Abbott IndiaBOM:500488 +0.50%89 Interest Coverage is 75.21 as of Mar. 2026, which is 23% below its 10-year median of 97.78. GuruFocus rates BOM:500488 with a GF Score™ of 89/100 and a GF Value™ of ₹32,336.25 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 684 Drug Manufacturers companies, Abbott India ranks better than 75.44% 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. Abbott India's
Operating Income
for the
three
months ended in Mar. 2026 was ₹4,618 Mil. Abbott India's Interest Expense for the
three
months ended in Mar. 2026 was ₹-61 Mil.
Abbott India's interest coverage for the quarter that ended in Mar. 2026 was 75.21.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Abbott India Ltd has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for Abbott India's Interest Coverage or its related term are showing as below:
BOM:500488'
s Interest Coverage Range Over the Past 10 Years
Min: 47.71 Med: 97.78 Max: 262.98
Current: 72.67
BOM:500488's Interest Coverage is ranked better than 75.44% of 684
companies
in the Drug Manufacturers industry
Industry Median: 12.765
vs BOM:500488: 72.67
Abbott India (BOM:500488) Interest Coverage Explanation
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 .
Abbott India Interest Coverage Related Terms
Abbott India Interest Coverage Historical Data
* Premium members only.
The historical data trend for Abbott India's Interest Coverage 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.
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:500488 vs ZTS, UTHR: Interest Coverage Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Abbott India'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.
Abbott India Interest Coverage vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Abbott India's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Abbott India'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.
Abbott India (BOM:500488) has a Interest Coverage of 75.21 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Abbott India and its competitors. This is 23% below median its historical median of 97.78. Over the past decade, Abbott India's Interest Coverage has ranged from 47.71 to 262.98. According to the industry distribution chart, Abbott India ranks #168 out of 684 companies in the Drug Manufacturers industry, placing it in the top 24.6%.
Is Abbott India's Interest Coverage too high?
Abbott India's current Interest Coverage of 75.21 is 23% below median its 10-year median of 97.78. Over the past 10 years, this metric has ranged from a low of 47.71 to a high of 262.98. The Drug Manufacturers industry median Interest Coverage is 12.77. Abbott India's value of 75.21 is 489.2% above this industry median. Based on the distribution chart, Abbott India ranks #168 out of 684 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Abbott India has a GF Score™ of 89/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Abbott India's Interest Coverage compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Abbott India ranks #168 out of 684 companies for Interest Coverage. This places Abbott India in the top 25% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 12.77. Abbott India's value of 75.21 is 489.2% above this benchmark. Historically, Abbott India's own Interest Coverage has ranged from 47.71 to 262.98 over the past decade. While the company's 10-year median is 97.78 vs. the industry median of 12.77, Abbott India has consistently been above 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 12.77, based on 684 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. Abbott India's current Interest Coverage of 75.21 is 489.2% 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 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 Abbott India and its competitors. For the Drug Manufacturers industry, the median Interest Coverage is 12.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Abbott India's current Interest Coverage is 75.21, which is 23% below median its own 10-year median of 97.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Abbott India stock overvalued right now?
Based on GuruFocus' analysis, Abbott India (BOM:500488) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹32,336.25, compared to a current price of ₹25,850.45 — trading 20.1% below its estimated fair value. The current Interest Coverage is 75.21, which is 23% below median its 10-year median of 97.78 and 489.2% above the Drug Manufacturers industry median of 12.77. Abbott India's overall GF Score™ is 89/100 with 1 warning sign 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 Abbott India (BOM:500488), the current Interest Coverage is 75.21 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 Abbott India (BOM:500488) Overvalued in 2026?
Based on GuruFocus' analysis, Abbott India stock appears to be undervalued.
The current stock price of ₹25,850.45 is trading 20.1% below its estimated GF Value™ of ₹32,336.25.
GuruFocus considers Abbott India to be Modestly Undervalued.
Key valuation signals for BOM:500488:
Interest Coverage: 75.21 (23% below median its 10-year median of 97.78)
GF Value™: ₹32,336.25 vs. price of ₹25,850.45 (20.1% below fair value)
Industry Position: 489.2% above the Drug Manufacturers median (#168 of 684)
No single metric tells the full story. See the BOM:500488 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Abbott India Ltd is a drug manufacturing company that offers products in diagnostics, medical devices, nutritionals, and branded generic pharmaceuticals. Its patient focus centers overwhelmingly on women's health and gastrointestine, gastroenterology, and hepatic care. Geographically, the majority of the company's revenue is generated in India.
89GF Score
Get the complete analysis for BOM:500488
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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