ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Petronet LNG's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 21.17%.
As of today (2026-07-02), Petronet LNG's WACC % is 14.73%. Petronet LNG's ROC % is 22.28% (calculated using TTM income statement data).
Petronet LNG generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
Petronet LNG (NSE:PETRONET) 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, Petronet LNG's WACC % is 14.73%. Petronet LNG's ROC % is 22.28% (calculated using TTM income statement data).
Petronet LNG generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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.
Petronet LNG ROC % Related Terms
Petronet LNG ROC % Historical Data
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The historical data trend for Petronet LNG'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.
Petronet LNG (NSE:PETRONET) has a ROC % of 21.17% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Petronet LNG and its competitors.
Is Petronet LNG's ROC % too high?
Petronet LNG's current ROC % is 21.17%. The Oil & Gas industry median ROC % is 3.66. Petronet LNG's value of 21.17% is 479.2% above this industry median. Overall, Petronet LNG has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Petronet LNG's ROC % compare to VLO and MPC?
Petronet LNG's ROC % of 21.17% can be compared against companies in the Oil & Gas industry. The industry median ROC % is 3.66. Petronet LNG's value of 21.17% is 479.2% 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 an Oil & Gas company?
The median ROC % among Oil & Gas companies is 3.66, based on 1,000 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. Petronet LNG's current ROC % of 21.17% is 479.2% 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 Petronet LNG and its competitors. For the Oil & Gas industry, the median ROC % is 3.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Petronet LNG's current ROC % is 21.17%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Petronet LNG stock overvalued right now?
Based on GuruFocus' analysis, Petronet LNG (NSE:PETRONET) is currently considered Fairly Valued. The stock's GF Value™ is ₹254.03, compared to a current price of ₹279.10 — trading 9.9% above its estimated fair value. The current ROC % is 21.17% and 479.2% above the Oil & Gas industry median of 3.66. Petronet LNG's overall GF Score™ is 85/100 with 4 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 Petronet LNG (NSE:PETRONET), the current ROC % is 21.17% 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 Petronet LNG (NSE:PETRONET) Overvalued in 2026?
Based on GuruFocus' analysis, Petronet LNG stock appears to be overvalued.
The current stock price of ₹279.10 is trading 9.9% above its estimated GF Value™ of ₹254.03.
GuruFocus considers Petronet LNG to be Fairly Valued.
Key valuation signals for NSE:PETRONET:
ROC %: 21.17%
GF Value™: ₹254.03 vs. price of ₹279.10 (9.9% above fair value)
Industry Position: 479.2% above the Oil & Gas median
No single metric tells the full story. See the NSE:PETRONET stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Petronet LNG Ltd is an oil and gas refining and marketing company formed by the government of India. The company operates liquified natural gas receiving and regasification terminals across India. Through its terminals, it also offers tolling services and re-loading terminals. The company has a single operating segment which is Natural Gas Business. Petronet LNG also owns a solid cargo port at Dahej with facilities to import and export products such as steel, coal, and fertilizer in bulk. Sales are largely composed of regasified liquefied natural gas and the majority of its revenue is derived from India.
85GF Score
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