Bihar Sponge IronBOM:500058 -1.54%61 Current Ratio is 1.13 as of Mar. 2026, which is 371% above its 10-year median of 0.24. GuruFocus rates BOM:500058 with a GF Score™ of 61/100 and a GF Value™ of ₹10.44 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 634 Steel companies, Bihar Sponge Iron ranks worse than 75.39% on this metric.
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Bihar Sponge Iron's current ratio for the quarter that ended in Mar. 2026 was 1.13.
Bihar Sponge Iron has a current ratio of 1.13. It generally indicates good short-term financial strength.
The historical rank and industry rank for Bihar Sponge Iron's Current Ratio or its related term are showing as below:
BOM:500058'
s Current Ratio Range Over the Past 10 Years
Min: 0.09 Med: 0.24 Max: 1.13
Current: 1.13
During the past 13 years, Bihar Sponge Iron's highest Current Ratio was 1.13. The lowest was 0.09. And the median was 0.24.
BOM:500058's Current Ratio is ranked worse than 75.39% of 634
companies
in the Steel industry
Industry Median: 1.63
vs BOM:500058: 1.13
Bihar Sponge Iron (BOM:500058) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Bihar Sponge Iron Current Ratio Related Terms
Bihar Sponge Iron Current Ratio Historical Data
* Premium members only.
The historical data trend for Bihar Sponge Iron's Current Ratio 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: Current Ratio Comparison
For the Steel subindustry, Bihar Sponge Iron's Current Ratio, along with its competitors' market caps and Current Ratio 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 Current Ratio vs Steel Industry
For the Steel industry and Basic Materials sector, Bihar Sponge Iron's Current Ratio distribution charts can be found below:
* The bar in red indicates where Bihar Sponge Iron's Current Ratio falls into.
* 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 Current Ratio of 1.13 as of Mar. 2026. This is 371% above median its historical median of 0.24. Over the past decade, Bihar Sponge Iron's Current Ratio has ranged from 0.09 to 1.13. According to the industry distribution chart, Bihar Sponge Iron ranks #478 out of 634 companies in the Steel industry, placing it in the top 75.4%.
Is Bihar Sponge Iron's Current Ratio too high?
Bihar Sponge Iron's current Current Ratio of 1.13 is 371% above median its 10-year median of 0.24. Over the past 10 years, this metric has ranged from a low of 0.09 to a high of 1.13. The Steel industry median Current Ratio is 1.63. Bihar Sponge Iron's value of 1.13 is 30.7% below this industry median. Based on the distribution chart, Bihar Sponge Iron ranks #478 out of 634 companies in the Steel industry, which is in the bottom quartile relative to peers. Overall, Bihar Sponge Iron has a GF Score™ of 61/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Bihar Sponge Iron's Current Ratio compare to NUE and STLD?
According to the Steel industry distribution chart, Bihar Sponge Iron ranks #478 out of 634 companies for Current Ratio. This places Bihar Sponge Iron in the lower half of its industry. The industry median Current Ratio is 1.63. Bihar Sponge Iron's value of 1.13 is 30.7% below this benchmark. Historically, Bihar Sponge Iron's own Current Ratio has ranged from 0.09 to 1.13 over the past decade. While the company's 10-year median is 0.24 vs. the industry median of 1.63, Bihar Sponge Iron has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Current Ratio for a Steel company?
The median Current Ratio among Steel companies is 1.63, based on 634 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Bihar Sponge Iron's current Current Ratio of 1.13 is 30.7% 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 Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Steel industry, the median Current Ratio is 1.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bihar Sponge Iron's current Current Ratio is 1.13, which is 371% above median its own 10-year median of 0.24. 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 ₹10.44, compared to a current price of ₹12.77 — trading 22.3% above its estimated fair value. The current Current Ratio is 1.13, which is 371% above median its 10-year median of 0.24 and 30.7% below the Steel industry median of 1.63. Bihar Sponge Iron's overall GF Score™ is 61/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For Bihar Sponge Iron (BOM:500058), the current Current Ratio is 1.13 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 ₹12.77 is trading 22.3% above its estimated GF Value™ of ₹10.44.
GuruFocus considers Bihar Sponge Iron to be Modestly Overvalued.
Key valuation signals for BOM:500058:
Current Ratio: 1.13 (371% above median its 10-year median of 0.24)
GF Value™: ₹10.44 vs. price of ₹12.77 (22.3% above fair value)
Industry Position: 30.7% below the Steel median (#478 of 634)
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.
61GF Score
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