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Akar Auto IndustriesBOM:530621 +7.82%69 Interest Coverage is 1.54 as of Mar. 2026, which is 22% below its 10-year median of 1.98. GuruFocus rates BOM:530621 with a GF Score™ of 69/100 and a GF Value™ of ₹104.57 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,068 Vehicles & Parts companies, Akar Auto Industries ranks worse than 88.76% 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. Akar Auto Industries's
Operating Income
for the
three
months ended in Mar. 2026 was ₹43 Mil. Akar Auto Industries's Interest Expense for the
three
months ended in Mar. 2026 was ₹-28 Mil.
Akar Auto Industries's interest coverage for the quarter that ended in Mar. 2026 was 1.54.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Akar Auto Industries's Interest Coverage or its related term are showing as below:
BOM:530621'
s Interest Coverage Range Over the Past 10 Years
Min: 0.52 Med: 1.98 Max: 2.56
Current: 1.4
BOM:530621's Interest Coverage is ranked worse than 88.76% of 1068
companies
in the Vehicles & Parts industry
Industry Median: 8.385
vs BOM:530621: 1.40
Akar Auto Industries (BOM:530621) Interest Coverage Explanation
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 .
Akar Auto Industries Interest Coverage Related Terms
Akar Auto Industries Interest Coverage Historical Data
* Premium members only.
The historical data trend for Akar Auto 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:530621 vs ORLY, AZO: Interest Coverage Comparison
For the Auto Parts subindustry, Akar Auto 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.
Akar Auto Industries Interest Coverage vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Akar Auto Industries's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Akar Auto Industries's Interest Coverage falls into.
Akar Auto Industries Interest Coverage Calculation
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.
Akar Auto Industries (BOM:530621) has a Interest Coverage of 1.54 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Akar Auto Industries and its competitors. This is 22% below median its historical median of 1.98. Over the past decade, Akar Auto Industries' Interest Coverage has ranged from 0.52 to 2.56. According to the industry distribution chart, Akar Auto Industries ranks #948 out of 1068 companies in the Vehicles & Parts industry, placing it in the top 88.8%.
Is Akar Auto Industries' Interest Coverage too high?
Akar Auto Industries' current Interest Coverage of 1.54 is 22% below median its 10-year median of 1.98. Over the past 10 years, this metric has ranged from a low of 0.52 to a high of 2.56. The Vehicles & Parts industry median Interest Coverage is 8.39. Akar Auto Industries' value of 1.54 is 81.6% below this industry median. Based on the distribution chart, Akar Auto Industries ranks #948 out of 1068 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, Akar Auto Industries has a GF Score™ of 69/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Akar Auto Industries' Interest Coverage compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Akar Auto Industries ranks #948 out of 1068 companies for Interest Coverage. This places Akar Auto Industries in the lower half of its industry. The industry median Interest Coverage is 8.39. Akar Auto Industries' value of 1.54 is 81.6% below this benchmark. Historically, Akar Auto Industries' own Interest Coverage has ranged from 0.52 to 2.56 over the past decade. While the company's 10-year median is 1.98 vs. the industry median of 8.39, Akar Auto Industries has consistently been below 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 8.39, 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. Akar Auto Industries's current Interest Coverage of 1.54 is 81.6% below 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 Akar Auto Industries and its competitors. For the Vehicles & Parts industry, the median Interest Coverage is 8.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Akar Auto Industries's current Interest Coverage is 1.54, which is 22% below median its own 10-year median of 1.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Akar Auto Industries stock overvalued right now?
Based on GuruFocus' analysis, Akar Auto Industries (BOM:530621) is currently considered Fairly Valued. The stock's GF Value™ is ₹104.57, compared to a current price of ₹98.83 — trading 5.5% below its estimated fair value. The current Interest Coverage is 1.54, which is 22% below median its 10-year median of 1.98 and 81.6% below the Vehicles & Parts industry median of 8.39. Akar Auto Industries' overall GF Score™ is 69/100 with 3 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 Akar Auto Industries (BOM:530621), the current Interest Coverage is 1.54 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 Akar Auto Industries (BOM:530621) Overvalued in 2026?
Based on GuruFocus' analysis, Akar Auto Industries stock appears to be undervalued.
The current stock price of ₹98.83 is trading 5.5% below its estimated GF Value™ of ₹104.57.
GuruFocus considers Akar Auto Industries to be Fairly Valued.
Key valuation signals for BOM:530621:
Interest Coverage: 1.54 (22% below median its 10-year median of 1.98)
GF Value™: ₹104.57 vs. price of ₹98.83 (5.5% below fair value)
Industry Position: 81.6% below the Vehicles & Parts median (#948 of 1068)
No single metric tells the full story. See the BOM:530621 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Akar Auto Industries Ltd is involved in the manufacture, export, import, and trading of a high-quality array of Hand Tools, Automotive Tools, Forged components, and Leaf springs. The company mainly produces automobile parts for heavy commercial vehicles and passenger vehicles. It operates in both domestic and international markets, with the majority of its revenue coming from the domestic segment. The Company is engaged in a single line of business, i.e., manufacturing of hand tools, auto leaf springs, parabolic springs, and commercial automotive forgings.
69GF Score
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