ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Sambhv Steel Tubes's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 18.37%.
As of today (2026-06-28), Sambhv Steel Tubes's WACC % is 12.70%. Sambhv Steel Tubes's ROC % is 9.88% (calculated using TTM income statement data).
Sambhv Steel Tubes earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Sambhv Steel Tubes (NSE:SAMBHV) 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, Sambhv Steel Tubes's WACC % is 12.70%. Sambhv Steel Tubes's ROC % is 9.88% (calculated using TTM income statement data).
Sambhv Steel Tubes 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.
Sambhv Steel Tubes ROC % Related Terms
Sambhv Steel Tubes ROC % Historical Data
* Premium members only.
The historical data trend for Sambhv Steel Tubes'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.
Sambhv Steel Tubes (NSE:SAMBHV) has a ROC % of 18.37% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Sambhv Steel Tubes and its competitors.
Is Sambhv Steel Tubes' ROC % too high?
Sambhv Steel Tubes' current ROC % is 18.37%. The Steel industry median ROC % is 2.51. Sambhv Steel Tubes' value of 18.37% is 633.3% above this industry median. Overall, Sambhv Steel Tubes has a GF Score™ of 17/100, reflecting its overall financial health beyond just this single metric.
How does Sambhv Steel Tubes' ROC % compare to NUE and STLD?
Sambhv Steel Tubes' ROC % of 18.37% can be compared against companies in the Steel industry. The industry median ROC % is 2.51. Sambhv Steel Tubes' value of 18.37% is 633.3% 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 Steel company?
The median ROC % among Steel companies is 2.51, based on 622 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. Sambhv Steel Tubes's current ROC % of 18.37% is 633.3% 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 Sambhv Steel Tubes and its competitors. For the Steel industry, the median ROC % is 2.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sambhv Steel Tubes's current ROC % is 18.37%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sambhv Steel Tubes stock overvalued right now?
Sambhv Steel Tubes (NSE:SAMBHV) has a current ROC % of 18.37%. The current ROC % is 18.37% and 633.3% above the Steel industry median of 2.51. Sambhv Steel Tubes' overall GF Score™ is 17/100 with 2 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 Sambhv Steel Tubes (NSE:SAMBHV), the current ROC % is 18.37% 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.
Sambhv Steel Tubes Ltd manufactures electric resistance welded steel pipes and structural tubes (hollow section) in India. The company's backward integration processes allow it to manufacture a range of finished products including ERW black pipes and tubes (hollow section), pre-galvanized pipes, Cold Rolled Full Hard Pipes, and galvanized iron pipes and steel door frames, using intermediate products such as sponge iron, blooms/slabs and hot rolled coil, cold rolled coil (mild steel) and GP coils. Its products are used in wide applications across multiple sectors, including housing and infrastructure, water transportation, agriculture, automobile, telecommunications, oil and gas, engineering, solar energy, fire-fighting systems, and for support structures of conveyors.
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