Raama Finance (BOM:538540) ROCE %: 34.29% (As of Mar. 2026)

What is Raama Finance ROCE %?

Raama Finance BOM:538540 -1.97% 77 ROCE % is 34.29% as of Mar. 2026. GuruFocus rates BOM:538540 with a GF Score™ of 77/100 and a GF Value™ of ₹32.21 (Significantly Undervalued). The stock has 3 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Raama Finance's annualized ROCE % for the quarter that ended in Mar. 2026 was 34.29%.

Raama Finance (BOM:538540) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Raama Finance ROCE % Related Terms

Raama Finance ROCE % Historical Data

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The historical data trend for Raama Finance's ROCE % 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.

Raama Finance ROCE % Chart

Raama Finance Annual Data

Trend

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Mar25

Mar26

ROCE %

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0.27

0.22

0.28

0.27

18.22

Raama Finance Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25	Jun25	Sep25	Dec25	Mar26
ROCE %	Get a 7-Day Free Trial															0.81	0.05	5.13	13.11	34.29

77GF Score

Raama Finance Ltd BOM:538540

ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.

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Raama Finance ROCE % Calculation

Raama Finance's annualized ROCE % for the fiscal year that ended in Mar. 2026 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Mar. 2026 )		(A: Mar. 2025 )		(A: Mar. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Mar. 2026 )		(A: Mar. 2025 )		(A: Mar. 2026 )
	=	42.187	/	( ( (63.8 - 4.246)	+	(439.624 - 36.077) )	/ 2 )
	=	42.187	/	( (59.554	+	403.547)	/ 2 )
	=	42.187	/	231.5505
	=	18.22 %

Raama Finance's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	138.36	/	( ( (0 - 0)	+	(439.624 - 36.077) )	/ 1 )
	=	138.36	/	( ( 0	+	403.547 )	/ 1 )
	=	138.36	/	403.547
	=	34.29 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of 34.29% mean?

Raama Finance (BOM:538540) has a ROCE % of 34.29% as of Mar. 2026.

Is Raama Finance's ROCE % too high?

Raama Finance's current ROCE % is 34.29%. The Credit Services industry median ROCE % is 3.53. Raama Finance's value of 34.29% is 871.4% above this industry median. Overall, Raama Finance has a GF Score™ of 77/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.

How does Raama Finance's ROCE % compare to V and MA?

Raama Finance's ROCE % of 34.29% can be compared against companies in the Credit Services industry. The industry median ROCE % is 3.53. Raama Finance's value of 34.29% is 871.4% 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 ROCE % for a Credit Services company?

The median ROCE % among Credit Services companies is 3.53, based on 415 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Raama Finance's current ROCE % of 34.29% is 871.4% 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 ROCE % mean?

A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Credit Services industry, the median ROCE % is 3.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Raama Finance's current ROCE % is 34.29%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Raama Finance stock overvalued right now?

Based on GuruFocus' analysis, Raama Finance (BOM:538540) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹32.21, compared to a current price of ₹17.87 — trading 44.5% below its estimated fair value. The current ROCE % is 34.29% and 871.4% above the Credit Services industry median of 3.53. Raama Finance's overall GF Score™ is 77/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is ROCE % calculated?

ROCE % is calculated from a company's financial statements. For Raama Finance (BOM:538540), the current ROCE % is 34.29% 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 Raama Finance (BOM:538540) Overvalued in 2026?

Based on GuruFocus' analysis, Raama Finance stock appears to be undervalued. The current stock price of ₹17.87 is trading 44.5% below its estimated GF Value™ of ₹32.21. GuruFocus considers Raama Finance to be Significantly Undervalued.

Key valuation signals for BOM:538540:

ROCE %: 34.29%
GF Value™: ₹32.21 vs. price of ₹17.87 (44.5% below fair value)
GF Score™: 77/100 with 3 warning signs
Industry Position: 871.4% above the Credit Services median

No single metric tells the full story. See the BOM:538540 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Raama Finance Business Description

Industry Financial Services Credit Services

Comparable Companies BOM:540168 BOM:531310 BOM:538714 BOM:511724 NSE:USHAFIN BOM:539598 BOM:511066 NSE:IBLFL BOM:538882 BOM:523384 V MA AXP COF BOM:500034 PYPL AFRM SYF NSE:SHRIRAMFIN SOFI

Address F 40, ground Floor, Sector 6, Gautam Buddha Nagar, Noida, UP, IND, 201301

Website https://www.ramchandrafinance.com

Raama Finance Ltd, formerly known as Ramchandra Leasing & Finance Ltd, is a non-banking finance company. It is engaged in commercial loan activities. Its services include leasing (short term and long term) and hire purchase. It provides financial assistance in the form of loans (secured and unsecured) to corporate bodies. The company offers working capital term loan for a term period of a year and two.

77GF Score

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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹17.87

Price

₹32.21

GF Value

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