ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. NGL Fine-Chem's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 11.44%.
As of today (2026-06-27), NGL Fine-Chem's WACC % is 11.43%. NGL Fine-Chem's ROC % is 10.99% (calculated using TTM income statement data).
NGL Fine-Chem earns returns that do not match up to its cost of capital. It will destroy value as it grows.
NGL Fine-Chem (NSE:NGLFINE) 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, NGL Fine-Chem's WACC % is 11.43%. NGL Fine-Chem's ROC % is 10.99% (calculated using TTM income statement data).
NGL Fine-Chem 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.
NGL Fine-Chem ROC % Related Terms
NGL Fine-Chem ROC % Historical Data
* Premium members only.
The historical data trend for NGL Fine-Chem'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.
NGL Fine-Chem (NSE:NGLFINE) has a ROC % of 11.44% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on NGL Fine-Chem and its competitors.
Is NGL Fine-Chem's ROC % too high?
NGL Fine-Chem's current ROC % is 11.44%. The Drug Manufacturers industry median ROC % is 4.44. NGL Fine-Chem's value of 11.44% is 157.7% above this industry median. Overall, NGL Fine-Chem has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does NGL Fine-Chem's ROC % compare to LLY and JNJ?
NGL Fine-Chem's ROC % of 11.44% can be compared against companies in the Drug Manufacturers industry. The industry median ROC % is 4.44. NGL Fine-Chem's value of 11.44% is 157.7% 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 Drug Manufacturers company?
The median ROC % among Drug Manufacturers companies is 4.44, based on 985 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. NGL Fine-Chem's current ROC % of 11.44% is 157.7% 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 NGL Fine-Chem and its competitors. For the Drug Manufacturers industry, the median ROC % is 4.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NGL Fine-Chem's current ROC % is 11.44%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NGL Fine-Chem stock overvalued right now?
Based on GuruFocus' analysis, NGL Fine-Chem (NSE:NGLFINE) is currently considered Fairly Valued. The stock's GF Value™ is ₹2,803.99, compared to a current price of ₹2,989.90 — trading 6.6% above its estimated fair value. The current ROC % is 11.44% and 157.7% above the Drug Manufacturers industry median of 4.44. NGL Fine-Chem's overall GF Score™ is 78/100 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 NGL Fine-Chem (NSE:NGLFINE), the current ROC % is 11.44% 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 NGL Fine-Chem (NSE:NGLFINE) Overvalued in 2026?
Based on GuruFocus' analysis, NGL Fine-Chem stock appears to be overvalued.
The current stock price of ₹2,989.90 is trading 6.6% above its estimated GF Value™ of ₹2,803.99.
GuruFocus considers NGL Fine-Chem to be Fairly Valued.
Key valuation signals for NSE:NGLFINE:
ROC %: 11.44%
GF Value™: ₹2,803.99 vs. price of ₹2,989.90 (6.6% above fair value)
Industry Position: 157.7% above the Drug Manufacturers median
No single metric tells the full story. See the NSE:NGLFINE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NGL Fine-Chem Ltd is an Indian company engaged in the pharmaceutical business. It is a manufacturer of pharmaceuticals and intermediates for use in veterinary and human health, catering to various companies to custom-manufacture pharmaceuticals. The company's product portfolio comprises animal health APIs such as homidium chloride, nitroxynil, clorsulon, decoquinate, fenbendazole, etc.; human health APIs such as nitazoxanide and atovaquone; drug intermediates and specialty chemicals; and finished dosage forms such as diminazene aceturate granules and homidium chloride tablets. Geographically, the group generates maximum revenue from the Asia-Pacific region, and the rest from India, Europe, the USA, and the rest of the world.
78GF Score
Get the complete analysis for NSE:NGLFINE
ROC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NSE:NGLFINE has been successfully added to your 
