Measuring the financial health of a firm has been an extremely important need for both managers as well as investors. Several tools were developed to diagnose the financial strength of a Company based on the Financial Statements. Ratio Analysis, and Decision Theory etc., but they indicate the present result not the future. Edward I. Altman’s discriminant analysis, which employs a combination of various ratios to form an index of liquidity, profitability, sustainability and feasibility, has been highly accurate in analyzing the present state of financial health of a firm as well as to enable one to predict the future, particularly in terms of probability of bankruptcy.This paperattempts to investigate the financial health of selected Steel companies in India.The period of study is ten years from 2006-07 to 2015-16.. As per the calculated Z-Score, Ferro Alloys Corporation Ltd  falls in to too healthy zone. Bajaj Industry Steel Limited,Steel authority Of India Limited, Steel Exchange of India Limited   and Uttam Galva  Steel  Limited fall in to healthy zone. Facor Steel Limited , Jindal Steel Limited, JSW Steel  Limited,  Tata Steel Limited  and VISA Steel Limited falls in to bankruptcy zone.The study concludes that the selected steel companies’ overall financial health is found to be  satisfactory during the study period.

KEYWORDS: Steel Sector, Z-Score Model, Ratio Analysis, Financial Health