The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.
Good Sign:
Altman Z-score of 3.68 is strong.
Bihar Sponge Iron has a Altman Z-Score of 3.69, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.
The zones of discrimination were as such:
When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.
The historical rank and industry rank for Bihar Sponge Iron's Altman Z-Score or its related term are showing as below:
BOM:500058'
s Altman Z-Score Range Over the Past 10 Years
Min: -6.76 Med: -2.02 Max: 3.68
Current: 3.68
During the past 13 years, Bihar Sponge Iron's highest Altman Z-Score was 3.68. The lowest was -6.76. And the median was -2.02.
Bihar Sponge Iron (BOM:500058) Altman Z-Score Explanation
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.
X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.
Altman Z-Score does not apply to financial companies.
Bihar Sponge Iron Altman Z-Score Related Terms
Bihar Sponge Iron Altman Z-Score Historical Data
* Premium members only.
The historical data trend for Bihar Sponge Iron's Altman Z-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:500058 vs NUE, STLD, RS: Altman Z-Score Comparison
For the Steel subindustry, Bihar Sponge Iron's Altman Z-Score, along with its competitors' market caps and Altman Z-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.
Bihar Sponge Iron Altman Z-Score vs Steel Industry
For the Steel industry and Basic Materials sector, Bihar Sponge Iron's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Bihar Sponge Iron's Altman Z-Score falls into.
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
Bihar Sponge Iron's Altman Z-Score for today is calculated with this formula:
Z
=
1.2
*
X1
+
1.4
*
X2
+
3.3
*
X3
+
0.6
*
X4
+
1.0
*
X5
=
1.2
*
0.0559
+
1.4
*
0
+
3.3
*
0.1227
+
0.6
*
0.9328
+
1.0
*
2.6604
=
3.69
* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.
Bihar Sponge Iron (BOM:500058) has a Altman Z-Score of 3.69 as of Jul. 07, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Bihar Sponge Iron and its competitors. According to the industry distribution chart, Bihar Sponge Iron ranks #174 out of 610 companies in the Steel industry, placing it in the top 28.5%.
Is Bihar Sponge Iron's Altman Z-Score too high?
Bihar Sponge Iron's current Altman Z-Score is 3.69. The Steel industry median Altman Z-Score is 2.46. Bihar Sponge Iron's value of 3.69 is 50% above this industry median. Based on the distribution chart, Bihar Sponge Iron ranks #174 out of 610 companies in the Steel industry, which is above the industry midpoint. Overall, Bihar Sponge Iron has a GF Score™ of 61/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Bihar Sponge Iron's Altman Z-Score compare to NUE and STLD?
According to the Steel industry distribution chart, Bihar Sponge Iron ranks #174 out of 610 companies for Altman Z-Score. This puts Bihar Sponge Iron in the upper half of its industry. The industry median Altman Z-Score is 2.46. Bihar Sponge Iron's value of 3.69 is 50% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Altman Z-Score for a Steel company?
The median Altman Z-Score among Steel companies is 2.46, based on 610 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Bihar Sponge Iron's current Altman Z-Score of 3.69 is 50% 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 Altman Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on Bihar Sponge Iron and its competitors. For the Steel industry, the median Altman Z-Score is 2.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bihar Sponge Iron's current Altman Z-Score is 3.69. 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 ₹10.44, compared to a current price of ₹13.06 — trading 25.1% above its estimated fair value. The current Altman Z-Score is 3.69 and 50% above the Steel industry median of 2.46. Bihar Sponge Iron's overall GF Score™ is 61/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For Bihar Sponge Iron (BOM:500058), the current Altman Z-Score is 3.69 as of Jul. 07, 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 ₹13.06 is trading 25.1% above its estimated GF Value™ of ₹10.44.
GuruFocus considers Bihar Sponge Iron to be Modestly Overvalued.
Key valuation signals for BOM:500058:
Altman Z-Score: 3.69
GF Value™: ₹10.44 vs. price of ₹13.06 (25.1% above fair value)
Industry Position: 50% above the Steel median (#174 of 610)
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.
61GF Score
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