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Ambalalrabhai EnterprisesBOM:500009 +0.77%65 Interest Coverage is 3.27 as of Mar. 2026, which is 49% above its 10-year median of 2.19. GuruFocus rates BOM:500009 with a GF Score™ of 65/100 and a GF Value™ of ₹41.68 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 687 Drug Manufacturers companies, Ambalalrabhai Enterprises ranks worse than 86.03% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Ambalalrabhai Enterprises's
Operating Income
for the
three
months ended in Mar. 2026 was ₹47 Mil. Ambalalrabhai Enterprises's Interest Expense for the
three
months ended in Mar. 2026 was ₹-14 Mil.
Ambalalrabhai Enterprises's interest coverage for the quarter that ended in Mar. 2026 was 3.27.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Ambalalrabhai Enterprises's Interest Coverage or its related term are showing as below:
BOM:500009'
s Interest Coverage Range Over the Past 10 Years
Min: 0.92 Med: 2.19 Max: 14.21
Current: 1.91
BOM:500009's Interest Coverage is ranked worse than 86.03% of 687
companies
in the Drug Manufacturers industry
Industry Median: 12.75
vs BOM:500009: 1.91
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Ambalalrabhai Enterprises Interest Coverage Related Terms
Ambalalrabhai Enterprises Interest Coverage Historical Data
* 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
BOM:500009 vs ZTS, UTHR: Interest Coverage Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Ambalalrabhai Enterprises's Interest Coverage, along with its competitors' market caps and Interest Coverage 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.
Ambalalrabhai Enterprises Interest Coverage vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Ambalalrabhai Enterprises's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Ambalalrabhai Enterprises's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Ambalalrabhai Enterprises (BOM:500009) has a Interest Coverage of 3.27 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Ambalalrabhai Enterprises and its competitors. This is 49% above median its historical median of 2.19. Over the past decade, Ambalalrabhai Enterprises' Interest Coverage has ranged from 0.92 to 14.21. According to the industry distribution chart, Ambalalrabhai Enterprises ranks #591 out of 687 companies in the Drug Manufacturers industry, placing it in the top 86%.
Is Ambalalrabhai Enterprises' Interest Coverage too high?
Ambalalrabhai Enterprises' current Interest Coverage of 3.27 is 49% above median its 10-year median of 2.19. Over the past 10 years, this metric has ranged from a low of 0.92 to a high of 14.21. The Drug Manufacturers industry median Interest Coverage is 12.75. Ambalalrabhai Enterprises' value of 3.27 is 74.4% below this industry median. Based on the distribution chart, Ambalalrabhai Enterprises ranks #591 out of 687 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers. Overall, Ambalalrabhai Enterprises has a GF Score™ of 65/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ambalalrabhai Enterprises' Interest Coverage compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Ambalalrabhai Enterprises ranks #591 out of 687 companies for Interest Coverage. This places Ambalalrabhai Enterprises in the lower half of its industry. The industry median Interest Coverage is 12.75. Ambalalrabhai Enterprises' value of 3.27 is 74.4% below this benchmark. Historically, Ambalalrabhai Enterprises' own Interest Coverage has ranged from 0.92 to 14.21 over the past decade. While the company's 10-year median is 2.19 vs. the industry median of 12.75, Ambalalrabhai Enterprises 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 Interest Coverage for a Drug Manufacturers company?
The median Interest Coverage among Drug Manufacturers companies is 12.75, based on 687 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ambalalrabhai Enterprises's current Interest Coverage of 3.27 is 74.4% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Ambalalrabhai Enterprises and its competitors. For the Drug Manufacturers industry, the median Interest Coverage is 12.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ambalalrabhai Enterprises's current Interest Coverage is 3.27, which is 49% above median its own 10-year median of 2.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ambalalrabhai Enterprises stock overvalued right now?
Based on GuruFocus' analysis, Ambalalrabhai Enterprises (BOM:500009) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹41.68, compared to a current price of ₹31.48 — trading 24.5% below its estimated fair value. The current Interest Coverage is 3.27, which is 49% above median its 10-year median of 2.19 and 74.4% below the Drug Manufacturers industry median of 12.75. Ambalalrabhai Enterprises' overall GF Score™ is 65/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Ambalalrabhai Enterprises (BOM:500009), the current Interest Coverage is 3.27 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 Ambalalrabhai Enterprises (BOM:500009) Overvalued in 2026?
Based on GuruFocus' analysis, Ambalalrabhai Enterprises stock appears to be undervalued.
The current stock price of ₹31.48 is trading 24.5% below its estimated GF Value™ of ₹41.68.
GuruFocus considers Ambalalrabhai Enterprises to be Modestly Undervalued.
Key valuation signals for BOM:500009:
Interest Coverage: 3.27 (49% above median its 10-year median of 2.19)
GF Value™: ₹41.68 vs. price of ₹31.48 (24.5% below fair value)
Industry Position: 74.4% below the Drug Manufacturers median (#591 of 687)
No single metric tells the full story. See the BOM:500009 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ambalal Sarabhai Enterprises Ltd is an India-based company engaged in the manufacturing and marketing of Drugs and Formulation. The operating segment of the company is Pharmaceutical Products. It serves domestic as well as International markets.
65GF Score
Get the complete analysis for BOM:500009
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