Birla Precision TechnologiesBOM:522105 +2.10%69 Current Ratio is 1.41 as of Mar. 2026, which is 21% below its 10-year median of 1.78. GuruFocus rates BOM:522105 with a GF Score™ of 69/100 and a GF Value™ of ₹49.31 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 3,071 Industrial Products companies, Birla Precision Technologies ranks worse than 73.75% 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. Birla Precision Technologies's current ratio for the quarter that ended in Mar. 2026 was 1.41.
Birla Precision Technologies has a current ratio of 1.41. It generally indicates good short-term financial strength.
The historical rank and industry rank for Birla Precision Technologies's Current Ratio or its related term are showing as below:
BOM:522105'
s Current Ratio Range Over the Past 10 Years
Min: 1.41 Med: 1.78 Max: 1.87
Current: 1.41
During the past 13 years, Birla Precision Technologies's highest Current Ratio was 1.87. The lowest was 1.41. And the median was 1.78.
BOM:522105's Current Ratio is ranked worse than 73.75% of 3071
companies
in the Industrial Products industry
Industry Median: 1.97
vs BOM:522105: 1.41
Birla Precision Technologies (BOM:522105) 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.
Birla Precision Technologies Current Ratio Related Terms
Birla Precision Technologies Current Ratio Historical Data
* 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:522105 vs SNA, RBC, LECO: Current Ratio Comparison
For the Tools & Accessories subindustry, Birla Precision Technologies'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.
Birla Precision Technologies Current Ratio vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Birla Precision Technologies's Current Ratio distribution charts can be found below:
* The bar in red indicates where Birla Precision Technologies'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.
Birla Precision Technologies (BOM:522105) has a Current Ratio of 1.41 as of Mar. 2026. This is 21% below median its historical median of 1.78. Over the past decade, Birla Precision Technologies' Current Ratio has ranged from 1.41 to 1.87. According to the industry distribution chart, Birla Precision Technologies ranks #2265 out of 3071 companies in the Industrial Products industry, placing it in the top 73.8%.
Is Birla Precision Technologies' Current Ratio too high?
Birla Precision Technologies' current Current Ratio of 1.41 is 21% below median its 10-year median of 1.78. Over the past 10 years, this metric has ranged from a low of 1.41 to a high of 1.87. The Industrial Products industry median Current Ratio is 1.97. Birla Precision Technologies' value of 1.41 is 28.4% below this industry median. Based on the distribution chart, Birla Precision Technologies ranks #2265 out of 3071 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Birla Precision Technologies has a GF Score™ of 69/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Birla Precision Technologies' Current Ratio compare to SNA and RBC?
According to the Industrial Products industry distribution chart, Birla Precision Technologies ranks #2265 out of 3071 companies for Current Ratio. This places Birla Precision Technologies in the lower half of its industry. The industry median Current Ratio is 1.97. Birla Precision Technologies' value of 1.41 is 28.4% below this benchmark. Historically, Birla Precision Technologies' own Current Ratio has ranged from 1.41 to 1.87 over the past decade. While the company's 10-year median is 1.78 vs. the industry median of 1.97, Birla Precision Technologies 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 an Industrial Products company?
The median Current Ratio among Industrial Products companies is 1.97, based on 3,071 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. Birla Precision Technologies's current Current Ratio of 1.41 is 28.4% 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 Industrial Products industry, the median Current Ratio is 1.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Birla Precision Technologies's current Current Ratio is 1.41, which is 21% below median its own 10-year median of 1.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Birla Precision Technologies stock overvalued right now?
Based on GuruFocus' analysis, Birla Precision Technologies (BOM:522105) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹49.31, compared to a current price of ₹36.90 — trading 25.2% below its estimated fair value. The current Current Ratio is 1.41, which is 21% below median its 10-year median of 1.78 and 28.4% below the Industrial Products industry median of 1.97. Birla Precision Technologies' overall GF Score™ is 69/100 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 Birla Precision Technologies (BOM:522105), the current Current Ratio is 1.41 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 Birla Precision Technologies (BOM:522105) Overvalued in 2026?
Based on GuruFocus' analysis, Birla Precision Technologies stock appears to be undervalued.
The current stock price of ₹36.90 is trading 25.2% below its estimated GF Value™ of ₹49.31.
GuruFocus considers Birla Precision Technologies to be Modestly Undervalued.
Key valuation signals for BOM:522105:
Current Ratio: 1.41 (21% below median its 10-year median of 1.78)
GF Value™: ₹49.31 vs. price of ₹36.90 (25.2% below fair value)
Industry Position: 28.4% below the Industrial Products median (#2265 of 3071)
No single metric tells the full story. See the BOM:522105 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Birla Precision Technologies Ltd engages in the manufacture of precision cutting tools. The company operates in two segments: Cutting Tools and Auto Components. Its products include work holding products, rotating tool holders, machined castings, and precision machined components. The majority of its revenue is earned by the Tools & Precision Components segment. Geographically the firm operates in India, the United States, and the rest of the world of which India acts as a majority revenue generator for the firm.
69GF Score
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