ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Robust Hotels's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 3.45%.
As of today (2026-06-29), Robust Hotels's WACC % is 11.76%. Robust Hotels's ROC % is 2.77% (calculated using TTM income statement data).
Robust Hotels earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Robust Hotels (NSE:RHL) 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, Robust Hotels's WACC % is 11.76%. Robust Hotels's ROC % is 2.77% (calculated using TTM income statement data).
Robust Hotels 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.
Robust Hotels ROC % Related Terms
Robust Hotels ROC % Historical Data
* Premium members only.
The historical data trend for Robust Hotels'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.
Robust Hotels (NSE:RHL) has a ROC % of 3.45% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Robust Hotels and its competitors.
Is Robust Hotels' ROC % too high?
Robust Hotels' current ROC % is 3.45%. The Travel & Leisure industry median ROC % is 3.76. Robust Hotels' value of 3.45% is 8.2% below this industry median. Overall, Robust Hotels has a GF Score™ of 80/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Robust Hotels' ROC % compare to MAR and HLT?
Robust Hotels' ROC % of 3.45% can be compared against companies in the Travel & Leisure industry. The industry median ROC % is 3.76. Robust Hotels' value of 3.45% is 8.2% 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 Travel & Leisure company?
The median ROC % among Travel & Leisure companies is 3.76, based on 835 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. Robust Hotels's current ROC % of 3.45% is 8.2% 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 Robust Hotels and its competitors. For the Travel & Leisure industry, the median ROC % is 3.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Robust Hotels's current ROC % is 3.45%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Robust Hotels stock overvalued right now?
Based on GuruFocus' analysis, Robust Hotels (NSE:RHL) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹240.34, compared to a current price of ₹177.30 — trading 26.2% below its estimated fair value. The current ROC % is 3.45% and 8.2% below the Travel & Leisure industry median of 3.76. Robust Hotels' overall GF Score™ is 80/100 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 Robust Hotels (NSE:RHL), the current ROC % is 3.45% 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 Robust Hotels (NSE:RHL) Overvalued in 2026?
Based on GuruFocus' analysis, Robust Hotels stock appears to be undervalued.
The current stock price of ₹177.30 is trading 26.2% below its estimated GF Value™ of ₹240.34.
GuruFocus considers Robust Hotels to be Modestly Undervalued.
Key valuation signals for NSE:RHL:
ROC %: 3.45%
GF Value™: ₹240.34 vs. price of ₹177.30 (26.2% below fair value)
Industry Position: 8.2% below the Travel & Leisure median
No single metric tells the full story. See the NSE:RHL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Robust Hotels Ltd is a hospitality company with a presence in Chennai. The company operates several hotels in the city, including the Hyatt Regency Chennai. Known for its commitment to excellence and quality service, Robust Hotels Ltd offers premium accommodations and amenities to both business and leisure travelers. The company generates the majority of its revenue from Hotel room revenue. The company's segment includes the Hotel Business segment and the Investment Division segment. The firm generates key revenue from the Hotel Business segment.
80GF Score
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