ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Sterlite Technologies's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 5.48%.
As of today (2026-06-26), Sterlite Technologies's WACC % is 9.05%. Sterlite Technologies's ROC % is 2.96% (calculated using TTM income statement data).
Sterlite Technologies earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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, Sterlite Technologies's WACC % is 9.05%. Sterlite Technologies's ROC % is 2.96% (calculated using TTM income statement data).
Sterlite Technologies 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.
Sterlite Technologies (NSE:STLTECH) has a ROC % of 5.48% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Sterlite Technologies and its competitors.
Is Sterlite Technologies' ROC % too high?
Sterlite Technologies' current ROC % is 5.48%. The Hardware industry median ROC % is 4.12. Sterlite Technologies' value of 5.48% is 33.2% above this industry median. Overall, Sterlite Technologies has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sterlite Technologies' ROC % compare to CSCO and CIEN?
Sterlite Technologies' ROC % of 5.48% can be compared against companies in the Hardware industry. The industry median ROC % is 4.12. Sterlite Technologies' value of 5.48% is 33.2% 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 Hardware company?
The median ROC % among Hardware companies is 4.12, based on 2,444 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. Sterlite Technologies's current ROC % of 5.48% is 33.2% 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 Sterlite Technologies and its competitors. For the Hardware industry, the median ROC % is 4.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sterlite Technologies's current ROC % is 5.48%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sterlite Technologies stock overvalued right now?
Based on GuruFocus' analysis, Sterlite Technologies (NSE:STLTECH) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹123.17, compared to a current price of ₹613.35 — trading 398% above its estimated fair value. The current ROC % is 5.48% and 33.2% above the Hardware industry median of 4.12. Sterlite Technologies' overall GF Score™ is 61/100 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 Sterlite Technologies (NSE:STLTECH), the current ROC % is 5.48% 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 Sterlite Technologies (NSE:STLTECH) Overvalued in 2026?
Based on GuruFocus' analysis, Sterlite Technologies stock appears to be overvalued.
The current stock price of ₹613.35 is trading 398% above its estimated GF Value™ of ₹123.17.
GuruFocus considers Sterlite Technologies to be Significantly Overvalued.
Key valuation signals for NSE:STLTECH:
ROC %: 5.48%
GF Value™: ₹123.17 vs. price of ₹613.35 (398% above fair value)
Industry Position: 33.2% above the Hardware median
No single metric tells the full story. See the NSE:STLTECH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sterlite Technologies Ltd is an Indian-based company engaged in the business of Connectivity and Network Solutions. Its products and solutions mainly include integrated optical fiber, copper telecom cables, structured data cables, access equipment, fiber connectivity and system integration solution offerings for telecom networks, OSS/ BSS solutions, billing and bandwidth management solutions for organizations, and others. Its segments include Optical networking business (ONB), Global service business (GSB) and Digital and technology solutions (Digital). The company offers its services within India and in the International market. It earns majority of the revenue from Optical networking business segment.
61GF Score
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