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The zones of discrimination for M-Score is as such:
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
Warning Sign:
Beneish M-Score 5.78 higher than -1.78, which implies that the company might have manipulated its financial results.
The historical rank and industry rank for Shah Alloys's Beneish M-Score or its related term are showing as below:
BOM:513436'
s Beneish M-Score Range Over the Past 10 Years
Min: -6.6 Med: -2.9 Max: 5.78
Current: 5.78
During the past 13 years, the highest Beneish M-Score of Shah Alloys was 5.78. The lowest was -6.60. And the median was -2.90.
Shah Alloys Beneish M-Score Related Terms
Shah Alloys Beneish M-Score Historical Data
* Premium members only.
The historical data trend for Shah Alloys's Beneish M-Score 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.
BOM:513436 vs NUE, STLD, RS: Beneish M-Score Comparison
For the Steel subindustry, Shah Alloys's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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.
Shah Alloys Beneish M-Score vs Steel Industry
For the Steel industry and Basic Materials sector, Shah Alloys's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Shah Alloys's Beneish M-Score falls into.
The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.
The M-Score Variables:
The M-score of Shah Alloys for today is based on a combination of the following eight different indices:
M
=
-4.84
+
0.92 * DSRI
+
0.528 * GMI
+
0.404 * AQI
+
0.892 * SGI
+
0.115 * DEPI
=
-4.84
+
0.92 * 6.2305
+
0.528 * 0.5626
+
0.404 * 1.1338
+
0.892 * 0.1398
+
0.115 * 1.062
-
0.172 * SGAI
+
4.679 * TATA
-
0.327 * LVGI
-
0.172 * 0
+
4.679 * 0.860893
-
0.327 * 0.4392
=
5.78
* 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.
Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.
DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.
DEPI
=
(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))
/
(Depreciation_t / (Depreciaton_t + PPE_t))
=
(91.9 / (91.9 + 660.765))
/
(65.6 / (65.6 + 505))
=
0.122099
/
0.114967
=
1.062
Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.
6. SGAI = Sales, General and Administrative expenses Index
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
TATA
=
(IncomefromContinuingOperations_t
-
CashFlowsfromOperations_t)
/
TotalAssets_t
=
(NetIncome_t - NonOperatingIncome_t
-
CashFlowsfromOperations_t)
/
TotalAssets_t
=
(1077.3 - 0
-
-710)
/
2076.1
=
0.860893
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
Shah Alloys has a M-score of 5.78 signals that the company is likely to be a manipulator.
Shah Alloys (BOM:513436) has a Beneish M-Score of 5.78 as of Jul. 14, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Shah Alloys and its competitors. According to the industry distribution chart, Shah Alloys ranks #565 out of 587 companies in the Steel industry, placing it in the top 96.3%.
Is Shah Alloys' Beneish M-Score too high?
Shah Alloys' current Beneish M-Score is 5.78. Based on the distribution chart, Shah Alloys ranks #565 out of 587 companies in the Steel industry, which is in the bottom quartile relative to peers. Overall, Shah Alloys has a GF Score™ of 53/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shah Alloys' Beneish M-Score compare to NUE and STLD?
According to the Steel industry distribution chart, Shah Alloys ranks #565 out of 587 companies for Beneish M-Score. This places Shah Alloys in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Steel company?
A good Beneish M-Score depends on the Steel industry context. However, Beneish M-Score 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 Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Shah Alloys and its competitors. Shah Alloys's current Beneish M-Score is 5.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shah Alloys stock overvalued right now?
Based on GuruFocus' analysis, Shah Alloys (BOM:513436) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹4.92, compared to a current price of ₹72.02 — trading 1363.8% above its estimated fair value. The current Beneish M-Score is 5.78. Shah Alloys' overall GF Score™ is 53/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Shah Alloys (BOM:513436), the current Beneish M-Score is 5.78 as of Jul. 14, 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 Shah Alloys (BOM:513436) Overvalued in 2026?
Based on GuruFocus' analysis, Shah Alloys stock appears to be overvalued.
The current stock price of ₹72.02 is trading 1363.8% above its estimated GF Value™ of ₹4.92.
GuruFocus considers Shah Alloys to be Significantly Overvalued.
Key valuation signals for BOM:513436:
Beneish M-Score: 5.78
GF Value™: ₹4.92 vs. price of ₹72.02 (1363.8% above fair value)
No single metric tells the full story. See the BOM:513436 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shah Alloys Ltd manufactures and supplies steel in India. The company is engaged in the manufacturing of Stainless steel, alloy special steel, Carbon/mild steel, and Armour steel in Flat and long products. The product offered by the group includes hot rolled coils, hot rolled sheets, and plates, cold rolled coils and sheets, hot rolled round bars, hot rolled flat bars, angles, bright/peeled bars, beams, and angles. The firm generates a majority of its revenue from the sale of Iron and Steel products, which include Bars, Beams, Flat Plate coil, Slab, and Billets.
53GF Score
Get the complete analysis for BOM:513436
Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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