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. Prakash Industries's current ratio for the quarter that ended in Mar. 2026 was 1.70.
Prakash Industries has a current ratio of 1.70. It generally indicates good short-term financial strength.
The historical rank and industry rank for Prakash Industries's Current Ratio or its related term are showing as below:
NSE:PRAKASH'
s Current Ratio Range Over the Past 10 Years
Min: 0.7 Med: 1.01 Max: 1.7
Current: 1.7
During the past 13 years, Prakash Industries's highest Current Ratio was 1.70. The lowest was 0.70. And the median was 1.01.
NSE:PRAKASH's Current Ratio is ranked better than 51.81% of 635
companies
in the Steel industry
Industry Median: 1.63
vs NSE:PRAKASH: 1.70
Prakash Industries (NSE:PRAKASH) 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.
Prakash Industries Current Ratio Related Terms
Prakash Industries Current Ratio Historical Data
* Premium members only.
The historical data trend for Prakash 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:PRAKASH vs NUE, STLD, RS: Current Ratio Comparison
For the Steel subindustry, Prakash 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.
Prakash Industries Current Ratio vs Steel Industry
For the Steel industry and Basic Materials sector, Prakash Industries's Current Ratio distribution charts can be found below:
* The bar in red indicates where Prakash 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.
Prakash Industries (NSE:PRAKASH) has a Current Ratio of 1.70 as of Mar. 2026. This is 68% above median its historical median of 1.01. Over the past decade, Prakash Industries' Current Ratio has ranged from 0.70 to 1.70. According to the industry distribution chart, Prakash Industries ranks #306 out of 635 companies in the Steel industry, placing it in the top 48.2%.
Is Prakash Industries' Current Ratio too high?
Prakash Industries' current Current Ratio of 1.70 is 68% above median its 10-year median of 1.01. Over the past 10 years, this metric has ranged from a low of 0.70 to a high of 1.70. The Steel industry median Current Ratio is 1.63. Prakash Industries' value of 1.70 is 4.3% above this industry median. Based on the distribution chart, Prakash Industries ranks #306 out of 635 companies in the Steel industry, which is above the industry midpoint. Overall, Prakash Industries has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Prakash Industries' Current Ratio compare to NUE and STLD?
According to the Steel industry distribution chart, Prakash Industries ranks #306 out of 635 companies for Current Ratio. This puts Prakash Industries in the upper half of its industry. The industry median Current Ratio is 1.63. Prakash Industries' value of 1.70 is 4.3% above this benchmark. Historically, Prakash Industries' own Current Ratio has ranged from 0.70 to 1.70 over the past decade. While the company's 10-year median is 1.01 vs. the industry median of 1.63, Prakash 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 a Steel company?
The median Current Ratio among Steel companies is 1.63, based on 635 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. Prakash Industries's current Current Ratio of 1.70 is 4.3% 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 Steel industry, the median Current Ratio is 1.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Prakash Industries's current Current Ratio is 1.70, which is 68% above median its own 10-year median of 1.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Prakash Industries stock overvalued right now?
Based on GuruFocus' analysis, Prakash Industries (NSE:PRAKASH) is currently considered Fairly Valued. The stock's GF Value™ is ₹144.30, compared to a current price of ₹139.27 — trading 3.5% below its estimated fair value. The current Current Ratio is 1.70, which is 68% above median its 10-year median of 1.01 and 4.3% above the Steel industry median of 1.63. Prakash Industries' overall GF Score™ is 78/100 with 6 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 Prakash Industries (NSE:PRAKASH), the current Current Ratio is 1.70 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.
Is Prakash Industries (NSE:PRAKASH) Overvalued in 2026?
Based on GuruFocus' analysis, Prakash Industries stock appears to be undervalued.
The current stock price of ₹139.27 is trading 3.5% below its estimated GF Value™ of ₹144.30.
GuruFocus considers Prakash Industries to be Fairly Valued.
Key valuation signals for NSE:PRAKASH:
Current Ratio: 1.70 (68% above median its 10-year median of 1.01)
GF Value™: ₹144.30 vs. price of ₹139.27 (3.5% below fair value)
Industry Position: 4.3% above the Steel median (#306 of 635)
No single metric tells the full story. See the NSE:PRAKASH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Prakash Industries Ltd is an integrated steel and power company, specializing in the manufacturing and sale of high-quality iron and steel products such as sponge iron, wire rods, TMT bars, and ferroalloys. The company operates an integrated steel plant in Chhattisgarh, utilizing cutting-edge coal-based sponge iron production techniques. Additionally, the company has forward integration with facilities producing value-added steel products and operates a captive power generation plant, making it self-reliant in energy needs. Focused on innovation, cost efficiency, and sustainable growth, the company delivers competitive products while expanding its footprint across India's steel and power sectors.
78GF Score
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