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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. Sonal Mercantile's current ratio for the quarter that ended in Mar. 2026 was 0.00.
Sonal Mercantile has a current ratio of 0.00. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Sonal Mercantile has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.
The historical rank and industry rank for Sonal Mercantile's Current Ratio or its related term are showing as below:
During the past 13 years, Sonal Mercantile's highest Current Ratio was 4379.02. The lowest was 49.07. And the median was 99.59.
BOM:538943's Current Ratio is not ranked *
in the Credit Services industry.
Industry Median: 4.71 * Ranked among companies with meaningful Current Ratio only.
Sonal Mercantile (BOM:538943) 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.
Sonal Mercantile Current Ratio Related Terms
Sonal Mercantile Current Ratio Historical Data
* Premium members only.
The historical data trend for Sonal Mercantile'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:538943 vs V, MA, AXP: Current Ratio Comparison
For the Credit Services subindustry, Sonal Mercantile'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.
Sonal Mercantile Current Ratio vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Sonal Mercantile's Current Ratio distribution charts can be found below:
* The bar in red indicates where Sonal Mercantile'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.
Sonal Mercantile (BOM:538943) has a Current Ratio of 0.00 as of Mar. 2026. Over the past decade, Sonal Mercantile's Current Ratio has ranged from 49.07 to 4,379.02. According to the industry distribution chart, Sonal Mercantile ranks #999999 out of 397 companies in the Credit Services industry.
Is Sonal Mercantile's Current Ratio too high?
Sonal Mercantile's current Current Ratio is 0.00. Over the past 10 years, this metric has ranged from a low of 49.07 to a high of 4,379.02. Based on the distribution chart, Sonal Mercantile ranks #999999 out of 397 companies in the Credit Services industry, which is in the bottom quartile relative to peers. Overall, Sonal Mercantile has a GF Score™ of 69/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sonal Mercantile's Current Ratio compare to V and MA?
According to the Credit Services industry distribution chart, Sonal Mercantile ranks #999999 out of 397 companies for Current Ratio. This places Sonal Mercantile in the lower half of its industry. The industry median Current Ratio is 4.71. Historically, Sonal Mercantile's own Current Ratio has ranged from 49.07 to 4,379.02 over the past decade. 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 Credit Services company?
The median Current Ratio among Credit Services companies is 4.71, based on 397 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. 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 Credit Services industry, the median Current Ratio is 4.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sonal Mercantile's current Current Ratio is 0.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sonal Mercantile stock overvalued right now?
Based on GuruFocus' analysis, Sonal Mercantile (BOM:538943) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹111.60, compared to a current price of ₹92.21 — trading 17.4% below its estimated fair value. The current Current Ratio is 0.00. Sonal Mercantile's overall GF Score™ is 69/100 with 3 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 Sonal Mercantile (BOM:538943), the current Current Ratio is 0.00 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 Sonal Mercantile (BOM:538943) Overvalued in 2026?
Based on GuruFocus' analysis, Sonal Mercantile stock appears to be undervalued.
The current stock price of ₹92.21 is trading 17.4% below its estimated GF Value™ of ₹111.60.
GuruFocus considers Sonal Mercantile to be Modestly Undervalued.
Key valuation signals for BOM:538943:
Current Ratio: 0.00
GF Value™: ₹111.60 vs. price of ₹92.21 (17.4% below fair value)
No single metric tells the full story. See the BOM:538943 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sonal Mercantile Ltd is an India-based non-banking financial company. It is engaged in providing secured and unsecured loans and advances and is also involved in investing in quoted and unquoted securities in the stock and commodity markets. The company offers inter-corporate loans, personal loans, long-term and short-term loans, Trade financing, Bills Discounting, Project Appraisal, Loans against Guarantees, and Properties.
69GF Score
Get the complete analysis for BOM:538943
Current Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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