ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Vibhor Steel Tubes's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 6.24%.
As of today (2026-06-26), Vibhor Steel Tubes's WACC % is 9.87%. Vibhor Steel Tubes's ROC % is 5.08% (calculated using TTM income statement data).
Vibhor Steel Tubes earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Vibhor Steel Tubes (NSE:VSTL) 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, Vibhor Steel Tubes's WACC % is 9.87%. Vibhor Steel Tubes's ROC % is 5.08% (calculated using TTM income statement data).
Vibhor 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.
Vibhor Steel Tubes ROC % Related Terms
Vibhor Steel Tubes ROC % Historical Data
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The historical data trend for Vibhor 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.
Vibhor Steel Tubes (NSE:VSTL) has a ROC % of 6.24% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Vibhor Steel Tubes and its competitors.
Is Vibhor Steel Tubes' ROC % too high?
Vibhor Steel Tubes' current ROC % is 6.24%. The Steel industry median ROC % is 2.63. Vibhor Steel Tubes' value of 6.24% is 137.7% above this industry median. Overall, Vibhor Steel Tubes has a GF Score™ of 32/100, reflecting its overall financial health beyond just this single metric.
How does Vibhor Steel Tubes' ROC % compare to NUE and STLD?
Vibhor Steel Tubes' ROC % of 6.24% can be compared against companies in the Steel industry. The industry median ROC % is 2.63. Vibhor Steel Tubes' value of 6.24% is 137.7% 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 2.63, based on 624 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. Vibhor Steel Tubes's current ROC % of 6.24% is 137.7% 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 Vibhor Steel Tubes and its competitors. For the Steel industry, the median ROC % is 2.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vibhor Steel Tubes's current ROC % is 6.24%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vibhor Steel Tubes stock overvalued right now?
Vibhor Steel Tubes (NSE:VSTL) has a current ROC % of 6.24%. The current ROC % is 6.24% and 137.7% above the Steel industry median of 2.63. Vibhor Steel Tubes' overall GF Score™ is 32/100 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 Vibhor Steel Tubes (NSE:VSTL), the current ROC % is 6.24% 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.
Vibhor Steel Tubes Ltd is a manufacturer and exporter of Mild Steel/Carbon Steel ERW Black and Galvanized Pipes, Hallow Steel Pipe, Cold rolled Steel (CR) Strips/ Coils. Steel pipes and tubes are used pipes for frames and shafts, steel pipes for bicycle frames, steel pipes for furniture, CDW pipes for shockers, steel pipes for various structural purposes, steel pipes for various engineering purposes, and others.
32GF Score
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