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Akar Auto IndustriesBOM:530621 -1.95%67 Altman Z-Score is 1.96 as of Jul. 25, 2026, which is 22% below its 10-year median of 2.50. GuruFocus rates BOM:530621 with a GF Score™ of 67/100 and a GF Value™ of ₹104.56 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,313 Vehicles & Parts companies, Akar Auto Industries ranks worse than 66.49% on this metric.
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.
Warning Sign:
Altman Z-score of 1.91 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.
Akar Auto Industries has a Altman Z-Score of 1.96, indicating it is in Grey Zones. This implies that Akar Auto Industries is in some kind of financial stress. If it is below 1.81, the company may face bankrupcy risk.
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 Akar Auto Industries's Altman Z-Score or its related term are showing as below:
BOM:530621'
s Altman Z-Score Range Over the Past 10 Years
Min: 1.55 Med: 2.5 Max: 2.77
Current: 1.91
During the past 13 years, Akar Auto Industries's highest Altman Z-Score was 2.77. The lowest was 1.55. And the median was 2.50.
Akar Auto Industries (BOM:530621) 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.
Akar Auto Industries Altman Z-Score Related Terms
Akar Auto Industries Altman Z-Score Historical Data
* Premium members only.
The historical data trend for Akar Auto Industries'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:530621 vs ORLY, AZO: Altman Z-Score Comparison
For the Auto Parts subindustry, Akar Auto Industries'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.
Akar Auto Industries Altman Z-Score vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Akar Auto Industries's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Akar Auto Industries'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.
Akar Auto Industries'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
*
0.0531
+
1.4
*
0
+
3.3
*
0.0619
+
0.6
*
0.5944
+
1.0
*
1.3337
=
1.96
* 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.
Akar Auto Industries (BOM:530621) has a Altman Z-Score of 1.96 as of Jul. 25, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Akar Auto Industries and its competitors. This is 22% below median its historical median of 2.50. Over the past decade, Akar Auto Industries' Altman Z-Score has ranged from 1.55 to 2.77. According to the industry distribution chart, Akar Auto Industries ranks #873 out of 1313 companies in the Vehicles & Parts industry, placing it in the top 66.5%.
Is Akar Auto Industries' Altman Z-Score too high?
Akar Auto Industries' current Altman Z-Score of 1.96 is 22% below median its 10-year median of 2.50. Over the past 10 years, this metric has ranged from a low of 1.55 to a high of 2.77. The Vehicles & Parts industry median Altman Z-Score is 2.53. Akar Auto Industries' value of 1.96 is 22.5% below this industry median. Based on the distribution chart, Akar Auto Industries ranks #873 out of 1313 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Akar Auto Industries has a GF Score™ of 67/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Akar Auto Industries' Altman Z-Score compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Akar Auto Industries ranks #873 out of 1313 companies for Altman Z-Score. This places Akar Auto Industries in the lower half of its industry. The industry median Altman Z-Score is 2.53. Akar Auto Industries' value of 1.96 is 22.5% below this benchmark. Historically, Akar Auto Industries' own Altman Z-Score has ranged from 1.55 to 2.77 over the past decade. While the company's 10-year median is 2.50 vs. the industry median of 2.53, Akar Auto Industries 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 Altman Z-Score for a Vehicles & Parts company?
The median Altman Z-Score among Vehicles & Parts companies is 2.53, based on 1,313 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. Akar Auto Industries's current Altman Z-Score of 1.96 is 22.5% 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 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 Akar Auto Industries and its competitors. For the Vehicles & Parts industry, the median Altman Z-Score is 2.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Akar Auto Industries's current Altman Z-Score is 1.96, which is 22% below median its own 10-year median of 2.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Akar Auto Industries stock overvalued right now?
Based on GuruFocus' analysis, Akar Auto Industries (BOM:530621) is currently considered Fairly Valued. The stock's GF Value™ is ₹104.56, compared to a current price of ₹112.90 — trading 8% above its estimated fair value. The current Altman Z-Score is 1.96, which is 22% below median its 10-year median of 2.50 and 22.5% below the Vehicles & Parts industry median of 2.53. Akar Auto Industries' overall GF Score™ is 67/100 with 4 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 Akar Auto Industries (BOM:530621), the current Altman Z-Score is 1.96 as of Jul. 25, 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 Akar Auto Industries (BOM:530621) Overvalued in 2026?
Based on GuruFocus' analysis, Akar Auto Industries stock appears to be overvalued.
The current stock price of ₹112.90 is trading 8% above its estimated GF Value™ of ₹104.56.
GuruFocus considers Akar Auto Industries to be Fairly Valued.
Key valuation signals for BOM:530621:
Altman Z-Score: 1.96 (22% below median its 10-year median of 2.50)
GF Value™: ₹104.56 vs. price of ₹112.90 (8% above fair value)
Industry Position: 22.5% below the Vehicles & Parts median (#873 of 1313)
No single metric tells the full story. See the BOM:530621 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Akar Auto Industries Ltd is involved in the manufacture, export, import, and trading of a high-quality array of Hand Tools, Automotive Tools, Forged components, and Leaf springs. The company mainly produces automobile parts for heavy commercial vehicles and passenger vehicles. It operates in both domestic and international markets, with the majority of its revenue coming from the domestic segment. The Company is engaged in a single line of business, i.e., manufacturing of hand tools, auto leaf springs, parabolic springs, and commercial automotive forgings.
67GF Score
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