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Kinetic EngineeringBOM:500240 +2.63%53 Quick Ratio is 1.16 as of Mar. 2026, which is 176% above its 10-year median of 0.42. GuruFocus rates BOM:500240 with a GF Score™ of 53/100 and a GF Value™ of ₹178.62 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 1,331 Vehicles & Parts companies, Kinetic Engineering ranks better than 56.05% on this metric.
Kinetic Engineering (BOM:500240) 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.
Kinetic Engineering Quick Ratio Related Terms
Kinetic Engineering Quick Ratio Historical Data
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The historical data trend for Kinetic Engineering'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.
For the Auto Parts subindustry, Kinetic Engineering'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.
Kinetic Engineering Quick Ratio vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Kinetic Engineering's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Kinetic Engineering'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.
Kinetic Engineering'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.
Kinetic Engineering (BOM:500240) has a Quick Ratio of 1.16 as of Mar. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Kinetic Engineering and its competitors. This is 176% above median its historical median of 0.42. Over the past decade, Kinetic Engineering's Quick Ratio has ranged from 0.36 to 1.16. According to the industry distribution chart, Kinetic Engineering ranks #585 out of 1331 companies in the Vehicles & Parts industry, placing it in the top 44%.
Is Kinetic Engineering's Quick Ratio too high?
Kinetic Engineering's current Quick Ratio of 1.16 is 176% above median its 10-year median of 0.42. Over the past 10 years, this metric has ranged from a low of 0.36 to a high of 1.16. The Vehicles & Parts industry median Quick Ratio is 1.05. Kinetic Engineering's value of 1.16 is 10.5% above this industry median. Based on the distribution chart, Kinetic Engineering ranks #585 out of 1331 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Kinetic Engineering has a GF Score™ of 53/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kinetic Engineering's Quick Ratio compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Kinetic Engineering ranks #585 out of 1331 companies for Quick Ratio. This puts Kinetic Engineering in the upper half of its industry. The industry median Quick Ratio is 1.05. Kinetic Engineering's value of 1.16 is 10.5% above this benchmark. Historically, Kinetic Engineering's own Quick Ratio has ranged from 0.36 to 1.16 over the past decade. While the company's 10-year median is 0.42 vs. the industry median of 1.05, Kinetic Engineering 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 Vehicles & Parts company?
The median Quick Ratio among Vehicles & Parts companies is 1.05, based on 1,331 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. Kinetic Engineering's current Quick Ratio of 1.16 is 10.5% 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 Kinetic Engineering and its competitors. For the Vehicles & Parts industry, the median Quick Ratio is 1.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kinetic Engineering's current Quick Ratio is 1.16, which is 176% above median its own 10-year median of 0.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kinetic Engineering stock overvalued right now?
Based on GuruFocus' analysis, Kinetic Engineering (BOM:500240) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹178.62, compared to a current price of ₹267.15 — trading 49.6% above its estimated fair value. The current Quick Ratio is 1.16, which is 176% above median its 10-year median of 0.42 and 10.5% above the Vehicles & Parts industry median of 1.05. Kinetic Engineering's overall GF Score™ is 53/100 with 4 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 Kinetic Engineering (BOM:500240), the current Quick Ratio is 1.16 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 Kinetic Engineering (BOM:500240) Overvalued in 2026?
Based on GuruFocus' analysis, Kinetic Engineering stock appears to be overvalued.
The current stock price of ₹267.15 is trading 49.6% above its estimated GF Value™ of ₹178.62.
GuruFocus considers Kinetic Engineering to be Significantly Overvalued.
Key valuation signals for BOM:500240:
Quick Ratio: 1.16 (176% above median its 10-year median of 0.42)
GF Value™: ₹178.62 vs. price of ₹267.15 (49.6% above fair value)
Industry Position: 10.5% above the Vehicles & Parts median (#585 of 1331)
No single metric tells the full story. See the BOM:500240 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kinetic Engineering Ltd operates in the automobile industry. The company is engaged in the manufacturing and distribution of automotive components. Its vertically integrated facility produces forgings, gears, shafts, gear boxes, rigid axles for electric vehicles, and chassis, catering to International and domestic clients to build a growing auto components and auto system business.
53GF Score
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