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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. Rama Steel Tubes's current ratio for the quarter that ended in Jun. 2026 was 0.00.
Rama Steel Tubes 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 Rama Steel Tubes 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 Rama Steel Tubes's Current Ratio or its related term are showing as below:
BOM:539309'
s Current Ratio Range Over the Past 10 Years
Min: 1.34 Med: 1.58 Max: 2.12
Current: 1.8
During the past 12 years, Rama Steel Tubes's highest Current Ratio was 2.12. The lowest was 1.34. And the median was 1.58.
BOM:539309's Current Ratio is ranked better than 56.87% of 633
companies
in the Steel industry
Industry Median: 1.6
vs BOM:539309: 1.80
Rama Steel Tubes (BOM:539309) 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.
Rama Steel Tubes Current Ratio Related Terms
Rama Steel Tubes Current Ratio Historical Data
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The historical data trend for Rama Steel Tubes'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:539309 vs NUE, STLD, RS: Current Ratio Comparison
For the Steel subindustry, Rama Steel Tubes'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.
Rama Steel Tubes Current Ratio vs Steel Industry
For the Steel industry and Basic Materials sector, Rama Steel Tubes's Current Ratio distribution charts can be found below:
* The bar in red indicates where Rama Steel Tubes'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.
Rama Steel Tubes (BOM:539309) has a Current Ratio of 0.00 as of Jun. 2026. Over the past decade, Rama Steel Tubes' Current Ratio has ranged from 1.34 to 2.12. According to the industry distribution chart, Rama Steel Tubes ranks #273 out of 633 companies in the Steel industry, placing it in the top 43.1%.
Is Rama Steel Tubes' Current Ratio too high?
Rama Steel Tubes' current Current Ratio is 0.00. Over the past 10 years, this metric has ranged from a low of 1.34 to a high of 2.12. Based on the distribution chart, Rama Steel Tubes ranks #273 out of 633 companies in the Steel industry, which is above the industry midpoint. Overall, Rama Steel Tubes has a GF Score™ of 65/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Rama Steel Tubes' Current Ratio compare to NUE and STLD?
According to the Steel industry distribution chart, Rama Steel Tubes ranks #273 out of 633 companies for Current Ratio. This puts Rama Steel Tubes in the upper half of its industry. The industry median Current Ratio is 1.60. Historically, Rama Steel Tubes' own Current Ratio has ranged from 1.34 to 2.12 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 Steel company?
The median Current Ratio among Steel companies is 1.60, based on 633 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 Steel industry, the median Current Ratio is 1.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rama Steel Tubes'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 Rama Steel Tubes stock overvalued right now?
Based on GuruFocus' analysis, Rama Steel Tubes (BOM:539309) is currently considered Possible Value Trap. The stock's GF Value™ is ₹6.91, compared to a current price of ₹4.24 — trading 38.6% below its estimated fair value. The current Current Ratio is 0.00. Rama Steel Tubes' overall GF Score™ is 65/100 with 7 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 Rama Steel Tubes (BOM:539309), the current Current Ratio is 0.00 as of Jun. 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 Rama Steel Tubes (BOM:539309) Overvalued in 2026?
Based on GuruFocus' analysis, Rama Steel Tubes stock appears to be undervalued.
The current stock price of ₹4.24 is trading 38.6% below its estimated GF Value™ of ₹6.91.
GuruFocus considers Rama Steel Tubes to be Possible Value Trap.
Key valuation signals for BOM:539309:
Current Ratio: 0.00
GF Value™: ₹6.91 vs. price of ₹4.24 (38.6% below fair value)
No single metric tells the full story. See the BOM:539309 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rama Steel Tubes Ltd is a manufacturer and exporter of steel pipes, steel tubes, galvanized pipes, fence pipes, electrical conduit pipes, scaffolding fittings, hollow sections, square steel pipes, and square steel tubes. It also manufactures and exports hollow sections for the automobile industry, including highway and street lighting poles, as well as traffic signal poles. Its segments include; Manufacturing of Steel Pipes which derives maximum revenue, and Trading of Building Material and Steel Products. Geographically, the company caters to both, the Indian and the international markets, and derives a majority of its revenue from its business in India.
65GF Score
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