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. Praj Industries's
Operating Income
for the
three
months ended in Mar. 2026 was ₹-38 Mil. Praj Industries's Interest Expense for the
three
months ended in Mar. 2026 was ₹-52 Mil.
did not have earnings to cover the interest expense.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Praj Industries's Interest Coverage or its related term are showing as below:
BOM:522205'
s Interest Coverage Range Over the Past 10 Years
Min: 2.28 Med: 36.06 Max: 99.48
Current: 2.77
BOM:522205's Interest Coverage is ranked worse than 75.61% of 1349
companies
in the Construction industry
Industry Median: 7.92
vs BOM:522205: 2.77
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 .
Praj Industries Interest Coverage Related Terms
Praj Industries Interest Coverage Historical Data
* Premium members only.
The historical data trend for Praj Industries'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:522205 vs PWR, FIX, EME: Interest Coverage Comparison
For the Engineering & Construction subindustry, Praj Industries'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.
Praj Industries Interest Coverage vs Construction Industry
For the Construction industry and Industrials sector, Praj Industries's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Praj Industries'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:
Praj Industries did not have earnings to cover the 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.
What does a Interest Coverage of 0 (At Loss) mean?
Praj Industries (BOM:522205) has a Interest Coverage of 0 (At Loss) as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Praj Industries and its competitors. Over the past decade, Praj Industries' Interest Coverage has ranged from 2.28 to 99.48. According to the industry distribution chart, Praj Industries ranks #1020 out of 1349 companies in the Construction industry, placing it in the top 75.6%.
Is Praj Industries' Interest Coverage too high?
Praj Industries' current Interest Coverage is 0 (At Loss). Over the past 10 years, this metric has ranged from a low of 2.28 to a high of 99.48. Based on the distribution chart, Praj Industries ranks #1020 out of 1349 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, Praj Industries has a GF Score™ of 92/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Praj Industries' Interest Coverage compare to PWR and FIX?
According to the Construction industry distribution chart, Praj Industries ranks #1020 out of 1349 companies for Interest Coverage. This places Praj Industries in the lower half of its industry. The industry median Interest Coverage is 7.92. Historically, Praj Industries' own Interest Coverage has ranged from 2.28 to 99.48 over the past decade. 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 Construction company?
The median Interest Coverage among Construction companies is 7.92, based on 1,349 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. 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 Praj Industries and its competitors. For the Construction industry, the median Interest Coverage is 7.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Praj Industries's current Interest Coverage is 0 (At Loss). However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Praj Industries stock overvalued right now?
Based on GuruFocus' analysis, Praj Industries (BOM:522205) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹491.75, compared to a current price of ₹359.80 — trading 26.8% below its estimated fair value. The current Interest Coverage is 0 (At Loss). Praj Industries' overall GF Score™ is 92/100 with 4 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 Praj Industries (BOM:522205), the current Interest Coverage is 0 (At Loss) 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 Praj Industries (BOM:522205) Overvalued in 2026?
Based on GuruFocus' analysis, Praj Industries stock appears to be undervalued.
The current stock price of ₹359.80 is trading 26.8% below its estimated GF Value™ of ₹491.75.
GuruFocus considers Praj Industries to be Modestly Undervalued.
Key valuation signals for BOM:522205:
Interest Coverage: 0 (At Loss)
GF Value™: ₹491.75 vs. price of ₹359.80 (26.8% below fair value)
No single metric tells the full story. See the BOM:522205 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Praj Industries Ltd is an engineering company based in India. The company operates in a single segment namely Process and Project Engineering. Its business line consists of BioEnergy, High Purity Solutions, Brewery Plants, Wastewater Treatment, Bioproducts, Skid Engineering and Process Solutions, and Critical Process Equipment and Systems.
92GF Score
Get the complete analysis for BOM:522205
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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