Gujarat Narmada Valley Fertilizers & Chemicals has a current ratio of 5.91. 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.
NSE:GNFC's Current Ratio is ranked better than 90.21% of 1604
companies
in the Chemicals industry
Industry Median: 1.89
vs NSE:GNFC: 5.91
Gujarat Narmada Valley Fertilizers & Chemicals (NSE:GNFC) 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.
Gujarat Narmada Valley Fertilizers & Chemicals Current Ratio Related Terms
Gujarat Narmada Valley Fertilizers & Chemicals Current Ratio Historical Data
* 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.
Gujarat Narmada Valley Fertilizers & Chemicals Current Ratio Chart
Gujarat Narmada Valley Fertilizers & Chemicals Annual Data
* 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.
Gujarat Narmada Valley Fertilizers & Chemicals Current Ratio vs Chemicals Industry
* 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.
Gujarat Narmada Valley Fertilizers & Chemicals (NSE:GNFC) has a Current Ratio of 5.91 as of Mar. 2026. This is 65% above median its historical median of 3.58. Over the past decade, Gujarat Narmada Valley Fertilizers & Chemicals' Current Ratio has ranged from 1.17 to 5.91. According to the industry distribution chart, Gujarat Narmada Valley Fertilizers & Chemicals ranks #157 out of 1604 companies in the Chemicals industry, placing it in the top 9.8%.
Is Gujarat Narmada Valley Fertilizers & Chemicals' Current Ratio too high?
Gujarat Narmada Valley Fertilizers & Chemicals' current Current Ratio of 5.91 is 65% above median its 10-year median of 3.58. Over the past 10 years, this metric has ranged from a low of 1.17 to a high of 5.91. The Chemicals industry median Current Ratio is 1.89. Gujarat Narmada Valley Fertilizers & Chemicals' value of 5.91 is 212.7% above this industry median. Based on the distribution chart, Gujarat Narmada Valley Fertilizers & Chemicals ranks #157 out of 1604 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Gujarat Narmada Valley Fertilizers & Chemicals has a GF Score™ of 75/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Gujarat Narmada Valley Fertilizers & Chemicals' Current Ratio compare to DOW?
According to the Chemicals industry distribution chart, Gujarat Narmada Valley Fertilizers & Chemicals ranks #157 out of 1604 companies for Current Ratio. This places Gujarat Narmada Valley Fertilizers & Chemicals in the top 10% of its industry — outperforming the majority of peers. The industry median Current Ratio is 1.89. Gujarat Narmada Valley Fertilizers & Chemicals' value of 5.91 is 212.7% above this benchmark. Historically, Gujarat Narmada Valley Fertilizers & Chemicals' own Current Ratio has ranged from 1.17 to 5.91 over the past decade. While the company's 10-year median is 3.58 vs. the industry median of 1.89, Gujarat Narmada Valley Fertilizers & Chemicals 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 1.89, based on 1,604 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. Gujarat Narmada Valley Fertilizers & Chemicals's current Current Ratio of 5.91 is 212.7% 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 1.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gujarat Narmada Valley Fertilizers & Chemicals's current Current Ratio is 5.91, which is 65% above median its own 10-year median of 3.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gujarat Narmada Valley Fertilizers & Chemicals stock overvalued right now?
Based on GuruFocus' analysis, Gujarat Narmada Valley Fertilizers & Chemicals (NSE:GNFC) is currently considered Fairly Valued. The stock's GF Value™ is ₹528.32, compared to a current price of ₹502.45 — trading 4.9% below its estimated fair value. The current Current Ratio is 5.91, which is 65% above median its 10-year median of 3.58 and 212.7% above the Chemicals industry median of 1.89. Gujarat Narmada Valley Fertilizers & Chemicals' overall GF Score™ is 75/100 with 8 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 Gujarat Narmada Valley Fertilizers & Chemicals (NSE:GNFC), the current Current Ratio is 5.91 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 Gujarat Narmada Valley Fertilizers & Chemicals (NSE:GNFC) Overvalued in 2026?
Based on GuruFocus' analysis, Gujarat Narmada Valley Fertilizers & Chemicals stock appears to be undervalued.
The current stock price of ₹502.45 is trading 4.9% below its estimated GF Value™ of ₹528.32.
GuruFocus considers Gujarat Narmada Valley Fertilizers & Chemicals to be Fairly Valued.
Key valuation signals for NSE:GNFC:
Current Ratio: 5.91 (65% above median its 10-year median of 3.58)
GF Value™: ₹528.32 vs. price of ₹502.45 (4.9% below fair value)
Industry Position: 212.7% above the Chemicals median (#157 of 1604)
No single metric tells the full story. See the NSE:GNFC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gujarat Narmada Valley Fertilizers & Chemicals Business Description
Gujarat Narmada Valley Fertilizers & Chemicals Ltd, or GNFC, is a firm engaged in the manufacturing and selling of fertilizers, industrial chemical products and rendering Information Technology services. It operates in three business segments including fertilizer segment and chemicals segment and others. The company generates the majority of its revenues through the sale of chemicals.
75GF Score
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