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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.
Good Sign:
Beneish M-Score -3.55 no higher than -1.78, which implies that the company is unlikely to be a manipulator.
The historical rank and industry rank for Smruthi Organics's Beneish M-Score or its related term are showing as below:
BOM:540686'
s Beneish M-Score Range Over the Past 10 Years
Min: -3.55 Med: -3.02 Max: -1.58
Current: -3.55
During the past 13 years, the highest Beneish M-Score of Smruthi Organics was -1.58. The lowest was -3.55. And the median was -3.02.
Smruthi Organics Beneish M-Score Related Terms
Smruthi Organics Beneish M-Score Historical Data
* Premium members only.
The historical data trend for Smruthi Organics'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:540686 vs ZTS, UTHR: Beneish M-Score Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Smruthi Organics'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.
Smruthi Organics Beneish M-Score vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Smruthi Organics's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Smruthi Organics'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 Smruthi Organics 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 * 0.7276
+
0.528 * 0.8205
+
0.404 * 1.1699
+
0.892 * 0.8092
+
0.115 * 0.919
-
0.172 * SGAI
+
4.679 * TATA
-
0.327 * LVGI
-
0.172 * 0
+
4.679 * -0.181898
-
0.327 * 0.8042
=
-3.55
* 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))
=
(55.01 / (55.01 + 473.618))
/
(63.487 / (63.487 + 497.209))
=
0.104062
/
0.113229
=
0.919
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
=
(34.257 - 0
-
222.594)
/
1035.4
=
-0.181898
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.
Smruthi Organics has a M-score of -3.55 suggests that the company is unlikely to be a manipulator.
Smruthi Organics (BOM:540686) has a Beneish M-Score of -3.55 as of Jul. 16, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Smruthi Organics and its competitors. According to the industry distribution chart, Smruthi Organics ranks #74 out of 911 companies in the Drug Manufacturers industry, placing it in the top 8.1%.
Is Smruthi Organics' Beneish M-Score too high?
Smruthi Organics' current Beneish M-Score is -3.55. Based on the distribution chart, Smruthi Organics ranks #74 out of 911 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Smruthi Organics has a GF Score™ of 68/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Smruthi Organics' Beneish M-Score compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Smruthi Organics ranks #74 out of 911 companies for Beneish M-Score. This places Smruthi Organics in the top 8% of its industry — outperforming the majority of peers. 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 Drug Manufacturers company?
A good Beneish M-Score depends on the Drug Manufacturers 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 Smruthi Organics and its competitors. Smruthi Organics's current Beneish M-Score is -3.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Smruthi Organics stock overvalued right now?
Based on GuruFocus' analysis, Smruthi Organics (BOM:540686) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹107.46, compared to a current price of ₹118.80 — trading 10.6% above its estimated fair value. The current Beneish M-Score is -3.55. Smruthi Organics' overall GF Score™ is 68/100 with 4 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 Smruthi Organics (BOM:540686), the current Beneish M-Score is -3.55 as of Jul. 16, 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 Smruthi Organics (BOM:540686) Overvalued in 2026?
Based on GuruFocus' analysis, Smruthi Organics stock appears to be overvalued.
The current stock price of ₹118.80 is trading 10.6% above its estimated GF Value™ of ₹107.46.
GuruFocus considers Smruthi Organics to be Modestly Overvalued.
Key valuation signals for BOM:540686:
Beneish M-Score: -3.55
GF Value™: ₹107.46 vs. price of ₹118.80 (10.6% above fair value)
No single metric tells the full story. See the BOM:540686 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Smruthi Organics Ltd is engaged in the manufacture of bulk drugs and drug intermediates (API Products). The product portfolio includes Amlodipine Besilate, Amlodipine Base, S-Amlodipine Besilate, S-Amlodipine Base, Norfloxacin, Metformin HCI, Diloxanide Furoate, Phthaloyl Amlodipine, Pantoprazole Sodium, Pefloxacin Mesylate Dihydrate, Telmisartan, Losartan Potassium, and many more. It has two reportable business segments: Bulk Drugs and Drugs Intermediates (API), and Formulation. It generates the majority of its revenue from the Bulk Drugs and Drugs Intermediates (API) segment. Geographically, the company generates maximum revenue from outside India through exports, and the rest from its business within India.
68GF Score
Get the complete analysis for BOM:540686
Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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