NMDCBOM:526371 -0.87%87 Interest Coverage is 48.47 as of Mar. 2026, which is 69% below its 10-year median of 156.54. GuruFocus rates BOM:526371 with a GF Score™ of 87/100 and a GF Value™ of ₹95.83 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 456 Steel companies, NMDC ranks better than 86.84% 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. NMDC's
Operating Income
for the
three
months ended in Mar. 2026 was ₹24,919 Mil. NMDC's Interest Expense for the
three
months ended in Mar. 2026 was ₹-514 Mil.
NMDC's interest coverage for the quarter that ended in Mar. 2026 was 48.47.
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. NMDC Ltd has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for NMDC's Interest Coverage or its related term are showing as below:
BOM:526371'
s Interest Coverage Range Over the Past 10 Years
Min: 43.5 Med: 156.54 Max: 578.15
Current: 72.46
BOM:526371's Interest Coverage is ranked better than 86.84% of 456
companies
in the Steel industry
Industry Median: 4.445
vs BOM:526371: 72.46
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 .
NMDC Interest Coverage Related Terms
NMDC Interest Coverage Historical Data
* Premium members only.
The historical data trend for NMDC'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:526371 vs NUE, STLD, RS: Interest Coverage Comparison
For the Steel subindustry, NMDC'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.
NMDC Interest Coverage vs Steel Industry
For the Steel industry and Basic Materials sector, NMDC's Interest Coverage distribution charts can be found below:
* The bar in red indicates where NMDC'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.
NMDC (BOM:526371) has a Interest Coverage of 48.47 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on NMDC and its competitors. This is 69% below median its historical median of 156.54. Over the past decade, NMDC's Interest Coverage has ranged from 43.50 to 578.15. According to the industry distribution chart, NMDC ranks #60 out of 456 companies in the Steel industry, placing it in the top 13.2%.
Is NMDC's Interest Coverage too high?
NMDC's current Interest Coverage of 48.47 is 69% below median its 10-year median of 156.54. Over the past 10 years, this metric has ranged from a low of 43.50 to a high of 578.15. The Steel industry median Interest Coverage is 4.45. NMDC's value of 48.47 is 990.4% above this industry median. Based on the distribution chart, NMDC ranks #60 out of 456 companies in the Steel industry, which is in the top quartile — a strong position relative to peers. Overall, NMDC has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does NMDC's Interest Coverage compare to NUE and STLD?
According to the Steel industry distribution chart, NMDC ranks #60 out of 456 companies for Interest Coverage. This places NMDC in the top 13% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 4.45. NMDC's value of 48.47 is 990.4% above this benchmark. Historically, NMDC's own Interest Coverage has ranged from 43.50 to 578.15 over the past decade. While the company's 10-year median is 156.54 vs. the industry median of 4.45, NMDC 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 4.45, based on 456 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. NMDC's current Interest Coverage of 48.47 is 990.4% 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 NMDC and its competitors. For the Steel industry, the median Interest Coverage is 4.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NMDC's current Interest Coverage is 48.47, which is 69% below median its own 10-year median of 156.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NMDC stock overvalued right now?
Based on GuruFocus' analysis, NMDC (BOM:526371) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹95.83, compared to a current price of ₹84.40 — trading 11.9% below its estimated fair value. The current Interest Coverage is 48.47, which is 69% below median its 10-year median of 156.54 and 990.4% above the Steel industry median of 4.45. NMDC's overall GF Score™ is 87/100 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 NMDC (BOM:526371), the current Interest Coverage is 48.47 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 NMDC (BOM:526371) Overvalued in 2026?
Based on GuruFocus' analysis, NMDC stock appears to be undervalued.
The current stock price of ₹84.40 is trading 11.9% below its estimated GF Value™ of ₹95.83.
GuruFocus considers NMDC to be Modestly Undervalued.
Key valuation signals for BOM:526371:
Interest Coverage: 48.47 (69% below median its 10-year median of 156.54)
GF Value™: ₹95.83 vs. price of ₹84.40 (11.9% below fair value)
Industry Position: 990.4% above the Steel median (#60 of 456)
No single metric tells the full story. See the BOM:526371 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NMDC Ltd is engaged in the mining of a wide range of minerals, including iron ore, copper, sponge iron, rock phosphate, limestone, dolomite, gypsum, bentonite, magnesite, diamond, tin, tungsten, graphite, and beach sands. The company also owns a windmill project in Karnataka. Its business segments include Iron ore, and All others (Pellets, Other Minerals & Services). The iron ore segment accounts for a majority of its revenue. Geographically, the company generates the majority of its revenue from the Indian domestic market.
87GF Score
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