Mughal Iron & Steel Industries (KAR:MUGHAL) Effective Interest Rate on Debt %: 9.28% (As of Mar. 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

KAR:MUGHAL Mughal Iron & Steel Industries Ltd KAR:MUGHAL
91 GF Score
Price ₨78.05
GF Value ₨70.70
Valuation Fairly Valued
! 6 Warning Signs
View Full Analysis

What is Mughal Iron & Steel Industries Effective Interest Rate on Debt %?

Mughal Iron & Steel Industries KAR:MUGHAL 91 Effective Interest Rate on Debt % is 9.28% as of Mar. 2026. GuruFocus rates KAR:MUGHAL with a GF Score™ of 91/100 and a GF Value™ of ₨70.70 (Fairly Valued). The stock has 6 warning signs investors should review.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Mughal Iron & Steel Industries's annualized positive value of Interest Expense for the quarter that ended in Mar. 2026 was ₨3,276 Mil. Mughal Iron & Steel Industries's average total debt for the quarter that ended in Mar. 2026 was ₨35,306 Mil. Therefore, Mughal Iron & Steel Industries's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 was 9.28%.


Mughal Iron & Steel Industries  (KAR:MUGHAL) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.


Mughal Iron & Steel Industries Effective Interest Rate on Debt % Related Terms


Mughal Iron & Steel Industries Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Mughal Iron & Steel Industries's Effective Interest Rate on Debt % 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.

Mughal Iron & Steel Industries Effective Interest Rate on Debt % Chart

Mughal Iron & Steel Industries Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.41 10.89 16.69 20.24 17.03

Mughal Iron & Steel Industries Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Effective Interest Rate on Debt % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.78 11.34 12.35 11.19 9.28

KAR:MUGHAL vs NUE, STLD, RS: Effective Interest Rate on Debt % Comparison

For the Steel subindustry, Mughal Iron & Steel Industries's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % 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.


Mughal Iron & Steel Industries Effective Interest Rate on Debt % vs Steel Industry

For the Steel industry and Basic Materials sector, Mughal Iron & Steel Industries's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Mughal Iron & Steel Industries's Effective Interest Rate on Debt % falls into.


KAR:MUGHAL
91GF Score
Mughal Iron & Steel Industries Ltd KAR:MUGHAL
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Mughal Iron & Steel Industries Effective Interest Rate on Debt % Calculation

Mughal Iron & Steel Industries's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Jun. 2025 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Jun. 2024 )+Total Debt  (A: Jun. 2025 ))/ count )
=-1  *  -5491.659/( (35369.085+29129.477)/ 2 )
=-1  *  -5491.659/32249.281
=17.03 %

where

Total Debt  (A: Jun. 2024 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=2841.956 + 32527.129
=35369.085

Total Debt  (A: Jun. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=4813.429 + 24316.048
=29129.477

Mughal Iron & Steel Industries's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Dec. 2025 )+Total Debt  (Q: Mar. 2026 ))/ count )
=-1  *  -3276.384/( (33832.638+36779.549)/ 2 )
=-1  *  -3276.384/35306.0935
=9.28 %

where

Total Debt  (Q: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=3420.127 + 30412.511
=33832.638

Total Debt  (Q: Mar. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=8869.219 + 27910.33
=36779.549

* 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.

In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is four times the quarterly (Mar. 2026) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 9.28% mean?
Mughal Iron & Steel Industries (KAR:MUGHAL) has a Effective Interest Rate on Debt % of 9.28% as of Mar. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Mughal Iron & Steel Industries and its competitors.
Is Mughal Iron & Steel Industries' Effective Interest Rate on Debt % too high?
Mughal Iron & Steel Industries' current Effective Interest Rate on Debt % is 9.28%. Overall, Mughal Iron & Steel Industries has a GF Score™ of 91/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Mughal Iron & Steel Industries' Effective Interest Rate on Debt % compare to NUE and STLD?
Mughal Iron & Steel Industries' Effective Interest Rate on Debt % of 9.28% can be compared against companies in the Steel industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for a Steel company?
A good Effective Interest Rate on Debt % depends on the Steel industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Mughal Iron & Steel Industries and its competitors. Mughal Iron & Steel Industries's current Effective Interest Rate on Debt % is 9.28%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mughal Iron & Steel Industries stock overvalued right now?
Based on GuruFocus' analysis, Mughal Iron & Steel Industries (KAR:MUGHAL) is currently considered Fairly Valued. The stock's GF Value™ is ₨70.70, compared to a current price of ₨78.05 — trading 10.4% above its estimated fair value. The current Effective Interest Rate on Debt % is 9.28%. Mughal Iron & Steel Industries' overall GF Score™ is 91/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Mughal Iron & Steel Industries (KAR:MUGHAL), the current Effective Interest Rate on Debt % is 9.28% 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 Mughal Iron & Steel Industries (KAR:MUGHAL) Overvalued in 2026?

Based on GuruFocus' analysis, Mughal Iron & Steel Industries stock appears to be overvalued. The current stock price of ₨78.05 is trading 10.4% above its estimated GF Value™ of ₨70.70. GuruFocus considers Mughal Iron & Steel Industries to be Fairly Valued.

Key valuation signals for KAR:MUGHAL:

  • Effective Interest Rate on Debt %: 9.28%
  • GF Value™: ₨70.70 vs. price of ₨78.05 (10.4% above fair value)
  • GF Score™: 91/100 with 6 warning signs

No single metric tells the full story. See the KAR:MUGHAL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Mughal Iron & Steel Industries Business Description

Other Exchanges MUGHALC:Pakistan
Address 31-A Shadman 1, Lahore, PB, PAK
Mughal Iron & Steel Industries Ltd is engaged in the manufacturing and trading of mild steel products. The operating segments of the company are Ferrous, Non-Ferrous, and the Energy segment. The company's main products involve Steel re-bars (G60 / Mughal Supreme), Girders, Billets, Copper ingots, and Copper granules.
91GF Score

Get the complete analysis for KAR:MUGHAL

Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₨78.05
Price
₨70.70
GF Value