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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. Rajapalayam Mills's annualized ROCE % for the quarter that ended in Mar. 2026 was 2.28%.
Rajapalayam Mills (NSE:RAJPALAYAM) 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.
Rajapalayam Mills ROCE % Related Terms
Rajapalayam Mills ROCE % Historical Data
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The historical data trend for Rajapalayam Mills'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.
(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.
Rajapalayam Mills (NSE:RAJPALAYAM) has a ROCE % of 2.28% as of Mar. 2026.
Is Rajapalayam Mills' ROCE % too high?
Rajapalayam Mills' current ROCE % is 2.28%. The Manufacturing - Apparel & Accessories industry median ROCE % is 6.33. Rajapalayam Mills' value of 2.28% is 64% below this industry median. Overall, Rajapalayam Mills has a GF Score™ of 67/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Rajapalayam Mills' ROCE % compare to competitors?
Rajapalayam Mills' ROCE % of 2.28% can be compared against companies in the Manufacturing - Apparel & Accessories industry. The industry median ROCE % is 6.33. Rajapalayam Mills' value of 2.28% is 64% 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 Manufacturing - Apparel & Accessories company?
The median ROCE % among Manufacturing - Apparel & Accessories companies is 6.33, based on 1,036 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. Rajapalayam Mills's current ROCE % of 2.28% is 64% 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 Manufacturing - Apparel & Accessories industry, the median ROCE % is 6.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rajapalayam Mills's current ROCE % is 2.28%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rajapalayam Mills stock overvalued right now?
Based on GuruFocus' analysis, Rajapalayam Mills (NSE:RAJPALAYAM) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹950.11, compared to a current price of ₹838.10 — trading 11.8% below its estimated fair value. The current ROCE % is 2.28% and 64% below the Manufacturing - Apparel & Accessories industry median of 6.33. Rajapalayam Mills' overall GF Score™ is 67/100 with 6 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 Rajapalayam Mills (NSE:RAJPALAYAM), the current ROCE % is 2.28% 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 Rajapalayam Mills (NSE:RAJPALAYAM) Overvalued in 2026?
Based on GuruFocus' analysis, Rajapalayam Mills stock appears to be undervalued.
The current stock price of ₹838.10 is trading 11.8% below its estimated GF Value™ of ₹950.11.
GuruFocus considers Rajapalayam Mills to be Modestly Undervalued.
Key valuation signals for NSE:RAJPALAYAM:
ROCE %: 2.28%
GF Value™: ₹950.11 vs. price of ₹838.10 (11.8% below fair value)
Industry Position: 64% below the Manufacturing - Apparel & Accessories median
No single metric tells the full story. See the NSE:RAJPALAYAM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rajapalayam Mills Ltd is an India-based company engaged in the manufacture of yarn and fabrics. The operates in segments namely, Textiles and Windmills. The Textiles segment of the company offers ring yarn, compact yarn, Elitwist compact yarn, TFO doubled yarn, gassed yarn, slub, and multicount yarn, model/Tencel yarn, open-end yarn, and organic cotton yarn, and the windmills segment engaged in the generation of power from windmills. The firm generates a majority of its revenue from the textile segment.
67GF Score
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