Ambika Cotton Mills (BOM:531978) Interest Coverage: 13.17 (As of Mar. 2026) — Near Median

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BOM:531978 Ambika Cotton Mills Ltd BOM:531978
74 GF Score
Price ₹1,726.05
GF Value ₹1,560.05
Valuation Modestly Overvalued
! 8 Warning Signs
View Full Analysis

What is Ambika Cotton Mills Interest Coverage?

Ambika Cotton Mills BOM:531978 -0.33% 74 Interest Coverage is 13.17 as of Mar. 2026, which is 1% above its 10-year median of 13.04. GuruFocus rates BOM:531978 with a GF Score™ of 74/100 and a GF Value™ of ₹1,560.05 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 733 Manufacturing - Apparel & Accessories companies, Ambika Cotton Mills ranks better than 57.3% 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. Ambika Cotton Mills's Operating Income for the three months ended in Mar. 2026 was ₹358 Mil. Ambika Cotton Mills's Interest Expense for the three months ended in Mar. 2026 was ₹-27 Mil. Ambika Cotton Mills's interest coverage for the quarter that ended in Mar. 2026 was 13.17. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Ambika Cotton Mills's Interest Coverage or its related term are showing as below:

BOM:531978' s Interest Coverage Range Over the Past 10 Years
Min: 4.16   Med: 13.04   Max: 182.4
Current: 7.84


BOM:531978's Interest Coverage is ranked better than
57.3% of 733 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 5.44 vs BOM:531978: 7.84

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Ambika Cotton Mills  (BOM:531978) 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 .


Ambika Cotton Mills Interest Coverage Related Terms


Ambika Cotton Mills Interest Coverage Historical Data

* Premium members only.

The historical data trend for Ambika Cotton Mills'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.

Ambika Cotton Mills Interest Coverage Chart

Ambika Cotton Mills Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 182.40 22.09 4.16 4.99 8.60

Ambika Cotton Mills Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.46 5.47 6.35 7.87 13.17

Ambika Cotton Mills Interest Coverage Competitor Comparison

For the Textile Manufacturing subindustry, Ambika Cotton Mills'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.


Ambika Cotton Mills Interest Coverage vs Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Ambika Cotton Mills's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Ambika Cotton Mills's Interest Coverage falls into.


BOM:531978
74GF Score
Ambika Cotton Mills Ltd BOM:531978
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Ambika Cotton Mills 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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Ambika Cotton Mills's Interest Coverage for the fiscal year that ended in Mar. 2026 is calculated as

Here, for the fiscal year that ended in Mar. 2026, Ambika Cotton Mills's Interest Expense was ₹-127 Mil. Its Operating Income was ₹1,090 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹0 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2026 )/Interest Expense (A: Mar. 2026 )
=-1*1090.4/-126.8
=8.60

Ambika Cotton Mills's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Ambika Cotton Mills's Interest Expense was ₹-27 Mil. Its Operating Income was ₹358 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹0 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*358.1/-27.2
=13.17

* 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.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 13.17 mean?
Ambika Cotton Mills (BOM:531978) has a Interest Coverage of 13.17 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Ambika Cotton Mills and its competitors. This is near median its historical median of 13.04. Over the past decade, Ambika Cotton Mills' Interest Coverage has ranged from 4.16 to 182.40. According to the industry distribution chart, Ambika Cotton Mills ranks #313 out of 733 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 42.7%.
Is Ambika Cotton Mills' Interest Coverage too high?
Ambika Cotton Mills' current Interest Coverage of 13.17 is near median its 10-year median of 13.04. Over the past 10 years, this metric has ranged from a low of 4.16 to a high of 182.40. The Manufacturing - Apparel & Accessories industry median Interest Coverage is 5.44. Ambika Cotton Mills' value of 13.17 is 142.1% above this industry median. Based on the distribution chart, Ambika Cotton Mills ranks #313 out of 733 companies in the Manufacturing - Apparel & Accessories industry, which is above the industry midpoint. Overall, Ambika Cotton Mills has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ambika Cotton Mills' Interest Coverage compare to competitors?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Ambika Cotton Mills ranks #313 out of 733 companies for Interest Coverage. This puts Ambika Cotton Mills in the upper half of its industry. The industry median Interest Coverage is 5.44. Ambika Cotton Mills' value of 13.17 is 142.1% above this benchmark. Historically, Ambika Cotton Mills' own Interest Coverage has ranged from 4.16 to 182.40 over the past decade. While the company's 10-year median is 13.04 vs. the industry median of 5.44, Ambika Cotton Mills 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 Manufacturing - Apparel & Accessories company?
The median Interest Coverage among Manufacturing - Apparel & Accessories companies is 5.44, based on 733 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. Ambika Cotton Mills's current Interest Coverage of 13.17 is 142.1% 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 Ambika Cotton Mills and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Interest Coverage is 5.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ambika Cotton Mills's current Interest Coverage is 13.17, which is near median its own 10-year median of 13.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ambika Cotton Mills stock overvalued right now?
Based on GuruFocus' analysis, Ambika Cotton Mills (BOM:531978) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹1,560.05, compared to a current price of ₹1,726.05 — trading 10.6% above its estimated fair value. The current Interest Coverage is 13.17, which is near median its 10-year median of 13.04 and 142.1% above the Manufacturing - Apparel & Accessories industry median of 5.44. Ambika Cotton Mills' overall GF Score™ is 74/100 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 Ambika Cotton Mills (BOM:531978), the current Interest Coverage is 13.17 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 Ambika Cotton Mills (BOM:531978) Overvalued in 2026?

Based on GuruFocus' analysis, Ambika Cotton Mills stock appears to be overvalued. The current stock price of ₹1,726.05 is trading 10.6% above its estimated GF Value™ of ₹1,560.05. GuruFocus considers Ambika Cotton Mills to be Modestly Overvalued.

Key valuation signals for BOM:531978:

  • Interest Coverage: 13.17 (near median its 10-year median of 13.04)
  • GF Value™: ₹1,560.05 vs. price of ₹1,726.05 (10.6% above fair value)
  • GF Score™: 74/100 with 8 warning signs
  • Industry Position: 142.1% above the Manufacturing - Apparel & Accessories median (#313 of 733)

No single metric tells the full story. See the BOM:531978 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Ambika Cotton Mills Business Description

Other Exchanges AMBIKCO:India
Address No. 9A, 15, Valluvar Street, Sivanandha Colony, Coimbatore, TN, IND, 641012
Ambika Cotton Mills Ltd engages in the manufacture of cotton yarns for hosiery and weaving. The Textiles produces compact cotton; hard and soft twist; cylindrical dye cone; and s and z twist yarns. The Windmills generate power from windmills. Geographically, the company generates revenue from Europe, Asia, North America, Africa, and India. The company generates majority of its revenue from Asia.
74GF Score

Get the complete analysis for BOM:531978

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹1,726.05
Price
₹1,560.05
GF Value