semi-Annual Data
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.
Neelam Linens and Garments (India) (NSE:NEELAM) has a ROC % of 7.07% as of Mar. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Neelam Linens and Garments (India) and its competitors.
Is Neelam Linens and Garments (India)'s ROC % too high?
Neelam Linens and Garments (India)'s current ROC % is 7.07%. The Furnishings, Fixtures & Appliances industry median ROC % is 3.45. Neelam Linens and Garments (India)'s value of 7.07% is 104.9% above this industry median. Overall, Neelam Linens and Garments (India) has a GF Score™ of 10/100, reflecting its overall financial health beyond just this single metric.
How does Neelam Linens and Garments (India)'s ROC % compare to SN and SGI?
Neelam Linens and Garments (India)'s ROC % of 7.07% can be compared against companies in the Furnishings, Fixtures & Appliances industry. The industry median ROC % is 3.45. Neelam Linens and Garments (India)'s value of 7.07% is 104.9% 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 Furnishings, Fixtures & Appliances company?
The median ROC % among Furnishings, Fixtures & Appliances companies is 3.45, based on 427 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. Neelam Linens and Garments (India)'s current ROC % of 7.07% is 104.9% 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 Neelam Linens and Garments (India) and its competitors. For the Furnishings, Fixtures & Appliances industry, the median ROC % is 3.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Neelam Linens and Garments (India)'s current ROC % is 7.07%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Neelam Linens and Garments (India) stock overvalued right now?
Neelam Linens and Garments (India) (NSE:NEELAM) has a current ROC % of 7.07%. The current ROC % is 7.07% and 104.9% above the Furnishings, Fixtures & Appliances industry median of 3.45. Neelam Linens and Garments (India)'s overall GF Score™ is 10/100 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 Neelam Linens and Garments (India) (NSE:NEELAM), the current ROC % is 7.07% 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.
Neelam Linens and Garments (India) Business Description
Neelam Linens and Garments (India) Ltd operates as a soft home furnishing company based out of Maharashtra, India, extending its services to various clientele, including USA, Australia and Far East. The company specializes in the processing, finishing and supplying of bedsheets, Pillow cover, Duvet Cover, Towels, Rugs, Doher, Shirts & Garments predominantly for discounted retail outlets. It sources surplus or slightly imperfect fabric from the domestic market, applying value-added services such as designing, digital printing, dyeing, stitching, embroidery, and other enhancements. Its segment includes the business of Manufacturing of Bedsheets, Shirts and in the trading of Licences. The manufacturing of Bedsheets, Shirts segment derives majority of the revenue.
10GF Score
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