Primo ChemicalsNSE:PRIMO -1.39%56 Current Ratio is 0.56 as of Mar. 2026, which is 2% below its 10-year median of 0.57. GuruFocus rates NSE:PRIMO with a GF Score™ of 56/100 and a GF Value™ of ₹46.19 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 1,604 Chemicals companies, Primo Chemicals ranks worse than 95.26% 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. Primo Chemicals's current ratio for the quarter that ended in Mar. 2026 was 0.56.
Primo Chemicals has a current ratio of 0.56. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Primo Chemicals has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.
The historical rank and industry rank for Primo Chemicals's Current Ratio or its related term are showing as below:
NSE:PRIMO'
s Current Ratio Range Over the Past 10 Years
Min: 0.23 Med: 0.57 Max: 0.83
Current: 0.56
During the past 13 years, Primo Chemicals's highest Current Ratio was 0.83. The lowest was 0.23. And the median was 0.57.
NSE:PRIMO's Current Ratio is ranked worse than 95.26% of 1604
companies
in the Chemicals industry
Industry Median: 1.89
vs NSE:PRIMO: 0.56
Primo Chemicals (NSE:PRIMO) 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.
Primo Chemicals Current Ratio Related Terms
Primo Chemicals Current Ratio Historical Data
* Premium members only.
The historical data trend for Primo Chemicals'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 Chemicals subindustry, Primo Chemicals'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.
Primo Chemicals Current Ratio vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Primo Chemicals's Current Ratio distribution charts can be found below:
* The bar in red indicates where Primo Chemicals'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.
Primo Chemicals (NSE:PRIMO) has a Current Ratio of 0.56 as of Mar. 2026. This is near median its historical median of 0.57. Over the past decade, Primo Chemicals' Current Ratio has ranged from 0.23 to 0.83. According to the industry distribution chart, Primo Chemicals ranks #1528 out of 1604 companies in the Chemicals industry, placing it in the top 95.3%.
Is Primo Chemicals' Current Ratio too high?
Primo Chemicals' current Current Ratio of 0.56 is near median its 10-year median of 0.57. Over the past 10 years, this metric has ranged from a low of 0.23 to a high of 0.83. The Chemicals industry median Current Ratio is 1.89. Primo Chemicals' value of 0.56 is 70.4% below this industry median. Based on the distribution chart, Primo Chemicals ranks #1528 out of 1604 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Primo Chemicals has a GF Score™ of 56/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Primo Chemicals' Current Ratio compare to DOW?
According to the Chemicals industry distribution chart, Primo Chemicals ranks #1528 out of 1604 companies for Current Ratio. This places Primo Chemicals in the lower half of its industry. The industry median Current Ratio is 1.89. Primo Chemicals' value of 0.56 is 70.4% below this benchmark. Historically, Primo Chemicals' own Current Ratio has ranged from 0.23 to 0.83 over the past decade. While the company's 10-year median is 0.57 vs. the industry median of 1.89, Primo Chemicals has consistently been below 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. Primo Chemicals's current Current Ratio of 0.56 is 70.4% below 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. Primo Chemicals's current Current Ratio is 0.56, which is near median its own 10-year median of 0.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Primo Chemicals stock overvalued right now?
Based on GuruFocus' analysis, Primo Chemicals (NSE:PRIMO) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹46.19, compared to a current price of ₹24.11 — trading 47.8% below its estimated fair value. The current Current Ratio is 0.56, which is near median its 10-year median of 0.57 and 70.4% below the Chemicals industry median of 1.89. Primo Chemicals' overall GF Score™ is 56/100 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 Primo Chemicals (NSE:PRIMO), the current Current Ratio is 0.56 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 Primo Chemicals (NSE:PRIMO) Overvalued in 2026?
Based on GuruFocus' analysis, Primo Chemicals stock appears to be undervalued.
The current stock price of ₹24.11 is trading 47.8% below its estimated GF Value™ of ₹46.19.
GuruFocus considers Primo Chemicals to be Significantly Undervalued.
Key valuation signals for NSE:PRIMO:
Current Ratio: 0.56 (near median its 10-year median of 0.57)
GF Value™: ₹46.19 vs. price of ₹24.11 (47.8% below fair value)
Industry Position: 70.4% below the Chemicals median (#1528 of 1604)
No single metric tells the full story. See the NSE:PRIMO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Primo Chemicals Ltd is engaged in the manufacturing of chemicals. Its product portfolio includes Caustic Soda Lye and its by-products are Hydrochloric Acid, Liquid Chlorine, Sodium Hypochlorite, and Hydrogen gas. The company generates revenue from the sale of goods and trading sales.
56GF Score
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