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Gautam GemsBOM:540936 -0.33%66 Current Ratio is 3.28 as of Mar. 2026, which is 2% above its 10-year median of 3.23. GuruFocus rates BOM:540936 with a GF Score™ of 66/100 and a GF Value™ of ₹5.50 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 1,133 Retail - Cyclical companies, Gautam Gems ranks better than 82.79% 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. Gautam Gems's current ratio for the quarter that ended in Mar. 2026 was 3.28.
Gautam Gems has a current ratio of 3.28. 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 Gautam Gems's Current Ratio or its related term are showing as below:
BOM:540936'
s Current Ratio Range Over the Past 10 Years
Min: 0.91 Med: 3.23 Max: 54
Current: 3.28
During the past 13 years, Gautam Gems's highest Current Ratio was 54.00. The lowest was 0.91. And the median was 3.23.
BOM:540936's Current Ratio is ranked better than 82.79% of 1133
companies
in the Retail - Cyclical industry
Industry Median: 1.57
vs BOM:540936: 3.28
Gautam Gems (BOM:540936) 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.
Gautam Gems Current Ratio Related Terms
Gautam Gems Current Ratio Historical Data
* Premium members only.
The historical data trend for Gautam Gems'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 Luxury Goods subindustry, Gautam Gems'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.
Gautam Gems Current Ratio vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Gautam Gems's Current Ratio distribution charts can be found below:
* The bar in red indicates where Gautam Gems'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.
Gautam Gems (BOM:540936) has a Current Ratio of 3.28 as of Mar. 2026. This is near median its historical median of 3.23. Over the past decade, Gautam Gems' Current Ratio has ranged from 0.91 to 54.00. According to the industry distribution chart, Gautam Gems ranks #195 out of 1133 companies in the Retail - Cyclical industry, placing it in the top 17.2%.
Is Gautam Gems' Current Ratio too high?
Gautam Gems' current Current Ratio of 3.28 is near median its 10-year median of 3.23. Over the past 10 years, this metric has ranged from a low of 0.91 to a high of 54.00. The Retail - Cyclical industry median Current Ratio is 1.57. Gautam Gems' value of 3.28 is 108.9% above this industry median. Based on the distribution chart, Gautam Gems ranks #195 out of 1133 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Gautam Gems has a GF Score™ of 66/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Gautam Gems' Current Ratio compare to TPR?
According to the Retail - Cyclical industry distribution chart, Gautam Gems ranks #195 out of 1133 companies for Current Ratio. This places Gautam Gems in the top 17% of its industry — outperforming the majority of peers. The industry median Current Ratio is 1.57. Gautam Gems' value of 3.28 is 108.9% above this benchmark. Historically, Gautam Gems' own Current Ratio has ranged from 0.91 to 54.00 over the past decade. While the company's 10-year median is 3.23 vs. the industry median of 1.57, Gautam Gems 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 Retail - Cyclical company?
The median Current Ratio among Retail - Cyclical companies is 1.57, based on 1,133 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. Gautam Gems's current Current Ratio of 3.28 is 108.9% 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 Retail - Cyclical industry, the median Current Ratio is 1.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gautam Gems's current Current Ratio is 3.28, which is near median its own 10-year median of 3.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gautam Gems stock overvalued right now?
Based on GuruFocus' analysis, Gautam Gems (BOM:540936) is currently considered Possible Value Trap. The stock's GF Value™ is ₹5.50, compared to a current price of ₹3.05 — trading 44.5% below its estimated fair value. The current Current Ratio is 3.28, which is near median its 10-year median of 3.23 and 108.9% above the Retail - Cyclical industry median of 1.57. Gautam Gems' overall GF Score™ is 66/100 with 5 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 Gautam Gems (BOM:540936), the current Current Ratio is 3.28 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 Gautam Gems (BOM:540936) Overvalued in 2026?
Based on GuruFocus' analysis, Gautam Gems stock appears to be undervalued.
The current stock price of ₹3.05 is trading 44.5% below its estimated GF Value™ of ₹5.50.
GuruFocus considers Gautam Gems to be Possible Value Trap.
Key valuation signals for BOM:540936:
Current Ratio: 3.28 (near median its 10-year median of 3.23)
GF Value™: ₹5.50 vs. price of ₹3.05 (44.5% below fair value)
Industry Position: 108.9% above the Retail - Cyclical median (#195 of 1133)
No single metric tells the full story. See the BOM:540936 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gautam Gems Ltd is an India-based company engaged in the trading of rough and polished diamonds. It offers a broad and diverse range of diamonds in various shapes, cuts, sizes, and colors, ranging from 0.18 carats to over 15 carats, with grading precision tailored to client specifications. The company's operation spans the full lifecycle of the diamond supply chain, from the procurement of rough diamonds to the processing, grading, and sale of finished polished stones. Its client portfolio includes wholesalers, manufacturers, and design studios located globally. Operations are conducted through both owned and contract-based units. Additionally, the company also offers gold jewelry.
66GF Score
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