Deepak NitriteBOM:506401 +0.49%86 Interest Coverage is 16.57 as of Mar. 2026, which is 6% above its 10-year median of 15.64. GuruFocus rates BOM:506401 with a GF Score™ of 86/100 and a GF Value™ of ₹2,189.33 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 1,232 Chemicals companies, Deepak Nitrite ranks better than 58.77% 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. Deepak Nitrite's
Operating Income
for the
three
months ended in Mar. 2026 was ₹3,134 Mil. Deepak Nitrite's Interest Expense for the
three
months ended in Mar. 2026 was ₹-189 Mil.
Deepak Nitrite's interest coverage for the quarter that ended in Mar. 2026 was 16.57.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Deepak Nitrite's Interest Coverage or its related term are showing as below:
BOM:506401'
s Interest Coverage Range Over the Past 10 Years
Min: 2.97 Med: 15.64 Max: 83.71
Current: 16.43
BOM:506401's Interest Coverage is ranked better than 58.77% of 1232
companies
in the Chemicals industry
Industry Median: 10.18
vs BOM:506401: 16.43
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 .
Deepak Nitrite Interest Coverage Related Terms
Deepak Nitrite Interest Coverage Historical Data
* Premium members only.
The historical data trend for Deepak Nitrite'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.
For the Chemicals subindustry, Deepak Nitrite'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.
Deepak Nitrite Interest Coverage vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Deepak Nitrite's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Deepak Nitrite'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.
Deepak Nitrite (BOM:506401) has a Interest Coverage of 16.57 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Deepak Nitrite and its competitors. This is near median its historical median of 15.64. Over the past decade, Deepak Nitrite's Interest Coverage has ranged from 2.97 to 83.71. According to the industry distribution chart, Deepak Nitrite ranks #508 out of 1232 companies in the Chemicals industry, placing it in the top 41.2%.
Is Deepak Nitrite's Interest Coverage too high?
Deepak Nitrite's current Interest Coverage of 16.57 is near median its 10-year median of 15.64. Over the past 10 years, this metric has ranged from a low of 2.97 to a high of 83.71. The Chemicals industry median Interest Coverage is 10.18. Deepak Nitrite's value of 16.57 is 62.8% above this industry median. Based on the distribution chart, Deepak Nitrite ranks #508 out of 1232 companies in the Chemicals industry, which is above the industry midpoint. Overall, Deepak Nitrite has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Deepak Nitrite's Interest Coverage compare to DOW?
According to the Chemicals industry distribution chart, Deepak Nitrite ranks #508 out of 1232 companies for Interest Coverage. This puts Deepak Nitrite in the upper half of its industry. The industry median Interest Coverage is 10.18. Deepak Nitrite's value of 16.57 is 62.8% above this benchmark. Historically, Deepak Nitrite's own Interest Coverage has ranged from 2.97 to 83.71 over the past decade. While the company's 10-year median is 15.64 vs. the industry median of 10.18, Deepak Nitrite 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 Chemicals company?
The median Interest Coverage among Chemicals companies is 10.18, based on 1,232 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. Deepak Nitrite's current Interest Coverage of 16.57 is 62.8% 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 Deepak Nitrite and its competitors. For the Chemicals industry, the median Interest Coverage is 10.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Deepak Nitrite's current Interest Coverage is 16.57, which is near median its own 10-year median of 15.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Deepak Nitrite stock overvalued right now?
Based on GuruFocus' analysis, Deepak Nitrite (BOM:506401) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹2,189.33, compared to a current price of ₹1,610.20 — trading 26.5% below its estimated fair value. The current Interest Coverage is 16.57, which is near median its 10-year median of 15.64 and 62.8% above the Chemicals industry median of 10.18. Deepak Nitrite's overall GF Score™ is 86/100 with 6 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 Deepak Nitrite (BOM:506401), the current Interest Coverage is 16.57 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 Deepak Nitrite (BOM:506401) Overvalued in 2026?
Based on GuruFocus' analysis, Deepak Nitrite stock appears to be undervalued.
The current stock price of ₹1,610.20 is trading 26.5% below its estimated GF Value™ of ₹2,189.33.
GuruFocus considers Deepak Nitrite to be Modestly Undervalued.
Key valuation signals for BOM:506401:
Interest Coverage: 16.57 (near median its 10-year median of 15.64)
GF Value™: ₹2,189.33 vs. price of ₹1,610.20 (26.5% below fair value)
Industry Position: 62.8% above the Chemicals median (#508 of 1232)
No single metric tells the full story. See the BOM:506401 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Deepak Nitrite Ltd is a chemical manufacturing company. The company has two business segments; Advanced Intermediates, and Phenolics. Maximum revenue is generated from the Phenolics segment which manufactures chemicals like Cumene, Phenol, Acetone, Isopropyl Alcohol, and Alpha Methyl Styrene (AMS) among others. The chemicals are used in various industries such as Laminate & Plywood, Automotive, Construction, Pharmaceuticals, Adhesives, Sanitisers, and others. Geographically, the company derives its maximum revenue from India and the rest from other countries through exports.
86GF Score
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