ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Shri Hare-Krishna Sponge Iron's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 0.46%.
As of today (2026-07-13), Shri Hare-Krishna Sponge Iron's WACC % is 10.35%. Shri Hare-Krishna Sponge Iron's ROC % is 5.42% (calculated using TTM income statement data).
Shri Hare-Krishna Sponge Iron earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Shri Hare-Krishna Sponge Iron (NSE:SHKSIL) 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, Shri Hare-Krishna Sponge Iron's WACC % is 10.35%. Shri Hare-Krishna Sponge Iron's ROC % is 5.42% (calculated using TTM income statement data).
Shri Hare-Krishna Sponge Iron 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.
Shri Hare-Krishna Sponge Iron ROC % Related Terms
Shri Hare-Krishna Sponge Iron 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.
Shri Hare-Krishna Sponge Iron (NSE:SHKSIL) has a ROC % of 0.46% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Shri Hare-Krishna Sponge Iron and its competitors.
Is Shri Hare-Krishna Sponge Iron's ROC % too high?
Shri Hare-Krishna Sponge Iron's current ROC % is 0.46%. The Steel industry median ROC % is 2.52. Shri Hare-Krishna Sponge Iron's value of 0.46% is 81.7% below this industry median. Overall, Shri Hare-Krishna Sponge Iron has a GF Score™ of 31/100, reflecting its overall financial health beyond just this single metric.
How does Shri Hare-Krishna Sponge Iron's ROC % compare to NUE and STLD?
Shri Hare-Krishna Sponge Iron's ROC % of 0.46% can be compared against companies in the Steel industry. The industry median ROC % is 2.52. Shri Hare-Krishna Sponge Iron's value of 0.46% is 81.7% 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 Steel company?
The median ROC % among Steel companies is 2.52, based on 621 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. Shri Hare-Krishna Sponge Iron's current ROC % of 0.46% is 81.7% 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 Shri Hare-Krishna Sponge Iron and its competitors. For the Steel industry, the median ROC % is 2.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shri Hare-Krishna Sponge Iron's current ROC % is 0.46%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shri Hare-Krishna Sponge Iron stock overvalued right now?
Shri Hare-Krishna Sponge Iron (NSE:SHKSIL) has a current ROC % of 0.46%. The current ROC % is 0.46% and 81.7% below the Steel industry median of 2.52. Shri Hare-Krishna Sponge Iron's overall GF Score™ is 31/100 with 7 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 Shri Hare-Krishna Sponge Iron (NSE:SHKSIL), the current ROC % is 0.46% 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.
Shri Hare-Krishna Sponge Iron Business Description
Shri Hare-Krishna Sponge Iron Ltd is engaged in the business of manufacturing and selling of Sponge Iron. Sponge iron is mainly used as a raw material for steel production in electric arc furnaces and induction furnaces. Through its sponge iron business, it caters to the metallic requirements of steel producers in selected geographies.
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