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Ambika Cotton MillsBOM:531978 -0.33%74 Current Ratio is 6.61 as of Mar. 2026, which is 53% above its 10-year median of 4.33. GuruFocus rates BOM:531978 with a GF Score™ of 74/100 and a GF Value™ of ₹1,559.99 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 1,066 Manufacturing - Apparel & Accessories companies, Ambika Cotton Mills ranks better than 92.5% 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. Ambika Cotton Mills's current ratio for the quarter that ended in Mar. 2026 was 6.61.
Ambika Cotton Mills has a current ratio of 6.61. It indicates the company may not be efficiently using its current assets or its short-term financing facilities. This may also indicate problems in working capital management.
The historical rank and industry rank for Ambika Cotton Mills's Current Ratio or its related term are showing as below:
BOM:531978'
s Current Ratio Range Over the Past 10 Years
Min: 3.08 Med: 4.33 Max: 10.01
Current: 6.61
During the past 13 years, Ambika Cotton Mills's highest Current Ratio was 10.01. The lowest was 3.08. And the median was 4.33.
BOM:531978's Current Ratio is ranked better than 92.5% of 1066
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 1.81
vs BOM:531978: 6.61
Ambika Cotton Mills (BOM:531978) 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.
Ambika Cotton Mills Current Ratio Related Terms
Ambika Cotton Mills Current Ratio Historical Data
* Premium members only.
The historical data trend for Ambika Cotton Mills'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.
Ambika Cotton Mills Current Ratio Competitor Comparison
For the Textile Manufacturing subindustry, Ambika Cotton Mills'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.
Ambika Cotton Mills Current Ratio vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Ambika Cotton Mills's Current Ratio distribution charts can be found below:
* The bar in red indicates where Ambika Cotton Mills'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.
Ambika Cotton Mills (BOM:531978) has a Current Ratio of 6.61 as of Mar. 2026. This is 53% above median its historical median of 4.33. Over the past decade, Ambika Cotton Mills' Current Ratio has ranged from 3.08 to 10.01. According to the industry distribution chart, Ambika Cotton Mills ranks #80 out of 1066 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 7.5%.
Is Ambika Cotton Mills' Current Ratio too high?
Ambika Cotton Mills' current Current Ratio of 6.61 is 53% above median its 10-year median of 4.33. Over the past 10 years, this metric has ranged from a low of 3.08 to a high of 10.01. The Manufacturing - Apparel & Accessories industry median Current Ratio is 1.81. Ambika Cotton Mills' value of 6.61 is 265.2% above this industry median. Based on the distribution chart, Ambika Cotton Mills ranks #80 out of 1066 companies in the Manufacturing - Apparel & Accessories industry, which is in the top quartile — a strong position relative to peers. Overall, Ambika Cotton Mills has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ambika Cotton Mills' Current Ratio compare to competitors?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Ambika Cotton Mills ranks #80 out of 1066 companies for Current Ratio. This places Ambika Cotton Mills in the top 8% of its industry — outperforming the majority of peers. The industry median Current Ratio is 1.81. Ambika Cotton Mills' value of 6.61 is 265.2% above this benchmark. Historically, Ambika Cotton Mills' own Current Ratio has ranged from 3.08 to 10.01 over the past decade. While the company's 10-year median is 4.33 vs. the industry median of 1.81, Ambika Cotton Mills 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 Manufacturing - Apparel & Accessories company?
The median Current Ratio among Manufacturing - Apparel & Accessories companies is 1.81, based on 1,066 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. Ambika Cotton Mills's current Current Ratio of 6.61 is 265.2% 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 Manufacturing - Apparel & Accessories industry, the median Current Ratio is 1.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ambika Cotton Mills's current Current Ratio is 6.61, which is 53% above median its own 10-year median of 4.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ambika Cotton Mills stock overvalued right now?
Based on GuruFocus' analysis, Ambika Cotton Mills (BOM:531978) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹1,559.99, compared to a current price of ₹1,726.05 — trading 10.6% above its estimated fair value. The current Current Ratio is 6.61, which is 53% above median its 10-year median of 4.33 and 265.2% above the Manufacturing - Apparel & Accessories industry median of 1.81. Ambika Cotton Mills' overall GF Score™ is 74/100 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 Ambika Cotton Mills (BOM:531978), the current Current Ratio is 6.61 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 Ambika Cotton Mills (BOM:531978) Overvalued in 2026?
Based on GuruFocus' analysis, Ambika Cotton Mills stock appears to be overvalued.
The current stock price of ₹1,726.05 is trading 10.6% above its estimated GF Value™ of ₹1,559.99.
GuruFocus considers Ambika Cotton Mills to be Modestly Overvalued.
Key valuation signals for BOM:531978:
Current Ratio: 6.61 (53% above median its 10-year median of 4.33)
GF Value™: ₹1,559.99 vs. price of ₹1,726.05 (10.6% above fair value)
Industry Position: 265.2% above the Manufacturing - Apparel & Accessories median (#80 of 1066)
No single metric tells the full story. See the BOM:531978 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ambika Cotton Mills Ltd engages in the manufacture of cotton yarns for hosiery and weaving. The Textiles produces compact cotton; hard and soft twist; cylindrical dye cone; and s and z twist yarns. The Windmills generate power from windmills. Geographically, the company generates revenue from Europe, Asia, North America, Africa, and India. The company generates majority of its revenue from Asia.
74GF Score
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