Sadhana Nitro ChemBOM:506642 +0.37%58 Current Ratio is 1.80 as of Mar. 2026, which is 31% above its 10-year median of 1.37. GuruFocus rates BOM:506642 with a GF Score™ of 58/100 and a GF Value™ of ₹1.04 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,605 Chemicals companies, Sadhana Nitro Chem ranks worse than 53.02% 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. Sadhana Nitro Chem's current ratio for the quarter that ended in Mar. 2026 was 1.80.
Sadhana Nitro Chem has a current ratio of 1.80. It generally indicates good short-term financial strength.
The historical rank and industry rank for Sadhana Nitro Chem's Current Ratio or its related term are showing as below:
BOM:506642'
s Current Ratio Range Over the Past 10 Years
Min: 0.65 Med: 1.37 Max: 1.8
Current: 1.8
During the past 13 years, Sadhana Nitro Chem's highest Current Ratio was 1.80. The lowest was 0.65. And the median was 1.37.
BOM:506642's Current Ratio is ranked worse than 53.02% of 1605
companies
in the Chemicals industry
Industry Median: 1.89
vs BOM:506642: 1.80
Sadhana Nitro Chem (BOM:506642) 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.
Sadhana Nitro Chem Current Ratio Related Terms
Sadhana Nitro Chem Current Ratio Historical Data
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The historical data trend for Sadhana Nitro Chem'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, Sadhana Nitro Chem'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.
Sadhana Nitro Chem Current Ratio vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Sadhana Nitro Chem's Current Ratio distribution charts can be found below:
* The bar in red indicates where Sadhana Nitro Chem'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.
Sadhana Nitro Chem (BOM:506642) has a Current Ratio of 1.80 as of Mar. 2026. This is 31% above median its historical median of 1.37. Over the past decade, Sadhana Nitro Chem's Current Ratio has ranged from 0.65 to 1.80. According to the industry distribution chart, Sadhana Nitro Chem ranks #851 out of 1605 companies in the Chemicals industry, placing it in the top 53%.
Is Sadhana Nitro Chem's Current Ratio too high?
Sadhana Nitro Chem's current Current Ratio of 1.80 is 31% above median its 10-year median of 1.37. Over the past 10 years, this metric has ranged from a low of 0.65 to a high of 1.80. The Chemicals industry median Current Ratio is 1.89. Sadhana Nitro Chem's value of 1.80 is 4.8% below this industry median. Based on the distribution chart, Sadhana Nitro Chem ranks #851 out of 1605 companies in the Chemicals industry, which is below the industry midpoint. Overall, Sadhana Nitro Chem has a GF Score™ of 58/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sadhana Nitro Chem's Current Ratio compare to DOW?
According to the Chemicals industry distribution chart, Sadhana Nitro Chem ranks #851 out of 1605 companies for Current Ratio. This places Sadhana Nitro Chem in the lower half of its industry. The industry median Current Ratio is 1.89. Sadhana Nitro Chem's value of 1.80 is 4.8% below this benchmark. Historically, Sadhana Nitro Chem's own Current Ratio has ranged from 0.65 to 1.80 over the past decade. While the company's 10-year median is 1.37 vs. the industry median of 1.89, Sadhana Nitro Chem 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 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. Sadhana Nitro Chem's current Current Ratio of 1.80 is 4.8% 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 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. Sadhana Nitro Chem's current Current Ratio is 1.80, which is 31% above median its own 10-year median of 1.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sadhana Nitro Chem stock overvalued right now?
Based on GuruFocus' analysis, Sadhana Nitro Chem (BOM:506642) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹1.04, compared to a current price of ₹2.73 — trading 162.5% above its estimated fair value. The current Current Ratio is 1.80, which is 31% above median its 10-year median of 1.37 and 4.8% below the Chemicals industry median of 1.89. Sadhana Nitro Chem's overall GF Score™ is 58/100 with 8 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 Sadhana Nitro Chem (BOM:506642), the current Current Ratio is 1.80 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 Sadhana Nitro Chem (BOM:506642) Overvalued in 2026?
Based on GuruFocus' analysis, Sadhana Nitro Chem stock appears to be overvalued.
The current stock price of ₹2.73 is trading 162.5% above its estimated GF Value™ of ₹1.04.
GuruFocus considers Sadhana Nitro Chem to be Significantly Overvalued.
Key valuation signals for BOM:506642:
Current Ratio: 1.80 (31% above median its 10-year median of 1.37)
GF Value™: ₹1.04 vs. price of ₹2.73 (162.5% above fair value)
Industry Position: 4.8% below the Chemicals median (#851 of 1605)
No single metric tells the full story. See the BOM:506642 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sadhana Nitro Chem Ltd is a company that operates in the chemical business. It is engaged in the manufacture of chemical intermediates, heavy organic chemicals, performance chemicals, and wireless network equipment and services. The company offers chemicals like nitrobenzene, metanilic acid, aniline, ortho-aminophenol, ammonium sulphate, dibutyl keto acid, etc. The majority of its revenue is generated from the sale of chemical intermediaries. The group has two reportable segments based on geographical area, i.e., domestic sales, which form a substantial part of its overall revenue, and export sales.
58GF Score
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