Deepak NitriteBOM:506401 +1.19%88 Current Ratio is 2.40 as of Mar. 2026, which is 4% below its 10-year median of 2.51. GuruFocus rates BOM:506401 with a GF Score™ of 88/100 and a GF Value™ of ₹2,193.27 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 1,605 Chemicals companies, Deepak Nitrite ranks better than 62.99% 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. Deepak Nitrite's current ratio for the quarter that ended in Mar. 2026 was 2.40.
Deepak Nitrite has a current ratio of 2.40. It generally indicates good short-term financial strength.
The historical rank and industry rank for Deepak Nitrite's Current Ratio or its related term are showing as below:
BOM:506401'
s Current Ratio Range Over the Past 10 Years
Min: 0.93 Med: 2.51 Max: 3.62
Current: 2.4
During the past 13 years, Deepak Nitrite's highest Current Ratio was 3.62. The lowest was 0.93. And the median was 2.51.
BOM:506401's Current Ratio is ranked better than 62.99% of 1605
companies
in the Chemicals industry
Industry Median: 1.89
vs BOM:506401: 2.40
Deepak Nitrite (BOM:506401) 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.
Deepak Nitrite Current Ratio Related Terms
Deepak Nitrite Current Ratio Historical Data
* Premium members only.
The historical data trend for Deepak Nitrite'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.
For the Chemicals subindustry, Deepak Nitrite'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.
Deepak Nitrite Current Ratio vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Deepak Nitrite's Current Ratio distribution charts can be found below:
* The bar in red indicates where Deepak Nitrite'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.
Deepak Nitrite (BOM:506401) has a Current Ratio of 2.40 as of Mar. 2026. This is near median its historical median of 2.51. Over the past decade, Deepak Nitrite's Current Ratio has ranged from 0.93 to 3.62. According to the industry distribution chart, Deepak Nitrite ranks #594 out of 1605 companies in the Chemicals industry, placing it in the top 37%.
Is Deepak Nitrite's Current Ratio too high?
Deepak Nitrite's current Current Ratio of 2.40 is near median its 10-year median of 2.51. Over the past 10 years, this metric has ranged from a low of 0.93 to a high of 3.62. The Chemicals industry median Current Ratio is 1.89. Deepak Nitrite's value of 2.40 is 27% above this industry median. Based on the distribution chart, Deepak Nitrite ranks #594 out of 1605 companies in the Chemicals industry, which is above the industry midpoint. Overall, Deepak Nitrite has a GF Score™ of 88/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Deepak Nitrite's Current Ratio compare to DOW?
According to the Chemicals industry distribution chart, Deepak Nitrite ranks #594 out of 1605 companies for Current Ratio. This puts Deepak Nitrite in the upper half of its industry. The industry median Current Ratio is 1.89. Deepak Nitrite's value of 2.40 is 27% above this benchmark. Historically, Deepak Nitrite's own Current Ratio has ranged from 0.93 to 3.62 over the past decade. While the company's 10-year median is 2.51 vs. the industry median of 1.89, Deepak Nitrite 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 Chemicals company?
The median Current Ratio among Chemicals companies is 1.89, based on 1,605 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. Deepak Nitrite's current Current Ratio of 2.40 is 27% 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 Chemicals industry, the median Current Ratio is 1.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Deepak Nitrite's current Current Ratio is 2.40, which is near median its own 10-year median of 2.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Deepak Nitrite stock overvalued right now?
Based on GuruFocus' analysis, Deepak Nitrite (BOM:506401) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹2,193.27, compared to a current price of ₹1,642.55 — trading 25.1% below its estimated fair value. The current Current Ratio is 2.40, which is near median its 10-year median of 2.51 and 27% above the Chemicals industry median of 1.89. Deepak Nitrite's overall GF Score™ is 88/100 with 6 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 Deepak Nitrite (BOM:506401), the current Current Ratio is 2.40 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 Deepak Nitrite (BOM:506401) Overvalued in 2026?
Based on GuruFocus' analysis, Deepak Nitrite stock appears to be undervalued.
The current stock price of ₹1,642.55 is trading 25.1% below its estimated GF Value™ of ₹2,193.27.
GuruFocus considers Deepak Nitrite to be Modestly Undervalued.
Key valuation signals for BOM:506401:
Current Ratio: 2.40 (near median its 10-year median of 2.51)
GF Value™: ₹2,193.27 vs. price of ₹1,642.55 (25.1% below fair value)
Industry Position: 27% above the Chemicals median (#594 of 1605)
No single metric tells the full story. See the BOM:506401 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Deepak Nitrite Ltd is a chemical manufacturing company. The company has two business segments; Advanced Intermediates, and Phenolics. Maximum revenue is generated from the Phenolics segment which manufactures chemicals like Cumene, Phenol, Acetone, Isopropyl Alcohol, and Alpha Methyl Styrene (AMS) among others. The chemicals are used in various industries such as Laminate & Plywood, Automotive, Construction, Pharmaceuticals, Adhesives, Sanitisers, and others. Geographically, the company derives its maximum revenue from India and the rest from other countries through exports.
88GF Score
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