Bihar Sponge Iron (BOM:500058) Inventory Turnover: 4.08 (As of Mar. 2026)

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BOM:500058 Bihar Sponge Iron Ltd BOM:500058
53 GF Score
Price ₹12.21
GF Value ₹10.34
Valuation Modestly Overvalued
! 5 Warning Signs
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What is Bihar Sponge Iron Inventory Turnover?

Bihar Sponge Iron BOM:500058 -2.86% 53 Inventory Turnover is 4.08 as of Mar. 2026. GuruFocus rates BOM:500058 with a GF Score™ of 53/100 and a GF Value™ of ₹10.34 (Modestly Overvalued). The stock has 5 warning signs investors should review.

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Bihar Sponge Iron's Cost of Goods Sold for the three months ended in Mar. 2026 was ₹164 Mil. Bihar Sponge Iron's Average Total Inventories for the quarter that ended in Mar. 2026 was ₹40 Mil. Bihar Sponge Iron's Inventory Turnover for the quarter that ended in Mar. 2026 was 4.08.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Bihar Sponge Iron's Days Inventory for the three months ended in Mar. 2026 was 22.37.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Bihar Sponge Iron's Inventory-to-Revenue for the quarter that ended in Mar. 2026 was 0.24.


Bihar Sponge Iron  (BOM:500058) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Bihar Sponge Iron's Days Inventory for the three months ended in Mar. 2026 is calculated as:

Days Inventory =Average Total Inventories (Q: Mar. 2026 )/Cost of Goods Sold (Q: Mar. 2026 )*Days in Period
=40.171/163.836*365 / 4
=22.37

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Bihar Sponge Iron's Inventory to Revenue for the quarter that ended in Mar. 2026 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=40.171 / 169.197
=0.24

* 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.


Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.


Bihar Sponge Iron Inventory Turnover Related Terms


Bihar Sponge Iron Inventory Turnover Historical Data

* Premium members only.

The historical data trend for Bihar Sponge Iron's Inventory Turnover 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.

Bihar Sponge Iron Inventory Turnover Chart

Bihar Sponge Iron Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.02 7.60 3.26 4.72 9.95

Bihar Sponge Iron Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Inventory Turnover Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.37 1.70 2.02 2.61 4.08
BOM:500058
53GF Score
Bihar Sponge Iron Ltd BOM:500058
Inventory Turnover is just one metric. See GF Score™, valuation, warning signs, and more.
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Bihar Sponge Iron Inventory Turnover Calculation

Bihar Sponge Iron's Inventory Turnover for the fiscal year that ended in Mar. 2026 is calculated as

Inventory Turnover (A: Mar. 2026 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Mar. 2026 ) / ((Total Inventories (A: Mar. 2025 ) + Total Inventories (A: Mar. 2026 )) / count )
=2239.513 / ((410.045 + 40.171) / 2 )
=2239.513 / 225.108
=9.95

Bihar Sponge Iron's Inventory Turnover for the quarter that ended in Mar. 2026 is calculated as

Inventory Turnover (Q: Mar. 2026 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Mar. 2026 ) / ((Total Inventories (Q: Dec. 2025 ) + Total Inventories (Q: Mar. 2026 )) / count )
=163.836 / ((0 + 40.171) / 1 )
=163.836 / 40.171
=4.08

* 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.

Frequently Asked Questions Learn more about Inventory Turnover →
What does a Inventory Turnover of 4.08 mean?
Bihar Sponge Iron (BOM:500058) has a Inventory Turnover of 4.08 as of Mar. 2026. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Bihar Sponge Iron and its competitors.
Is Bihar Sponge Iron's Inventory Turnover too high?
Bihar Sponge Iron's current Inventory Turnover is 4.08. Overall, Bihar Sponge Iron has a GF Score™ of 53/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Bihar Sponge Iron's Inventory Turnover compare to NUE and STLD?
Bihar Sponge Iron's Inventory Turnover of 4.08 can be compared against companies in the Steel industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Inventory Turnover for a Steel company?
A good Inventory Turnover depends on the Steel industry context. However, Inventory Turnover should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Inventory Turnover mean?
A high Inventory Turnover can signal that a stock is expensive relative to its fundamentals. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Bihar Sponge Iron and its competitors. Bihar Sponge Iron's current Inventory Turnover is 4.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bihar Sponge Iron stock overvalued right now?
Based on GuruFocus' analysis, Bihar Sponge Iron (BOM:500058) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹10.34, compared to a current price of ₹12.21 — trading 18.1% above its estimated fair value. The current Inventory Turnover is 4.08. Bihar Sponge Iron's overall GF Score™ is 53/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Inventory Turnover calculated?
Inventory Turnover is calculated from a company's financial statements. For Bihar Sponge Iron (BOM:500058), the current Inventory Turnover is 4.08 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 Bihar Sponge Iron (BOM:500058) Overvalued in 2026?

Based on GuruFocus' analysis, Bihar Sponge Iron stock appears to be overvalued. The current stock price of ₹12.21 is trading 18.1% above its estimated GF Value™ of ₹10.34. GuruFocus considers Bihar Sponge Iron to be Modestly Overvalued.

Key valuation signals for BOM:500058:

  • Inventory Turnover: 4.08
  • GF Value™: ₹10.34 vs. price of ₹12.21 (18.1% above fair value)
  • GF Score™: 53/100 with 5 warning signs

No single metric tells the full story. See the BOM:500058 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Bihar Sponge Iron Business Description

Address Umesh Nagar, Chandil, District Saraikela, Kharsawan, JH, IND, 832401
Bihar Sponge Iron Ltd is India's first merchant sponge iron plant located in Jharkhand. It produces Direct Reduced Iron, commonly known as sponge iron, using indigenous iron ore and non-coking coal. Its plant uses coal-based rotary kiln technology for sponge iron production, with additional facilities such as crushing, sizing, and magnetic separation for raw materials. The plant is strategically located with excellent connectivity to many cities and transportation infrastructure. Bihar Sponge Iron also operates captive power plants to meet its energy needs efficiently. The company's sponge iron serves as a substitute for scrap in steelmaking electric arc and induction furnaces.
53GF Score

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Inventory Turnover is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹12.21
Price
₹10.34
GF Value