Newmalayalam Steel (NSE:NMSTEEL) ROCE %: 2.11% (As of Mar. 2025)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

NSE:NMSTEEL Newmalayalam Steel Ltd NSE:NMSTEEL
13 GF Score
Price ₹24.75
View Full Analysis

What is Newmalayalam Steel ROCE %?

Newmalayalam Steel NSE:NMSTEEL 13 ROCE % is 2.11% as of Mar. 2025. GuruFocus rates NSE:NMSTEEL with a GF Score™ of 13/100.

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. Newmalayalam Steel's annualized ROCE % for the quarter that ended in Mar. 2025 was 2.11%.

Newmalayalam Steel  (NSE:NMSTEEL) 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.

Newmalayalam Steel ROCE % Related Terms

Newmalayalam Steel ROCE % Historical Data

* Premium members only.

The historical data trend for Newmalayalam Steel'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.

Newmalayalam Steel ROCE % Chart

Newmalayalam Steel Annual Data
Trend Mar22 Mar23 Mar24 Mar25
ROCE %
24.18 21.38 17.90 14.28

Newmalayalam Steel Semi-Annual Data
Mar22 Mar23 Mar24 Sep24 Mar25
ROCE % 0.00 0.00 0.00 34.75 2.11
NSE:NMSTEEL
13GF Score
Newmalayalam Steel Ltd NSE:NMSTEEL
ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Newmalayalam Steel ROCE % Calculation

Newmalayalam Steel's annualized ROCE % for the fiscal year that ended in Mar. 2025 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Mar. 2025 )  (A: Mar. 2024 )(A: Mar. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Mar. 2025 )  (A: Mar. 2024 )(A: Mar. 2025 )
=94.462/( ( (1162.451 - 667.355) + (1086.026 - 258.017) )/ 2 )
=94.462/( (495.096+828.009)/ 2 )
=94.462/661.5525
=14.28 %

Newmalayalam Steel's ROCE % of for the quarter that ended in Mar. 2025 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Mar. 2025 )  (Q: Sep. 2024 )(Q: Mar. 2025 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Mar. 2025 )  (Q: Sep. 2024 )(Q: Mar. 2025 )
=14.11/( ( (1103.277 - 592.342) + (1086.026 - 258.017) )/ 2 )
=14.11/( ( 510.935 + 828.009 )/ 2 )
=14.11/669.472
=2.11 %

(1) Note: The EBIT data used here is two times the semi-annual (Mar. 2025) 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 2.11% mean?
Newmalayalam Steel (NSE:NMSTEEL) has a ROCE % of 2.11% as of Mar. 2025.
Is Newmalayalam Steel's ROCE % too high?
Newmalayalam Steel's current ROCE % is 2.11%. The Steel industry median ROCE % is 5.70. Newmalayalam Steel's value of 2.11% is 63% below this industry median. Overall, Newmalayalam Steel has a GF Score™ of 13/100, reflecting its overall financial health beyond just this single metric.
How does Newmalayalam Steel's ROCE % compare to NUE and STLD?
Newmalayalam Steel's ROCE % of 2.11% can be compared against companies in the Steel industry. The industry median ROCE % is 5.70. Newmalayalam Steel's value of 2.11% is 63% 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 ROCE % for a Steel company?
The median ROCE % among Steel companies is 5.70, based on 621 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. Newmalayalam Steel's current ROCE % of 2.11% is 63% 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Steel industry, the median ROCE % is 5.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Newmalayalam Steel's current ROCE % is 2.11%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Newmalayalam Steel stock overvalued right now?
Newmalayalam Steel (NSE:NMSTEEL) has a current ROCE % of 2.11%. The current ROCE % is 2.11% and 63% below the Steel industry median of 5.70. Newmalayalam Steel's overall GF Score™ is 13/100. 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 Newmalayalam Steel (NSE:NMSTEEL), the current ROCE % is 2.11% as of Mar. 2025. 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.

Newmalayalam Steel Business Description

Address Pallipuram P O, Mala, Door No. 2/546/A & 2/546/B, Mala, Thrissur, KL, IND, 680 732
Newmalayalam Steel Ltd is engaged in the manufacturing of galvanized pipes, tubes, and sheets. The Galvanized pipes and tubes are used for building roofs to reduce heat and avoid leakage, further, the galvanization process offers an added advantage of increasing the life of the product and enhancing its quality by making it rust-free. Its products are therefore manufactured to provide an effective solution to the continuous damage caused to houses in Kerala on account of inclement weather conditions.
13GF Score

Get the complete analysis for NSE:NMSTEEL

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

₹24.75
Price