Scan SteelsBOM:511672 +11.43%65 Interest Coverage is 5.14 as of Mar. 2026, which is 58% above its 10-year median of 3.26. GuruFocus rates BOM:511672 with a GF Score™ of 65/100 and a GF Value™ of ₹37.63 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 457 Steel companies, Scan Steels ranks worse than 54.49% 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. Scan Steels's
Operating Income
for the
three
months ended in Mar. 2026 was ₹100 Mil. Scan Steels's Interest Expense for the
three
months ended in Mar. 2026 was ₹-20 Mil.
Scan Steels's interest coverage for the quarter that ended in Mar. 2026 was 5.14.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Scan Steels's Interest Coverage or its related term are showing as below:
BOM:511672'
s Interest Coverage Range Over the Past 10 Years
Min: 1.16 Med: 3.26 Max: 8.19
Current: 3.99
BOM:511672's Interest Coverage is ranked worse than 54.49% of 457
companies
in the Steel industry
Industry Median: 4.41
vs BOM:511672: 3.99
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 .
Scan Steels Interest Coverage Related Terms
Scan Steels Interest Coverage Historical Data
* Premium members only.
The historical data trend for Scan Steels'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:511672 vs NUE, STLD, RS: Interest Coverage Comparison
For the Steel subindustry, Scan Steels'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.
Scan Steels Interest Coverage vs Steel Industry
For the Steel industry and Basic Materials sector, Scan Steels's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Scan Steels'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.
Scan Steels (BOM:511672) has a Interest Coverage of 5.14 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Scan Steels and its competitors. This is 58% above median its historical median of 3.26. Over the past decade, Scan Steels' Interest Coverage has ranged from 1.16 to 8.19. According to the industry distribution chart, Scan Steels ranks #249 out of 457 companies in the Steel industry, placing it in the top 54.5%.
Is Scan Steels' Interest Coverage too high?
Scan Steels' current Interest Coverage of 5.14 is 58% above median its 10-year median of 3.26. Over the past 10 years, this metric has ranged from a low of 1.16 to a high of 8.19. The Steel industry median Interest Coverage is 4.41. Scan Steels' value of 5.14 is 16.6% above this industry median. Based on the distribution chart, Scan Steels ranks #249 out of 457 companies in the Steel industry, which is below the industry midpoint. Overall, Scan Steels has a GF Score™ of 65/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Scan Steels' Interest Coverage compare to NUE and STLD?
According to the Steel industry distribution chart, Scan Steels ranks #249 out of 457 companies for Interest Coverage. This places Scan Steels in the lower half of its industry. The industry median Interest Coverage is 4.41. Scan Steels' value of 5.14 is 16.6% above this benchmark. Historically, Scan Steels' own Interest Coverage has ranged from 1.16 to 8.19 over the past decade. While the company's 10-year median is 3.26 vs. the industry median of 4.41, Scan Steels 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 Steel company?
The median Interest Coverage among Steel companies is 4.41, based on 457 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. Scan Steels's current Interest Coverage of 5.14 is 16.6% 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 Scan Steels and its competitors. For the Steel industry, the median Interest Coverage is 4.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Scan Steels's current Interest Coverage is 5.14, which is 58% above median its own 10-year median of 3.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Scan Steels stock overvalued right now?
Based on GuruFocus' analysis, Scan Steels (BOM:511672) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹37.63, compared to a current price of ₹47.47 — trading 26.1% above its estimated fair value. The current Interest Coverage is 5.14, which is 58% above median its 10-year median of 3.26 and 16.6% above the Steel industry median of 4.41. Scan Steels' overall GF Score™ is 65/100 with 8 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 Scan Steels (BOM:511672), the current Interest Coverage is 5.14 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 Scan Steels (BOM:511672) Overvalued in 2026?
Based on GuruFocus' analysis, Scan Steels stock appears to be overvalued.
The current stock price of ₹47.47 is trading 26.1% above its estimated GF Value™ of ₹37.63.
GuruFocus considers Scan Steels to be Modestly Overvalued.
Key valuation signals for BOM:511672:
Interest Coverage: 5.14 (58% above median its 10-year median of 3.26)
GF Value™: ₹37.63 vs. price of ₹47.47 (26.1% above fair value)
Industry Position: 16.6% above the Steel median (#249 of 457)
No single metric tells the full story. See the BOM:511672 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Scan Steels Ltd is an Indian-based iron and steel company. It is engaged in the manufacturing of steel products and in the generation of power for captive consumption. The company operates through a single segment, which is Steel Manufacturing. Its products include Shrishtii TMT, MS Billets, Shrishtii Roofing, Shrishtii Structural, and Fly Ash Bricks.
65GF Score
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