Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
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. Chennai Ferrous Industries's current ratio for the quarter that ended in Mar. 2026 was 3.04.
Chennai Ferrous Industries has a current ratio of 3.04. 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 Chennai Ferrous Industries's Current Ratio or its related term are showing as below:
BOM:539011'
s Current Ratio Range Over the Past 10 Years
Min: 0.04 Med: 0.84 Max: 3.04
Current: 3.04
During the past 13 years, Chennai Ferrous Industries's highest Current Ratio was 3.04. The lowest was 0.04. And the median was 0.84.
BOM:539011's Current Ratio is ranked better than 75.55% of 634
companies
in the Steel industry
Industry Median: 1.63
vs BOM:539011: 3.04
Chennai Ferrous Industries (BOM:539011) 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.
Chennai Ferrous Industries Current Ratio Related Terms
Chennai Ferrous Industries 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:539011 vs NUE, STLD, RS: Current Ratio Comparison
For the Steel subindustry, Chennai Ferrous Industries'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.
Chennai Ferrous Industries Current Ratio vs Steel Industry
For the Steel industry and Basic Materials sector, Chennai Ferrous Industries's Current Ratio distribution charts can be found below:
* The bar in red indicates where Chennai Ferrous Industries'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.
Chennai Ferrous Industries (BOM:539011) has a Current Ratio of 3.04 as of Mar. 2026. This is 262% above median its historical median of 0.84. Over the past decade, Chennai Ferrous Industries' Current Ratio has ranged from 0.04 to 3.04. According to the industry distribution chart, Chennai Ferrous Industries ranks #155 out of 634 companies in the Steel industry, placing it in the top 24.4%.
Is Chennai Ferrous Industries' Current Ratio too high?
Chennai Ferrous Industries' current Current Ratio of 3.04 is 262% above median its 10-year median of 0.84. Over the past 10 years, this metric has ranged from a low of 0.04 to a high of 3.04. The Steel industry median Current Ratio is 1.63. Chennai Ferrous Industries' value of 3.04 is 86.5% above this industry median. Based on the distribution chart, Chennai Ferrous Industries ranks #155 out of 634 companies in the Steel industry, which is in the top quartile — a strong position relative to peers. Overall, Chennai Ferrous Industries has a GF Score™ of 75/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Chennai Ferrous Industries' Current Ratio compare to NUE and STLD?
According to the Steel industry distribution chart, Chennai Ferrous Industries ranks #155 out of 634 companies for Current Ratio. This places Chennai Ferrous Industries in the top 24% of its industry — outperforming the majority of peers. The industry median Current Ratio is 1.63. Chennai Ferrous Industries' value of 3.04 is 86.5% above this benchmark. Historically, Chennai Ferrous Industries' own Current Ratio has ranged from 0.04 to 3.04 over the past decade. While the company's 10-year median is 0.84 vs. the industry median of 1.63, Chennai Ferrous Industries 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 Steel company?
The median Current Ratio among Steel companies is 1.63, based on 634 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. Chennai Ferrous Industries's current Current Ratio of 3.04 is 86.5% 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 Steel industry, the median Current Ratio is 1.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chennai Ferrous Industries's current Current Ratio is 3.04, which is 262% above median its own 10-year median of 0.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chennai Ferrous Industries stock overvalued right now?
Based on GuruFocus' analysis, Chennai Ferrous Industries (BOM:539011) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹91.42, compared to a current price of ₹81.55 — trading 10.8% below its estimated fair value. The current Current Ratio is 3.04, which is 262% above median its 10-year median of 0.84 and 86.5% above the Steel industry median of 1.63. Chennai Ferrous Industries' overall GF Score™ is 75/100 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 Chennai Ferrous Industries (BOM:539011), the current Current Ratio is 3.04 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 Chennai Ferrous Industries (BOM:539011) Overvalued in 2026?
Based on GuruFocus' analysis, Chennai Ferrous Industries stock appears to be undervalued.
The current stock price of ₹81.55 is trading 10.8% below its estimated GF Value™ of ₹91.42.
GuruFocus considers Chennai Ferrous Industries to be Modestly Undervalued.
Key valuation signals for BOM:539011:
Current Ratio: 3.04 (262% above median its 10-year median of 0.84)
GF Value™: ₹91.42 vs. price of ₹81.55 (10.8% below fair value)
Industry Position: 86.5% above the Steel median (#155 of 634)
No single metric tells the full story. See the BOM:539011 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chennai Ferrous Industries Ltd, incorporated in 2010 and based in Gummidipoondi, Tamil Nadu, India, is engaged in the trading of iron and coal-related products. The company also operates the rental of its sponge iron plant. Its business activities includes providing steel-related commodities and services for metallurgical and industrial applications. The company has diversified its operations into coal trading activities. Chennai Ferrous serves customers prominently in India. The Company's revenue has derived from coal trading activities, supplemented by lease rental income from its Sponge Iron Plant, which has been leased out.
75GF Score
Get the complete analysis for BOM:539011
Current Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
BOM:539011 has been successfully added to your 
