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SMT EngineeringBOM:538563 +4.99%53 Interest Coverage is 16.96 as of Mar. 2026, which is 40% below its 10-year median of 28.18. GuruFocus rates BOM:538563 with a GF Score™ of 53/100 and a GF Value™ of ₹283.14 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 434 Capital Markets companies, SMT Engineering ranks worse than 59.22% 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. SMT Engineering's
Operating Income
for the
three
months ended in Mar. 2026 was ₹207 Mil. SMT Engineering's Interest Expense for the
three
months ended in Mar. 2026 was ₹-12 Mil.
SMT Engineering's interest coverage for the quarter that ended in Mar. 2026 was 16.96.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for SMT Engineering's Interest Coverage or its related term are showing as below:
BOM:538563'
s Interest Coverage Range Over the Past 10 Years
Min: 9.06 Med: 28.18 Max: 47.3
Current: 9.06
BOM:538563's Interest Coverage is ranked worse than 59.22% of 434
companies
in the Capital Markets industry
Industry Median: 20.945
vs BOM:538563: 9.06
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 .
SMT Engineering Interest Coverage Related Terms
SMT Engineering Interest Coverage Historical Data
* Premium members only.
The historical data trend for SMT Engineering'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:538563 vs MS, GS, SCHW: Interest Coverage Comparison
For the Capital Markets subindustry, SMT Engineering'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.
SMT Engineering Interest Coverage vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, SMT Engineering's Interest Coverage distribution charts can be found below:
* The bar in red indicates where SMT Engineering'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.
SMT Engineering (BOM:538563) has a Interest Coverage of 16.96 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on SMT Engineering and its competitors. This is 40% below median its historical median of 28.18. Over the past decade, SMT Engineering's Interest Coverage has ranged from 9.06 to 47.30. According to the industry distribution chart, SMT Engineering ranks #257 out of 434 companies in the Capital Markets industry, placing it in the top 59.2%.
Is SMT Engineering's Interest Coverage too high?
SMT Engineering's current Interest Coverage of 16.96 is 40% below median its 10-year median of 28.18. Over the past 10 years, this metric has ranged from a low of 9.06 to a high of 47.30. The Capital Markets industry median Interest Coverage is 20.95. SMT Engineering's value of 16.96 is 19% below this industry median. Based on the distribution chart, SMT Engineering ranks #257 out of 434 companies in the Capital Markets industry, which is below the industry midpoint. Overall, SMT Engineering has a GF Score™ of 53/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SMT Engineering's Interest Coverage compare to MS and GS?
According to the Capital Markets industry distribution chart, SMT Engineering ranks #257 out of 434 companies for Interest Coverage. This places SMT Engineering in the lower half of its industry. The industry median Interest Coverage is 20.95. SMT Engineering's value of 16.96 is 19% below this benchmark. Historically, SMT Engineering's own Interest Coverage has ranged from 9.06 to 47.30 over the past decade. While the company's 10-year median is 28.18 vs. the industry median of 20.95, SMT Engineering 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 Capital Markets company?
The median Interest Coverage among Capital Markets companies is 20.95, based on 434 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. SMT Engineering's current Interest Coverage of 16.96 is 19% 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 SMT Engineering and its competitors. For the Capital Markets industry, the median Interest Coverage is 20.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SMT Engineering's current Interest Coverage is 16.96, which is 40% below median its own 10-year median of 28.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SMT Engineering stock overvalued right now?
Based on GuruFocus' analysis, SMT Engineering (BOM:538563) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹283.14, compared to a current price of ₹466.00 — trading 64.6% above its estimated fair value. The current Interest Coverage is 16.96, which is 40% below median its 10-year median of 28.18 and 19% below the Capital Markets industry median of 20.95. SMT Engineering's overall GF Score™ is 53/100 with 5 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 SMT Engineering (BOM:538563), the current Interest Coverage is 16.96 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 SMT Engineering (BOM:538563) Overvalued in 2026?
Based on GuruFocus' analysis, SMT Engineering stock appears to be overvalued.
The current stock price of ₹466.00 is trading 64.6% above its estimated GF Value™ of ₹283.14.
GuruFocus considers SMT Engineering to be Significantly Overvalued.
Key valuation signals for BOM:538563:
Interest Coverage: 16.96 (40% below median its 10-year median of 28.18)
GF Value™: ₹283.14 vs. price of ₹466.00 (64.6% above fair value)
Industry Position: 19% below the Capital Markets median (#257 of 434)
No single metric tells the full story. See the BOM:538563 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SMT Engineering Ltd and its subsidiaries, the Group, operate in share trading, manufacturing plastic processing machinery globally, and other businesses. Through its subsidiary, the company specializes in HDPE and PVC extrusion systems, drip irrigation solutions, and related plastic pipe manufacturing machinery, with CNC facilities in Indore, India. The company is also engaged in trading commodities and investing in mutual funds, shares, and securities, with the majority of its revenue generated from sales of shares and securities.
53GF Score
Get the complete analysis for BOM:538563
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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