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

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BOM:538540 Raama Finance Ltd BOM:538540
55 GF Score
Price ₹17.30
! 3 Warning Signs
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What is Raama Finance ROCE %?

Raama Finance BOM:538540 -1.26% 55 ROCE % is 34.29% as of Mar. 2026. GuruFocus rates BOM:538540 with a GF Score™ of 55/100. 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

* Premium members only.

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 %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.81 0.05 5.13 13.11 34.29
BOM:538540
55GF 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.

* 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.

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 3.75. Raama Finance's value of 34.29% is 814.4% above this industry median. Overall, Raama Finance has a GF Score™ of 55/100, 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 3.75. Raama Finance's value of 34.29% is 814.4% 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 3.75, based on 420 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 814.4% 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 3.75 — 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?
Raama Finance (BOM:538540) has a current ROCE % of 34.29%. The current ROCE % is 34.29% and 814.4% above the Credit Services industry median of 3.75. Raama Finance's overall GF Score™ is 55/100 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.

Raama Finance Business Description

Address F 40, ground Floor, Sector 6, Gautam Buddha Nagar, Noida, UP, IND, 201301
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.
55GF Score

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

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