Competent Automobiles CoBOM:531041 -1.11%74 Interest Coverage is 2.88 as of Mar. 2026, which is 1% above its 10-year median of 2.84. GuruFocus rates BOM:531041 with a GF Score™ of 74/100 and a GF Value™ of ₹573.32 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 1,067 Vehicles & Parts companies, Competent Automobiles Co ranks worse than 85.47% 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. Competent Automobiles Co's
Operating Income
for the
three
months ended in Mar. 2026 was ₹201 Mil. Competent Automobiles Co's Interest Expense for the
three
months ended in Mar. 2026 was ₹-70 Mil.
Competent Automobiles Co's interest coverage for the quarter that ended in Mar. 2026 was 2.88.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Competent Automobiles Co's Interest Coverage or its related term are showing as below:
BOM:531041'
s Interest Coverage Range Over the Past 10 Years
Min: 1.68 Med: 2.84 Max: 3.76
Current: 1.68
BOM:531041's Interest Coverage is ranked worse than 85.47% of 1067
companies
in the Vehicles & Parts industry
Industry Median: 8.41
vs BOM:531041: 1.68
Competent Automobiles Co (BOM:531041) 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 .
Competent Automobiles Co Interest Coverage Related Terms
Competent Automobiles Co Interest Coverage Historical Data
* 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:531041 vs CVNA, PAG, ALTB: Interest Coverage Comparison
For the Auto & Truck Dealerships subindustry, Competent Automobiles Co'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.
Competent Automobiles Co Interest Coverage vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Competent Automobiles Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Competent Automobiles Co's Interest Coverage falls into.
Competent Automobiles Co 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.
Competent Automobiles Co (BOM:531041) has a Interest Coverage of 2.88 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Competent Automobiles Co and its competitors. This is near median its historical median of 2.84. Over the past decade, Competent Automobiles Co's Interest Coverage has ranged from 1.68 to 3.76. According to the industry distribution chart, Competent Automobiles Co ranks #912 out of 1067 companies in the Vehicles & Parts industry, placing it in the top 85.5%.
Is Competent Automobiles Co's Interest Coverage too high?
Competent Automobiles Co's current Interest Coverage of 2.88 is near median its 10-year median of 2.84. Over the past 10 years, this metric has ranged from a low of 1.68 to a high of 3.76. The Vehicles & Parts industry median Interest Coverage is 8.41. Competent Automobiles Co's value of 2.88 is 65.8% below this industry median. Based on the distribution chart, Competent Automobiles Co ranks #912 out of 1067 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, Competent Automobiles Co has a GF Score™ of 74/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Competent Automobiles Co's Interest Coverage compare to CVNA and PAG?
According to the Vehicles & Parts industry distribution chart, Competent Automobiles Co ranks #912 out of 1067 companies for Interest Coverage. This places Competent Automobiles Co in the lower half of its industry. The industry median Interest Coverage is 8.41. Competent Automobiles Co's value of 2.88 is 65.8% below this benchmark. Historically, Competent Automobiles Co's own Interest Coverage has ranged from 1.68 to 3.76 over the past decade. While the company's 10-year median is 2.84 vs. the industry median of 8.41, Competent Automobiles Co 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 8.41, based on 1,067 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. Competent Automobiles Co's current Interest Coverage of 2.88 is 65.8% 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 Competent Automobiles Co and its competitors. For the Vehicles & Parts industry, the median Interest Coverage is 8.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Competent Automobiles Co's current Interest Coverage is 2.88, which is near median its own 10-year median of 2.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Competent Automobiles Co stock overvalued right now?
Based on GuruFocus' analysis, Competent Automobiles Co (BOM:531041) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹573.32, compared to a current price of ₹357.00 — trading 37.7% below its estimated fair value. The current Interest Coverage is 2.88, which is near median its 10-year median of 2.84 and 65.8% below the Vehicles & Parts industry median of 8.41. Competent Automobiles Co's overall GF Score™ is 74/100 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 Competent Automobiles Co (BOM:531041), the current Interest Coverage is 2.88 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 Competent Automobiles Co (BOM:531041) Overvalued in 2026?
Based on GuruFocus' analysis, Competent Automobiles Co stock appears to be undervalued.
The current stock price of ₹357.00 is trading 37.7% below its estimated GF Value™ of ₹573.32.
GuruFocus considers Competent Automobiles Co to be Significantly Undervalued.
Key valuation signals for BOM:531041:
Interest Coverage: 2.88 (near median its 10-year median of 2.84)
GF Value™: ₹573.32 vs. price of ₹357.00 (37.7% below fair value)
Industry Position: 65.8% below the Vehicles & Parts median (#912 of 1067)
No single metric tells the full story. See the BOM:531041 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Competent Automobiles Co Ltd is an authorised Maruti and Nexa dealership across different regions in India. It is mainly in the business of trading and servicing of Maruti Suzuki vehicles. The company operates in two segments, the Showroom segment and the Services & Spares segment. It receives maximum revenue from the Showroom segment, which deals with the purchase and sale of vehicles manufactured by Maruti Suzuki India Limited.
74GF Score
Get the complete analysis for BOM:531041
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