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Eicher MotorsBOM:505200 -0.88%96 Interest Coverage is 63.47 as of Mar. 2026, which is 32% below its 10-year median of 93.98. GuruFocus rates BOM:505200 with a GF Score™ of 96/100 and a GF Value™ of ₹7,036.25 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,068 Vehicles & Parts companies, Eicher Motors ranks better than 84.83% 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. Eicher Motors's
Operating Income
for the
three
months ended in Mar. 2026 was ₹12,820 Mil. Eicher Motors's Interest Expense for the
three
months ended in Mar. 2026 was ₹-202 Mil.
Eicher Motors's interest coverage for the quarter that ended in Mar. 2026 was 63.47.
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. Eicher Motors Ltd has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for Eicher Motors's Interest Coverage or its related term are showing as below:
BOM:505200'
s Interest Coverage Range Over the Past 10 Years
Min: 69.13 Med: 93.98 Max: 570.96
Current: 69.13
BOM:505200's Interest Coverage is ranked better than 84.83% of 1068
companies
in the Vehicles & Parts industry
Industry Median: 8.335
vs BOM:505200: 69.13
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 .
Eicher Motors Interest Coverage Related Terms
Eicher Motors Interest Coverage Historical Data
* Premium members only.
The historical data trend for Eicher Motors'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:505200 vs TSLA, GM, F: Interest Coverage Comparison
For the Auto Manufacturers subindustry, Eicher Motors'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.
Eicher Motors Interest Coverage vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Eicher Motors's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Eicher Motors'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.
Eicher Motors (BOM:505200) has a Interest Coverage of 63.47 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Eicher Motors and its competitors. This is 32% below median its historical median of 93.98. Over the past decade, Eicher Motors' Interest Coverage has ranged from 69.13 to 570.96. According to the industry distribution chart, Eicher Motors ranks #162 out of 1068 companies in the Vehicles & Parts industry, placing it in the top 15.2%.
Is Eicher Motors' Interest Coverage too high?
Eicher Motors' current Interest Coverage of 63.47 is 32% below median its 10-year median of 93.98. Over the past 10 years, this metric has ranged from a low of 69.13 to a high of 570.96. The Vehicles & Parts industry median Interest Coverage is 8.34. Eicher Motors' value of 63.47 is 661.5% above this industry median. Based on the distribution chart, Eicher Motors ranks #162 out of 1068 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Eicher Motors has a GF Score™ of 96/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Eicher Motors' Interest Coverage compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Eicher Motors ranks #162 out of 1068 companies for Interest Coverage. This places Eicher Motors in the top 15% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 8.34. Eicher Motors' value of 63.47 is 661.5% above this benchmark. Historically, Eicher Motors' own Interest Coverage has ranged from 69.13 to 570.96 over the past decade. While the company's 10-year median is 93.98 vs. the industry median of 8.34, Eicher Motors 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 Vehicles & Parts company?
The median Interest Coverage among Vehicles & Parts companies is 8.34, based on 1,068 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. Eicher Motors's current Interest Coverage of 63.47 is 661.5% 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 Eicher Motors and its competitors. For the Vehicles & Parts industry, the median Interest Coverage is 8.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Eicher Motors's current Interest Coverage is 63.47, which is 32% below median its own 10-year median of 93.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Eicher Motors stock overvalued right now?
Based on GuruFocus' analysis, Eicher Motors (BOM:505200) is currently considered Fairly Valued. The stock's GF Value™ is ₹7,036.25, compared to a current price of ₹7,299.30 — trading 3.7% above its estimated fair value. The current Interest Coverage is 63.47, which is 32% below median its 10-year median of 93.98 and 661.5% above the Vehicles & Parts industry median of 8.34. Eicher Motors' overall GF Score™ is 96/100 with 2 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 Eicher Motors (BOM:505200), the current Interest Coverage is 63.47 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 Eicher Motors (BOM:505200) Overvalued in 2026?
Based on GuruFocus' analysis, Eicher Motors stock appears to be overvalued.
The current stock price of ₹7,299.30 is trading 3.7% above its estimated GF Value™ of ₹7,036.25.
GuruFocus considers Eicher Motors to be Fairly Valued.
Key valuation signals for BOM:505200:
Interest Coverage: 63.47 (32% below median its 10-year median of 93.98)
GF Value™: ₹7,036.25 vs. price of ₹7,299.30 (3.7% above fair value)
Industry Position: 661.5% above the Vehicles & Parts median (#162 of 1068)
No single metric tells the full story. See the BOM:505200 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Eicher Motors Ltd is an Indian automobile manufacturer and is also engaged in the retail of related components and accessories. The company manufactures two-wheeler motorcycles and commercial vehicles. The Motorcycles division, which derives its key revenue, produces motorcycles through the Royal Enfield brand. The Commercial Vehicles division, through a joint venture with Volvo, produces trucks and buses for sale in India and other developing markets. The company derives the vast majority of its revenue within India and also has a presence in overseas markets.
96GF Score
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