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Mehul ColoursBOM:544472 -4.25%21 Current Ratio is 10.70 as of Mar. 2026, which is 180% above its 10-year median of 3.82. GuruFocus rates BOM:544472 with a GF Score™ of 21/100. The stock has 4 warning signs investors should review. Among 1,605 Chemicals companies, Mehul Colours ranks better than 96.45% 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. Mehul Colours's current ratio for the quarter that ended in Mar. 2026 was 10.70.
Mehul Colours has a current ratio of 10.70. 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 Mehul Colours's Current Ratio or its related term are showing as below:
BOM:544472'
s Current Ratio Range Over the Past 10 Years
Min: 2.18 Med: 3.82 Max: 10.7
Current: 10.7
During the past 5 years, Mehul Colours's highest Current Ratio was 10.70. The lowest was 2.18. And the median was 3.82.
BOM:544472's Current Ratio is ranked better than 96.45% of 1605
companies
in the Chemicals industry
Industry Median: 1.87
vs BOM:544472: 10.70
Mehul Colours (BOM:544472) 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.
Mehul Colours Current Ratio Related Terms
Mehul Colours Current Ratio Historical Data
* Premium members only.
The historical data trend for Mehul Colours'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:544472 vs LIN, SHW, ECL: Current Ratio Comparison
For the Specialty Chemicals subindustry, Mehul Colours'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.
Mehul Colours Current Ratio vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Mehul Colours's Current Ratio distribution charts can be found below:
* The bar in red indicates where Mehul Colours'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.
Mehul Colours (BOM:544472) has a Current Ratio of 10.70 as of Mar. 2026. This is 180% above median its historical median of 3.82. Over the past decade, Mehul Colours' Current Ratio has ranged from 2.18 to 10.70. According to the industry distribution chart, Mehul Colours ranks #57 out of 1605 companies in the Chemicals industry, placing it in the top 3.6%.
Is Mehul Colours' Current Ratio too high?
Mehul Colours' current Current Ratio of 10.70 is 180% above median its 10-year median of 3.82. Over the past 10 years, this metric has ranged from a low of 2.18 to a high of 10.70. The Chemicals industry median Current Ratio is 1.87. Mehul Colours' value of 10.70 is 472.2% above this industry median. Based on the distribution chart, Mehul Colours ranks #57 out of 1605 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Mehul Colours has a GF Score™ of 21/100, reflecting its overall financial health beyond just this single metric.
How does Mehul Colours' Current Ratio compare to LIN and SHW?
According to the Chemicals industry distribution chart, Mehul Colours ranks #57 out of 1605 companies for Current Ratio. This places Mehul Colours in the top 4% of its industry — outperforming the majority of peers. The industry median Current Ratio is 1.87. Mehul Colours' value of 10.70 is 472.2% above this benchmark. Historically, Mehul Colours' own Current Ratio has ranged from 2.18 to 10.70 over the past decade. While the company's 10-year median is 3.82 vs. the industry median of 1.87, Mehul Colours 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 Chemicals company?
The median Current Ratio among Chemicals companies is 1.87, based on 1,605 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. Mehul Colours's current Current Ratio of 10.70 is 472.2% 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 Chemicals industry, the median Current Ratio is 1.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mehul Colours's current Current Ratio is 10.70, which is 180% above median its own 10-year median of 3.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mehul Colours stock overvalued right now?
Mehul Colours (BOM:544472) has a current Current Ratio of 10.70. The current Current Ratio is 10.70, which is 180% above median its 10-year median of 3.82 and 472.2% above the Chemicals industry median of 1.87. Mehul Colours' overall GF Score™ is 21/100 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 Mehul Colours (BOM:544472), the current Current Ratio is 10.70 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.
Mehul Colours Ltd is engaged in the manufacturing of masterbatches, which are used in the plastics industry to impart colour and enhance the functional properties of plastic products. Masterbatches are concentrated mixtures of pigments and additives that are uniformly dispersed in polymer carriers, facilitating the effective integration of colour and performance-enhancing properties into plastic products. In addition to manufacturing masterbatches, it is also engaged in the sale of pigments, which are blended by the company to create customized pigment solutions tailored to specific industry and customer requirements.
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