Balu Forge IndustriesNSE:BALUFORGE -0.95%74 Current Ratio is 3.54 as of Mar. 2026, which is 6% above its 10-year median of 3.33. GuruFocus rates NSE:BALUFORGE with a GF Score™ of 74/100 and a GF Value™ of ₹627.05 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 3,073 Industrial Products companies, Balu Forge Industries ranks better than 80.8% 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. Balu Forge Industries's current ratio for the quarter that ended in Mar. 2026 was 3.54.
Balu Forge Industries has a current ratio of 3.54. 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 Balu Forge Industries's Current Ratio or its related term are showing as below:
NSE:BALUFORGE'
s Current Ratio Range Over the Past 10 Years
Min: 1.58 Med: 3.33 Max: 7.2
Current: 3.54
During the past 13 years, Balu Forge Industries's highest Current Ratio was 7.20. The lowest was 1.58. And the median was 3.33.
NSE:BALUFORGE's Current Ratio is ranked better than 80.8% of 3073
companies
in the Industrial Products industry
Industry Median: 1.96
vs NSE:BALUFORGE: 3.54
Balu Forge Industries (NSE:BALUFORGE) 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.
Balu Forge Industries Current Ratio Related Terms
Balu Forge Industries Current Ratio Historical Data
* Premium members only.
The historical data trend for Balu Forge Industries'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.
NSE:BALUFORGE vs CRS, ATI, MLI: Current Ratio Comparison
For the Metal Fabrication subindustry, Balu Forge 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.
Balu Forge Industries Current Ratio vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Balu Forge Industries's Current Ratio distribution charts can be found below:
* The bar in red indicates where Balu Forge 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.
Balu Forge Industries (NSE:BALUFORGE) has a Current Ratio of 3.54 as of Mar. 2026. This is near median its historical median of 3.33. Over the past decade, Balu Forge Industries' Current Ratio has ranged from 1.58 to 7.20. According to the industry distribution chart, Balu Forge Industries ranks #590 out of 3073 companies in the Industrial Products industry, placing it in the top 19.2%.
Is Balu Forge Industries' Current Ratio too high?
Balu Forge Industries' current Current Ratio of 3.54 is near median its 10-year median of 3.33. Over the past 10 years, this metric has ranged from a low of 1.58 to a high of 7.20. The Industrial Products industry median Current Ratio is 1.96. Balu Forge Industries' value of 3.54 is 80.6% above this industry median. Based on the distribution chart, Balu Forge Industries ranks #590 out of 3073 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Balu Forge Industries has a GF Score™ of 74/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Balu Forge Industries' Current Ratio compare to CRS and ATI?
According to the Industrial Products industry distribution chart, Balu Forge Industries ranks #590 out of 3073 companies for Current Ratio. This places Balu Forge Industries in the top 19% of its industry — outperforming the majority of peers. The industry median Current Ratio is 1.96. Balu Forge Industries' value of 3.54 is 80.6% above this benchmark. Historically, Balu Forge Industries' own Current Ratio has ranged from 1.58 to 7.20 over the past decade. While the company's 10-year median is 3.33 vs. the industry median of 1.96, Balu Forge 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 an Industrial Products company?
The median Current Ratio among Industrial Products companies is 1.96, based on 3,073 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. Balu Forge Industries's current Current Ratio of 3.54 is 80.6% 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 Industrial Products industry, the median Current Ratio is 1.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Balu Forge Industries's current Current Ratio is 3.54, which is near median its own 10-year median of 3.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Balu Forge Industries stock overvalued right now?
Based on GuruFocus' analysis, Balu Forge Industries (NSE:BALUFORGE) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹627.05, compared to a current price of ₹465.70 — trading 25.7% below its estimated fair value. The current Current Ratio is 3.54, which is near median its 10-year median of 3.33 and 80.6% above the Industrial Products industry median of 1.96. Balu Forge Industries' overall GF Score™ is 74/100 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 Balu Forge Industries (NSE:BALUFORGE), the current Current Ratio is 3.54 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 Balu Forge Industries (NSE:BALUFORGE) Overvalued in 2026?
Based on GuruFocus' analysis, Balu Forge Industries stock appears to be undervalued.
The current stock price of ₹465.70 is trading 25.7% below its estimated GF Value™ of ₹627.05.
GuruFocus considers Balu Forge Industries to be Modestly Undervalued.
Key valuation signals for NSE:BALUFORGE:
Current Ratio: 3.54 (near median its 10-year median of 3.33)
GF Value™: ₹627.05 vs. price of ₹465.70 (25.7% below fair value)
Industry Position: 80.6% above the Industrial Products median (#590 of 3073)
No single metric tells the full story. See the NSE:BALUFORGE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Balu Forge Industries Ltd is engaged in the business of steel forging. The company is a supplier of crankshafts to Original Equipment Manufacturers (OEMs) in India and other countries. It serves railways; car manufacturers; industrial vehicles; defense; oil and gas; agriculture; pumps and other industries. It has a single operating segment: Manufacturing and selling Steel Forging Products. Geographically, the company derives a majority of its revenue from outside India.
74GF Score
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