ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Poddar Pigments's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 2.07%.
As of today (2026-07-02), Poddar Pigments's WACC % is 13.02%. Poddar Pigments's ROC % is 3.01% (calculated using TTM income statement data).
Poddar Pigments earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, Poddar Pigments's WACC % is 13.02%. Poddar Pigments's ROC % is 3.01% (calculated using TTM income statement data).
Poddar Pigments 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.
Poddar Pigments ROC % Related Terms
Poddar Pigments ROC % Historical Data
* Premium members only.
The historical data trend for Poddar Pigments'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.
Poddar Pigments (NSE:PODDARMENT) has a ROC % of 2.07% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Poddar Pigments and its competitors.
Is Poddar Pigments' ROC % too high?
Poddar Pigments' current ROC % is 2.07%. The Chemicals industry median ROC % is 4.46. Poddar Pigments' value of 2.07% is 53.6% below this industry median. Overall, Poddar Pigments has a GF Score™ of 77/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Poddar Pigments' ROC % compare to LIN and SHW?
Poddar Pigments' ROC % of 2.07% can be compared against companies in the Chemicals industry. The industry median ROC % is 4.46. Poddar Pigments' value of 2.07% is 53.6% 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 Chemicals company?
The median ROC % among Chemicals companies is 4.46, based on 1,580 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. Poddar Pigments's current ROC % of 2.07% is 53.6% 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 Poddar Pigments and its competitors. For the Chemicals industry, the median ROC % is 4.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Poddar Pigments's current ROC % is 2.07%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Poddar Pigments stock overvalued right now?
Based on GuruFocus' analysis, Poddar Pigments (NSE:PODDARMENT) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹350.13, compared to a current price of ₹246.88 — trading 29.5% below its estimated fair value. The current ROC % is 2.07% and 53.6% below the Chemicals industry median of 4.46. Poddar Pigments' overall GF Score™ is 77/100 with 6 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 Poddar Pigments (NSE:PODDARMENT), the current ROC % is 2.07% 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 Poddar Pigments (NSE:PODDARMENT) Overvalued in 2026?
Based on GuruFocus' analysis, Poddar Pigments stock appears to be undervalued.
The current stock price of ₹246.88 is trading 29.5% below its estimated GF Value™ of ₹350.13.
GuruFocus considers Poddar Pigments to be Modestly Undervalued.
Key valuation signals for NSE:PODDARMENT:
ROC %: 2.07%
GF Value™: ₹350.13 vs. price of ₹246.88 (29.5% below fair value)
Industry Position: 53.6% below the Chemicals median
No single metric tells the full story. See the NSE:PODDARMENT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Poddar Pigments Ltd is an India-based company that manufactures color and additive masterbatches for dope dyeing of polypropylene, nylon, and polyester multifilament yarn, fibers. The company's product category includes Masterbatch for Man-Made Fiber, Masterbatches for Plastic Applications, and Functional and Additive Masterbatches. The company generates all of its revenue from the sale of products, Geographically the company derives the majority of its revenue from India.
77GF Score
Get the complete analysis for NSE:PODDARMENT
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:PODDARMENT has been successfully added to your 
