Bihar Sponge Iron's Days Sales Outstanding for the
three
months ended in Mar. 2026 was 192.36.
Bihar Sponge Iron's Days Inventory for the
three
months ended in Mar. 2026 was 22.37.
Bihar Sponge Iron's Days Payable for the
three
months ended in Mar. 2026 was 37.57.
Therefore, Bihar Sponge Iron's Cash Conversion Cycle (CCC) for the
three
months ended in Mar. 2026 was 177.16.
Bihar Sponge Iron (BOM:500058) Cash Conversion Cycle Explanation
Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.
Be Aware
CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.
The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.
Bihar Sponge Iron Cash Conversion Cycle Related Terms
Bihar Sponge Iron Cash Conversion Cycle Historical Data
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The historical data trend for Bihar Sponge Iron's Cash Conversion Cycle 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.
BOM:500058 vs NUE, STLD, RS: Cash Conversion Cycle Comparison
For the Steel subindustry, Bihar Sponge Iron's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Bihar Sponge Iron Cash Conversion Cycle vs Steel Industry
For the Steel industry and Basic Materials sector, Bihar Sponge Iron's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Bihar Sponge Iron's Cash Conversion Cycle falls into.
Bihar Sponge Iron Cash Conversion Cycle Calculation
Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.
Cash Conversion Cycle is one of several measures of management effectiveness.
Bihar Sponge Iron's Cash Conversion Cycle for the fiscal year that ended in Mar. 2026 is calculated as
* 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.
Bihar Sponge Iron (BOM:500058) has a Cash Conversion Cycle of 177.16 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Bihar Sponge Iron and its competitors.
Is Bihar Sponge Iron's Cash Conversion Cycle too high?
Bihar Sponge Iron's current Cash Conversion Cycle is 177.16. The Steel industry median Cash Conversion Cycle is 94.32. Bihar Sponge Iron's value of 177.16 is 87.8% above this industry median. Overall, Bihar Sponge Iron has a GF Score™ of 57/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Bihar Sponge Iron's Cash Conversion Cycle compare to NUE and STLD?
Bihar Sponge Iron's Cash Conversion Cycle of 177.16 can be compared against companies in the Steel industry. The industry median Cash Conversion Cycle is 94.32. Bihar Sponge Iron's value of 177.16 is 87.8% 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 Cash Conversion Cycle for a Steel company?
The median Cash Conversion Cycle among Steel companies is 94.32, based on 609 companies in the industry. Companies in the top quartile (top 25%) have a Cash Conversion Cycle significantly above this median, while those in the bottom quartile fall well below. However, Cash Conversion Cycle should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Bihar Sponge Iron's current Cash Conversion Cycle of 177.16 is 87.8% 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 Cash Conversion Cycle mean?
A high Cash Conversion Cycle can signal that a stock is expensive relative to its fundamentals. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Bihar Sponge Iron and its competitors. For the Steel industry, the median Cash Conversion Cycle is 94.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bihar Sponge Iron's current Cash Conversion Cycle is 177.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bihar Sponge Iron stock overvalued right now?
Based on GuruFocus' analysis, Bihar Sponge Iron (BOM:500058) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹10.41, compared to a current price of ₹12.67 — trading 21.7% above its estimated fair value. The current Cash Conversion Cycle is 177.16 and 87.8% above the Steel industry median of 94.32. Bihar Sponge Iron's overall GF Score™ is 57/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Conversion Cycle calculated?
Cash Conversion Cycle is calculated from a company's financial statements. For Bihar Sponge Iron (BOM:500058), the current Cash Conversion Cycle is 177.16 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 Bihar Sponge Iron (BOM:500058) Overvalued in 2026?
Based on GuruFocus' analysis, Bihar Sponge Iron stock appears to be overvalued.
The current stock price of ₹12.67 is trading 21.7% above its estimated GF Value™ of ₹10.41.
GuruFocus considers Bihar Sponge Iron to be Modestly Overvalued.
Key valuation signals for BOM:500058:
Cash Conversion Cycle: 177.16
GF Value™: ₹10.41 vs. price of ₹12.67 (21.7% above fair value)
No single metric tells the full story. See the BOM:500058 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bihar Sponge Iron Ltd is India's first merchant sponge iron plant located in Jharkhand. It produces Direct Reduced Iron, commonly known as sponge iron, using indigenous iron ore and non-coking coal. Its plant uses coal-based rotary kiln technology for sponge iron production, with additional facilities such as crushing, sizing, and magnetic separation for raw materials. The plant is strategically located with excellent connectivity to many cities and transportation infrastructure. Bihar Sponge Iron also operates captive power plants to meet its energy needs efficiently. The company's sponge iron serves as a substitute for scrap in steelmaking electric arc and induction furnaces.
57GF Score
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