SML MahindraNSE:SMLMAH -1.65%75 Quick Ratio is 0.42 as of Mar. 2026, which is 8% above its 10-year median of 0.39. GuruFocus rates NSE:SMLMAH with a GF Score™ of 75/100 and a GF Value™ of ₹2,407.48 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,335 Vehicles & Parts companies, SML Mahindra ranks worse than 92.28% on this metric.
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. SML Mahindra's quick ratio for the quarter that ended in Mar. 2026 was 0.42.
SML Mahindra has a quick ratio of 0.42. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for SML Mahindra's Quick Ratio or its related term are showing as below:
NSE:SMLMAH'
s Quick Ratio Range Over the Past 10 Years
Min: 0.17 Med: 0.39 Max: 0.55
Current: 0.42
During the past 13 years, SML Mahindra's highest Quick Ratio was 0.55. The lowest was 0.17. And the median was 0.39.
NSE:SMLMAH's Quick Ratio is ranked worse than 92.28% of 1335
companies
in the Vehicles & Parts industry
Industry Median: 1.06
vs NSE:SMLMAH: 0.42
SML Mahindra (NSE:SMLMAH) 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.
SML Mahindra Quick Ratio Related Terms
SML Mahindra Quick Ratio Historical Data
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The historical data trend for SML Mahindra'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 Manufacturers subindustry, SML Mahindra'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.
SML Mahindra Quick Ratio vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, SML Mahindra's Quick Ratio distribution charts can be found below:
* The bar in red indicates where SML Mahindra'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.
SML Mahindra'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.
SML Mahindra (NSE:SMLMAH) has a Quick Ratio of 0.42 as of Mar. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on SML Mahindra and its competitors. This is near median its historical median of 0.39. Over the past decade, SML Mahindra's Quick Ratio has ranged from 0.17 to 0.55. According to the industry distribution chart, SML Mahindra ranks #1232 out of 1335 companies in the Vehicles & Parts industry, placing it in the top 92.3%.
Is SML Mahindra's Quick Ratio too high?
SML Mahindra's current Quick Ratio of 0.42 is near median its 10-year median of 0.39. Over the past 10 years, this metric has ranged from a low of 0.17 to a high of 0.55. The Vehicles & Parts industry median Quick Ratio is 1.06. SML Mahindra's value of 0.42 is 60.4% below this industry median. Based on the distribution chart, SML Mahindra ranks #1232 out of 1335 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, SML Mahindra has a GF Score™ of 75/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SML Mahindra's Quick Ratio compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, SML Mahindra ranks #1232 out of 1335 companies for Quick Ratio. This places SML Mahindra in the lower half of its industry. The industry median Quick Ratio is 1.06. SML Mahindra's value of 0.42 is 60.4% below this benchmark. Historically, SML Mahindra's own Quick Ratio has ranged from 0.17 to 0.55 over the past decade. While the company's 10-year median is 0.39 vs. the industry median of 1.06, SML Mahindra has consistently been below 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 1.06, based on 1,335 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. SML Mahindra's current Quick Ratio of 0.42 is 60.4% below 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 SML Mahindra and its competitors. For the Vehicles & Parts industry, the median Quick Ratio is 1.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SML Mahindra's current Quick Ratio is 0.42, which is near median its own 10-year median of 0.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SML Mahindra stock overvalued right now?
Based on GuruFocus' analysis, SML Mahindra (NSE:SMLMAH) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹2,407.48, compared to a current price of ₹3,892.30 — trading 61.7% above its estimated fair value. The current Quick Ratio is 0.42, which is near median its 10-year median of 0.39 and 60.4% below the Vehicles & Parts industry median of 1.06. SML Mahindra's overall GF Score™ is 75/100 with 1 warning sign 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 SML Mahindra (NSE:SMLMAH), the current Quick Ratio is 0.42 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 SML Mahindra (NSE:SMLMAH) Overvalued in 2026?
Based on GuruFocus' analysis, SML Mahindra stock appears to be overvalued.
The current stock price of ₹3,892.30 is trading 61.7% above its estimated GF Value™ of ₹2,407.48.
GuruFocus considers SML Mahindra to be Significantly Overvalued.
Key valuation signals for NSE:SMLMAH:
Quick Ratio: 0.42 (near median its 10-year median of 0.39)
GF Value™: ₹2,407.48 vs. price of ₹3,892.30 (61.7% above fair value)
Industry Position: 60.4% below the Vehicles & Parts median (#1232 of 1335)
No single metric tells the full story. See the NSE:SMLMAH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SML Mahindra Ltd, formerly SML Isuzu Ltd is engaged in the business of manufacturing and selling of commercial vehicles including light and medium-duty trucks, buses, ambulances, and specialized vehicles. The company integrates Japanese technology with local manufacturing to offer reliable and cost-effective transportation solutions. Its product portfolio spans cargo trucks and passenger buses with variants that support different industries such as education, tourism, and corporate transport. Revenue is majorly generated through the sale of vehicles and after-sales services including telematics support. The company operates predominantly in India and exports to several countries across Africa and Asia.
75GF Score
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