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Smruthi OrganicsBOM:540686 -1.04%68 Current Ratio is 1.98 as of Mar. 2026, which is 9% above its 10-year median of 1.82. GuruFocus rates BOM:540686 with a GF Score™ of 68/100 and a GF Value™ of ₹107.46 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 1,000 Drug Manufacturers companies, Smruthi Organics ranks worse than 50.5% 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. Smruthi Organics's current ratio for the quarter that ended in Mar. 2026 was 1.98.
Smruthi Organics has a current ratio of 1.98. It generally indicates good short-term financial strength.
The historical rank and industry rank for Smruthi Organics's Current Ratio or its related term are showing as below:
BOM:540686'
s Current Ratio Range Over the Past 10 Years
Min: 1.04 Med: 1.82 Max: 3.37
Current: 1.98
During the past 13 years, Smruthi Organics's highest Current Ratio was 3.37. The lowest was 1.04. And the median was 1.82.
BOM:540686's Current Ratio is ranked worse than 50.5% of 1000
companies
in the Drug Manufacturers industry
Industry Median: 2
vs BOM:540686: 1.98
Smruthi Organics (BOM:540686) 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.
Smruthi Organics Current Ratio Related Terms
Smruthi Organics Current Ratio Historical Data
* Premium members only.
The historical data trend for Smruthi Organics'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.
For the Drug Manufacturers - Specialty & Generic subindustry, Smruthi Organics'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.
Smruthi Organics Current Ratio vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Smruthi Organics's Current Ratio distribution charts can be found below:
* The bar in red indicates where Smruthi Organics'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.
Smruthi Organics (BOM:540686) has a Current Ratio of 1.98 as of Mar. 2026. This is near median its historical median of 1.82. Over the past decade, Smruthi Organics' Current Ratio has ranged from 1.04 to 3.37. According to the industry distribution chart, Smruthi Organics ranks #505 out of 1000 companies in the Drug Manufacturers industry, placing it in the top 50.5%.
Is Smruthi Organics' Current Ratio too high?
Smruthi Organics' current Current Ratio of 1.98 is near median its 10-year median of 1.82. Over the past 10 years, this metric has ranged from a low of 1.04 to a high of 3.37. The Drug Manufacturers industry median Current Ratio is 2.00. Smruthi Organics' value of 1.98 is 1% below this industry median. Based on the distribution chart, Smruthi Organics ranks #505 out of 1000 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Smruthi Organics has a GF Score™ of 68/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Smruthi Organics' Current Ratio compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Smruthi Organics ranks #505 out of 1000 companies for Current Ratio. This places Smruthi Organics in the lower half of its industry. The industry median Current Ratio is 2.00. Smruthi Organics' value of 1.98 is 1% below this benchmark. Historically, Smruthi Organics' own Current Ratio has ranged from 1.04 to 3.37 over the past decade. While the company's 10-year median is 1.82 vs. the industry median of 2.00, Smruthi Organics 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 a Drug Manufacturers company?
The median Current Ratio among Drug Manufacturers companies is 2.00, based on 1,000 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. Smruthi Organics's current Current Ratio of 1.98 is 1% 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 Drug Manufacturers industry, the median Current Ratio is 2.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Smruthi Organics's current Current Ratio is 1.98, which is near median its own 10-year median of 1.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Smruthi Organics stock overvalued right now?
Based on GuruFocus' analysis, Smruthi Organics (BOM:540686) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹107.46, compared to a current price of ₹118.80 — trading 10.6% above its estimated fair value. The current Current Ratio is 1.98, which is near median its 10-year median of 1.82 and 1% below the Drug Manufacturers industry median of 2.00. Smruthi Organics' overall GF Score™ is 68/100 with 4 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 Smruthi Organics (BOM:540686), the current Current Ratio is 1.98 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 Smruthi Organics (BOM:540686) Overvalued in 2026?
Based on GuruFocus' analysis, Smruthi Organics stock appears to be overvalued.
The current stock price of ₹118.80 is trading 10.6% above its estimated GF Value™ of ₹107.46.
GuruFocus considers Smruthi Organics to be Modestly Overvalued.
Key valuation signals for BOM:540686:
Current Ratio: 1.98 (near median its 10-year median of 1.82)
GF Value™: ₹107.46 vs. price of ₹118.80 (10.6% above fair value)
Industry Position: 1% below the Drug Manufacturers median (#505 of 1000)
No single metric tells the full story. See the BOM:540686 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Smruthi Organics Ltd is engaged in the manufacture of bulk drugs and drug intermediates (API Products). The product portfolio includes Amlodipine Besilate, Amlodipine Base, S-Amlodipine Besilate, S-Amlodipine Base, Norfloxacin, Metformin HCI, Diloxanide Furoate, Phthaloyl Amlodipine, Pantoprazole Sodium, Pefloxacin Mesylate Dihydrate, Telmisartan, Losartan Potassium, and many more. It has two reportable business segments: Bulk Drugs and Drugs Intermediates (API), and Formulation. It generates the majority of its revenue from the Bulk Drugs and Drugs Intermediates (API) segment. Geographically, the company generates maximum revenue from outside India through exports, and the rest from its business within India.
68GF Score
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