✅ Ideal ROCE Benchmarks
* > 20% → ⭐ Excellent / High-quality business
* 15% – 20% → 👍 Good / Above average
* 10% – 15% → ⚠️ Average (sector dependent)
* < 10% → ❌ Weak capital efficiency
📌 Sector-wise Ideal ROCE
* FMCG / Consumer Brands: 20% – 35%
* IT / Software: 25% – 50%
* Pharma: 18% – 30%
* Banks / NBFCs: ROCE not relevant → use ROE / NIM
* Manufacturing / Capital Goods: 15% – 25%
* Infrastructure / Utilities: 10% – 15%
* Metals / Commodities: Cyclical (can vary widely)
🔍 How investors should use ROCE
1️⃣ Consistency matters: 5–10 साल तक 18%+ ROCE = strong moat
2️⃣ Compare within sector only
3️⃣ ROCE > Cost of Capital (WACC) होना जरूरी
4️⃣ Rising ROCE = improving business quality
⚠️ Common mistakes
* One-year high ROCE पर भरोसा
* Different sectors की ROCE comparison
* Debt-heavy companies में inflated ROCE ignore करना
🎯 Simple Rule (HNI investors use)
>15%+ ROCE for 5+ years = investable business
>20%+ ROCE for 10+ years = wealth compounder
