ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Sapphire Foods India's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 2.41%.
As of today (2026-06-28), Sapphire Foods India's WACC % is 14.57%. Sapphire Foods India's ROC % is 2.32% (calculated using TTM income statement data).
Sapphire Foods India earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Sapphire Foods India (NSE:SAPPHIRE) 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, Sapphire Foods India's WACC % is 14.57%. Sapphire Foods India's ROC % is 2.32% (calculated using TTM income statement data).
Sapphire Foods India 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.
Sapphire Foods India (NSE:SAPPHIRE) has a ROC % of 2.41% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Sapphire Foods India and its competitors.
Is Sapphire Foods India's ROC % too high?
Sapphire Foods India's current ROC % is 2.41%. The Restaurants industry median ROC % is 4.24. Sapphire Foods India's value of 2.41% is 43.2% below this industry median. Overall, Sapphire Foods India has a GF Score™ of 68/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Sapphire Foods India's ROC % compare to MCD and SBUX?
Sapphire Foods India's ROC % of 2.41% can be compared against companies in the Restaurants industry. The industry median ROC % is 4.24. Sapphire Foods India's value of 2.41% is 43.2% 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 Restaurants company?
The median ROC % among Restaurants companies is 4.24, based on 358 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. Sapphire Foods India's current ROC % of 2.41% is 43.2% 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 Sapphire Foods India and its competitors. For the Restaurants industry, the median ROC % is 4.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sapphire Foods India's current ROC % is 2.41%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sapphire Foods India stock overvalued right now?
Based on GuruFocus' analysis, Sapphire Foods India (NSE:SAPPHIRE) is currently considered Possible Value Trap. The stock's GF Value™ is ₹367.37, compared to a current price of ₹180.37 — trading 50.9% below its estimated fair value. The current ROC % is 2.41% and 43.2% below the Restaurants industry median of 4.24. Sapphire Foods India's overall GF Score™ is 68/100 with 4 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 Sapphire Foods India (NSE:SAPPHIRE), the current ROC % is 2.41% 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 Sapphire Foods India (NSE:SAPPHIRE) Overvalued in 2026?
Based on GuruFocus' analysis, Sapphire Foods India stock appears to be undervalued.
The current stock price of ₹180.37 is trading 50.9% below its estimated GF Value™ of ₹367.37.
GuruFocus considers Sapphire Foods India to be Possible Value Trap.
Key valuation signals for NSE:SAPPHIRE:
ROC %: 2.41%
GF Value™: ₹367.37 vs. price of ₹180.37 (50.9% below fair value)
Industry Position: 43.2% below the Restaurants median
No single metric tells the full story. See the NSE:SAPPHIRE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sapphire Foods India Ltd is a franchisee of Yum! Brands in the Indian subcontinent, with a track record of operating more than four hundred KFC, Pizza Hut, and Taco Bell restaurants across India, Sri Lanka, and the Maldives. Its business activity majorly falls within a single business and geographical segment, which is Food and Beverages. The company generates the majority of its revenue from Restaurant sales. The company also generates a small portion of its revenue from sales to Airport dealers/ franchisees, Scrap sales & others, and Alliance Income.
68GF Score
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