Novartis IndiaBOM:500672 -0.12%59 Interest Coverage is 287.57 as of Mar. 2026, which is 756% above its 10-year median of 33.61. GuruFocus rates BOM:500672 with a GF Score™ of 59/100 and a GF Value™ of ₹927.81 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 685 Drug Manufacturers companies, Novartis India ranks better than 75.77% 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. Novartis India's
Operating Income
for the
three
months ended in Mar. 2026 was ₹201 Mil. Novartis India's Interest Expense for the
three
months ended in Mar. 2026 was ₹-1 Mil.
Novartis India's interest coverage for the quarter that ended in Mar. 2026 was 287.57.
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. Novartis India Ltd has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for Novartis India's Interest Coverage or its related term are showing as below:
BOM:500672'
s Interest Coverage Range Over the Past 10 Years
Min: 0.2 Med: 33.61 Max: 122.68
Current: 73.03
BOM:500672's Interest Coverage is ranked better than 75.77% of 685
companies
in the Drug Manufacturers industry
Industry Median: 12.75
vs BOM:500672: 73.03
Novartis India (BOM:500672) 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 .
Novartis India Interest Coverage Related Terms
Novartis India Interest Coverage Historical Data
* Premium members only.
The historical data trend for Novartis 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:500672 vs ZTS, UTHR: Interest Coverage Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Novartis 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.
Novartis India Interest Coverage vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Novartis India's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Novartis 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.
Novartis India (BOM:500672) has a Interest Coverage of 287.57 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Novartis India and its competitors. This is 756% above median its historical median of 33.61. Over the past decade, Novartis India's Interest Coverage has ranged from 0.20 to 122.68. According to the industry distribution chart, Novartis India ranks #166 out of 685 companies in the Drug Manufacturers industry, placing it in the top 24.2%.
Is Novartis India's Interest Coverage too high?
Novartis India's current Interest Coverage of 287.57 is 756% above median its 10-year median of 33.61. Over the past 10 years, this metric has ranged from a low of 0.20 to a high of 122.68. The Drug Manufacturers industry median Interest Coverage is 12.75. Novartis India's value of 287.57 is 2155.5% above this industry median. Based on the distribution chart, Novartis India ranks #166 out of 685 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Novartis India has a GF Score™ of 59/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Novartis India's Interest Coverage compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Novartis India ranks #166 out of 685 companies for Interest Coverage. This places Novartis India in the top 24% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 12.75. Novartis India's value of 287.57 is 2155.5% above this benchmark. Historically, Novartis India's own Interest Coverage has ranged from 0.20 to 122.68 over the past decade. While the company's 10-year median is 33.61 vs. the industry median of 12.75, Novartis 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 12.75, based on 685 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. Novartis India's current Interest Coverage of 287.57 is 2155.5% 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 Novartis India 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. Novartis India's current Interest Coverage is 287.57, which is 756% above median its own 10-year median of 33.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Novartis India stock overvalued right now?
Based on GuruFocus' analysis, Novartis India (BOM:500672) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹927.81, compared to a current price of ₹1,452.30 — trading 56.5% above its estimated fair value. The current Interest Coverage is 287.57, which is 756% above median its 10-year median of 33.61 and 2155.5% above the Drug Manufacturers industry median of 12.75. Novartis India's overall GF Score™ is 59/100 with 7 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 Novartis India (BOM:500672), the current Interest Coverage is 287.57 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 Novartis India (BOM:500672) Overvalued in 2026?
Based on GuruFocus' analysis, Novartis India stock appears to be overvalued.
The current stock price of ₹1,452.30 is trading 56.5% above its estimated GF Value™ of ₹927.81.
GuruFocus considers Novartis India to be Significantly Overvalued.
Key valuation signals for BOM:500672:
Interest Coverage: 287.57 (756% above median its 10-year median of 33.61)
GF Value™: ₹927.81 vs. price of ₹1,452.30 (56.5% above fair value)
Industry Position: 2155.5% above the Drug Manufacturers median (#166 of 685)
No single metric tells the full story. See the BOM:500672 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Novartis India Ltd is an Indian-based pharmaceutical company. The company is engaged in the trading of Drugs and Pharmaceuticals. It derives revenue from operations in India. The company operates in a single business segment, namely Pharmaceutical Business. Its Pharmaceutical business focuses on Bone and Pain, Transplantation Immunology, and Neurosciences.
59GF Score
Get the complete analysis for BOM:500672
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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