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Eicher MotorsBOM:505200 +0.10%94 Current Ratio is 1.90 as of Mar. 2026, which is 8% above its 10-year median of 1.76. GuruFocus rates BOM:505200 with a GF Score™ of 94/100 and a GF Value™ of ₹7,053.65 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,331 Vehicles & Parts companies, Eicher Motors ranks better than 63.49% 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. Eicher Motors's current ratio for the quarter that ended in Mar. 2026 was 1.90.
Eicher Motors has a current ratio of 1.90. It generally indicates good short-term financial strength.
The historical rank and industry rank for Eicher Motors's Current Ratio or its related term are showing as below:
BOM:505200'
s Current Ratio Range Over the Past 10 Years
Min: 0.9 Med: 1.76 Max: 3.35
Current: 1.9
During the past 13 years, Eicher Motors's highest Current Ratio was 3.35. The lowest was 0.90. And the median was 1.76.
BOM:505200's Current Ratio is ranked better than 63.49% of 1331
companies
in the Vehicles & Parts industry
Industry Median: 1.53
vs BOM:505200: 1.90
Eicher Motors (BOM:505200) 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.
Eicher Motors Current Ratio Related Terms
Eicher Motors Current Ratio Historical Data
* Premium members only.
The historical data trend for Eicher Motors'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:505200 vs TSLA, GM, F: Current Ratio Comparison
For the Auto Manufacturers subindustry, Eicher Motors'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.
Eicher Motors Current Ratio vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Eicher Motors's Current Ratio distribution charts can be found below:
* The bar in red indicates where Eicher Motors'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.
Eicher Motors (BOM:505200) has a Current Ratio of 1.90 as of Mar. 2026. This is near median its historical median of 1.76. Over the past decade, Eicher Motors' Current Ratio has ranged from 0.90 to 3.35. According to the industry distribution chart, Eicher Motors ranks #486 out of 1331 companies in the Vehicles & Parts industry, placing it in the top 36.5%.
Is Eicher Motors' Current Ratio too high?
Eicher Motors' current Current Ratio of 1.90 is near median its 10-year median of 1.76. Over the past 10 years, this metric has ranged from a low of 0.90 to a high of 3.35. The Vehicles & Parts industry median Current Ratio is 1.53. Eicher Motors' value of 1.90 is 24.2% above this industry median. Based on the distribution chart, Eicher Motors ranks #486 out of 1331 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Eicher Motors has a GF Score™ of 94/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Eicher Motors' Current Ratio compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Eicher Motors ranks #486 out of 1331 companies for Current Ratio. This puts Eicher Motors in the upper half of its industry. The industry median Current Ratio is 1.53. Eicher Motors' value of 1.90 is 24.2% above this benchmark. Historically, Eicher Motors' own Current Ratio has ranged from 0.90 to 3.35 over the past decade. While the company's 10-year median is 1.76 vs. the industry median of 1.53, Eicher Motors has consistently been above 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 Vehicles & Parts company?
The median Current Ratio among Vehicles & Parts companies is 1.53, based on 1,331 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. Eicher Motors's current Current Ratio of 1.90 is 24.2% 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 Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Vehicles & Parts industry, the median Current Ratio is 1.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Eicher Motors's current Current Ratio is 1.90, which is near median its own 10-year median of 1.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Eicher Motors stock overvalued right now?
Based on GuruFocus' analysis, Eicher Motors (BOM:505200) is currently considered Fairly Valued. The stock's GF Value™ is ₹7,053.65, compared to a current price of ₹7,414.80 — trading 5.1% above its estimated fair value. The current Current Ratio is 1.90, which is near median its 10-year median of 1.76 and 24.2% above the Vehicles & Parts industry median of 1.53. Eicher Motors' overall GF Score™ is 94/100 with 2 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 Eicher Motors (BOM:505200), the current Current Ratio is 1.90 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 Eicher Motors (BOM:505200) Overvalued in 2026?
Based on GuruFocus' analysis, Eicher Motors stock appears to be overvalued.
The current stock price of ₹7,414.80 is trading 5.1% above its estimated GF Value™ of ₹7,053.65.
GuruFocus considers Eicher Motors to be Fairly Valued.
Key valuation signals for BOM:505200:
Current Ratio: 1.90 (near median its 10-year median of 1.76)
GF Value™: ₹7,053.65 vs. price of ₹7,414.80 (5.1% above fair value)
Industry Position: 24.2% above the Vehicles & Parts median (#486 of 1331)
No single metric tells the full story. See the BOM:505200 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Eicher Motors Ltd is an Indian automobile manufacturer and is also engaged in the retail of related components and accessories. The company manufactures two-wheeler motorcycles and commercial vehicles. The Motorcycles division, which derives its key revenue, produces motorcycles through the Royal Enfield brand. The Commercial Vehicles division, through a joint venture with Volvo, produces trucks and buses for sale in India and other developing markets. The company derives the vast majority of its revenue within India and also has a presence in overseas markets.
94GF Score
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