ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Prostarm Info Systems's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 9.36%.
As of today (2026-07-01), Prostarm Info Systems's WACC % is 12.59%. Prostarm Info Systems's ROC % is 11.74% (calculated using TTM income statement data).
Prostarm Info Systems earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Prostarm Info Systems (NSE:PROSTARM) 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, Prostarm Info Systems's WACC % is 12.59%. Prostarm Info Systems's ROC % is 11.74% (calculated using TTM income statement data).
Prostarm Info Systems 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.
* 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.
Prostarm Info Systems (NSE:PROSTARM) has a ROC % of 9.36% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Prostarm Info Systems and its competitors.
Is Prostarm Info Systems' ROC % too high?
Prostarm Info Systems' current ROC % is 9.36%. The Industrial Products industry median ROC % is 5.21. Prostarm Info Systems' value of 9.36% is 79.7% above this industry median. Overall, Prostarm Info Systems has a GF Score™ of 17/100, reflecting its overall financial health beyond just this single metric.
How does Prostarm Info Systems' ROC % compare to VRT and BE?
Prostarm Info Systems' ROC % of 9.36% can be compared against companies in the Industrial Products industry. The industry median ROC % is 5.21. Prostarm Info Systems' value of 9.36% is 79.7% 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 an Industrial Products company?
The median ROC % among Industrial Products companies is 5.21, based on 3,033 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. Prostarm Info Systems's current ROC % of 9.36% is 79.7% 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 Prostarm Info Systems and its competitors. For the Industrial Products industry, the median ROC % is 5.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Prostarm Info Systems's current ROC % is 9.36%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Prostarm Info Systems stock overvalued right now?
Prostarm Info Systems (NSE:PROSTARM) has a current ROC % of 9.36%. The current ROC % is 9.36% and 79.7% above the Industrial Products industry median of 5.21. Prostarm Info Systems' overall GF Score™ is 17/100 with 3 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 Prostarm Info Systems (NSE:PROSTARM), the current ROC % is 9.36% 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.
Prostarm Info Systems Ltd is engaged in the design, manufacturing, assembly, sales, service, and supply of Energy Storage and Power Conditioning Equipment in India. Its product portfolio includes UPS systems, inverters, lift inverters, solar hybrid inverters, lithium-ion battery packs, servo-controlled voltage stabilizers (SCVS), isolation transformers, and other power solutions. The company also executes rooftop solar photovoltaic power plant projects nationwide on an EPC basis. Its value-added services cover installation, rentals, after-sales support (warranty and post-warranty), and Annual Maintenance Contracts (AMC), complementing its Power Solution Products.
17GF Score
Get the complete analysis for NSE:PROSTARM
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:PROSTARM has been successfully added to your 
