Bihar Sponge IronBOM:500058 -1.54%54 Quick Ratio is 1.03 as of Mar. 2026, which is 1371% above its 10-year median of 0.07. GuruFocus rates BOM:500058 with a GF Score™ of 54/100 and a GF Value™ of ₹10.45 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 635 Steel companies, Bihar Sponge Iron ranks better than 51.02% on this metric.
Bihar Sponge Iron has a quick ratio of 1.03. It generally indicates good short-term financial strength.
The historical rank and industry rank for Bihar Sponge Iron's Quick Ratio or its related term are showing as below:
BOM:500058'
s Quick Ratio Range Over the Past 10 Years
Min: 0.03 Med: 0.07 Max: 1.03
Current: 1.03
During the past 13 years, Bihar Sponge Iron's highest Quick Ratio was 1.03. The lowest was 0.03. And the median was 0.07.
BOM:500058's Quick Ratio is ranked better than 51.02% of 635
companies
in the Steel industry
Industry Median: 1.02
vs BOM:500058: 1.03
Bihar Sponge Iron (BOM:500058) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Bihar Sponge Iron Quick Ratio Related Terms
Bihar Sponge Iron Quick Ratio Historical Data
* Premium members only.
The historical data trend for Bihar Sponge Iron's Quick 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.
BOM:500058 vs NUE, STLD, RS: Quick Ratio Comparison
For the Steel subindustry, Bihar Sponge Iron's Quick Ratio, along with its competitors' market caps and Quick 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.
Bihar Sponge Iron Quick Ratio vs Steel Industry
For the Steel industry and Basic Materials sector, Bihar Sponge Iron's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Bihar Sponge Iron's Quick Ratio falls into.
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Bihar Sponge Iron's Quick Ratio for the fiscal year that ended in Mar. 2026 is calculated as
* 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 (BOM:500058) has a Quick Ratio of 1.03 as of Mar. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Bihar Sponge Iron and its competitors. This is 1371% above median its historical median of 0.07. Over the past decade, Bihar Sponge Iron's Quick Ratio has ranged from 0.03 to 1.03. According to the industry distribution chart, Bihar Sponge Iron ranks #311 out of 635 companies in the Steel industry, placing it in the top 49%.
Is Bihar Sponge Iron's Quick Ratio too high?
Bihar Sponge Iron's current Quick Ratio of 1.03 is 1371% above median its 10-year median of 0.07. Over the past 10 years, this metric has ranged from a low of 0.03 to a high of 1.03. The Steel industry median Quick Ratio is 1.02. Bihar Sponge Iron's value of 1.03 is 1% above this industry median. Based on the distribution chart, Bihar Sponge Iron ranks #311 out of 635 companies in the Steel industry, which is above the industry midpoint. Overall, Bihar Sponge Iron has a GF Score™ of 54/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Bihar Sponge Iron's Quick Ratio compare to NUE and STLD?
According to the Steel industry distribution chart, Bihar Sponge Iron ranks #311 out of 635 companies for Quick Ratio. This puts Bihar Sponge Iron in the upper half of its industry. The industry median Quick Ratio is 1.02. Bihar Sponge Iron's value of 1.03 is 1% above this benchmark. Historically, Bihar Sponge Iron's own Quick Ratio has ranged from 0.03 to 1.03 over the past decade. While the company's 10-year median is 0.07 vs. the industry median of 1.02, Bihar Sponge Iron 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 Quick Ratio for a Steel company?
The median Quick Ratio among Steel companies is 1.02, based on 635 companies in the industry. Companies in the top quartile (top 25%) have a Quick Ratio significantly above this median, while those in the bottom quartile fall well below. However, Quick Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Bihar Sponge Iron's current Quick Ratio of 1.03 is 1% 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 Quick Ratio mean?
A high Quick Ratio can signal that a stock is expensive relative to its fundamentals. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Bihar Sponge Iron and its competitors. For the Steel industry, the median Quick Ratio is 1.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bihar Sponge Iron's current Quick Ratio is 1.03, which is 1371% above median its own 10-year median of 0.07. 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 ₹10.45, compared to a current price of ₹12.77 — trading 22.2% above its estimated fair value. The current Quick Ratio is 1.03, which is 1371% above median its 10-year median of 0.07 and 1% above the Steel industry median of 1.02. Bihar Sponge Iron's overall GF Score™ is 54/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Quick Ratio calculated?
Quick Ratio is calculated from a company's financial statements. For Bihar Sponge Iron (BOM:500058), the current Quick Ratio is 1.03 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 ₹12.77 is trading 22.2% above its estimated GF Value™ of ₹10.45.
GuruFocus considers Bihar Sponge Iron to be Modestly Overvalued.
Key valuation signals for BOM:500058:
Quick Ratio: 1.03 (1371% above median its 10-year median of 0.07)
GF Value™: ₹10.45 vs. price of ₹12.77 (22.2% above fair value)
Industry Position: 1% above the Steel median (#311 of 635)
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 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.
54GF Score
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