ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Rex Pipes and Cables Industries's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 6.29%.
As of today (2026-06-28), Rex Pipes and Cables Industries's WACC % is 9.11%. Rex Pipes and Cables Industries's ROC % is 6.79% (calculated using TTM income statement data).
Rex Pipes and Cables Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Rex Pipes and Cables Industries (NSE:REXPIPES) 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, Rex Pipes and Cables Industries's WACC % is 9.11%. Rex Pipes and Cables Industries's ROC % is 6.79% (calculated using TTM income statement data).
Rex Pipes and Cables Industries 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.
Rex Pipes and Cables Industries ROC % Related Terms
Rex Pipes and Cables Industries 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.
Note:
The Operating Income data used here is two times the semi-annual (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.
Rex Pipes and Cables Industries (NSE:REXPIPES) has a ROC % of 6.29% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Rex Pipes and Cables Industries and its competitors.
Is Rex Pipes and Cables Industries' ROC % too high?
Rex Pipes and Cables Industries' current ROC % is 6.29%. The Chemicals industry median ROC % is 4.46. Rex Pipes and Cables Industries' value of 6.29% is 41% above this industry median. Overall, Rex Pipes and Cables Industries has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rex Pipes and Cables Industries' ROC % compare to LIN and SHW?
Rex Pipes and Cables Industries' ROC % of 6.29% can be compared against companies in the Chemicals industry. The industry median ROC % is 4.46. Rex Pipes and Cables Industries' value of 6.29% is 41% 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 Chemicals company?
The median ROC % among Chemicals companies is 4.46, based on 1,581 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. Rex Pipes and Cables Industries's current ROC % of 6.29% is 41% 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 Rex Pipes and Cables Industries 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. Rex Pipes and Cables Industries's current ROC % is 6.29%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rex Pipes and Cables Industries stock overvalued right now?
Based on GuruFocus' analysis, Rex Pipes and Cables Industries (NSE:REXPIPES) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹76.28, compared to a current price of ₹174.25 — trading 128.4% above its estimated fair value. The current ROC % is 6.29% and 41% above the Chemicals industry median of 4.46. Rex Pipes and Cables Industries' overall GF Score™ is 61/100 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 Rex Pipes and Cables Industries (NSE:REXPIPES), the current ROC % is 6.29% 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 Rex Pipes and Cables Industries (NSE:REXPIPES) Overvalued in 2026?
Based on GuruFocus' analysis, Rex Pipes and Cables Industries stock appears to be overvalued.
The current stock price of ₹174.25 is trading 128.4% above its estimated GF Value™ of ₹76.28.
GuruFocus considers Rex Pipes and Cables Industries to be Significantly Overvalued.
Key valuation signals for NSE:REXPIPES:
ROC %: 6.29%
GF Value™: ₹76.28 vs. price of ₹174.25 (128.4% above fair value)
No single metric tells the full story. See the NSE:REXPIPES stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rex Pipes and Cables Industries Business Description
Rex Pipes and Cables Industries Ltd operates in the PVC products market, manufacturing environment-friendly PVC pipes and allied products designed for irrigation, plumbing, industrial, domestic and technical applications. The Company serves agriculture, power, construction and engineering sectors, producing insulated winding wires, PVC and HDPE pipes, low-voltage PVC cables up to 1.1 KV, flexible house wires and screened cables supplied through dealer and distributor networks. Its product portfolio includes PVC electrical conduit pipes, three-core flat cables, single-core flexible house wires, sprinkler systems, HDPE coils and pipes, as well as automobile-related products such as shipping containers, commercial container trucks, vanity vans, motorhomes, camper cars, RVs and school buses.
61GF Score
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