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Sonal MercantileBOM:538943 -4.79%69 Interest Coverage is No Debt (1) as of Jun. 2026, which is 100% below its 10-year median of 10,000.00. GuruFocus rates BOM:538943 with a GF Score™ of 69/100 and a GF Value™ of ₹117.76 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 163 Credit Services companies, Sonal Mercantile ranks worse than 613496.32% 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. Sonal Mercantile's
Operating Income
for the
three
months ended in Jun. 2026 was ₹13.8 Mil. Sonal Mercantile's Interest Expense for the
three
months ended in Jun. 2026 was ₹0.0 Mil.
Sonal Mercantile has no debt.
The higher the ratio, the stronger the company's financial strength is.
(1) 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.
The historical rank and industry rank for Sonal Mercantile's Interest Coverage or its related term are showing as below:
BOM:538943's Interest Coverage is not ranked *
in the Credit Services industry.
Industry Median: 54.85 * Ranked among companies with meaningful Interest Coverage only.
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 .
Sonal Mercantile Interest Coverage Related Terms
Sonal Mercantile Interest Coverage Historical Data
* Premium members only.
The historical data trend for Sonal Mercantile'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:538943 vs V, MA, AXP: Interest Coverage Comparison
For the Credit Services subindustry, Sonal Mercantile'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.
Sonal Mercantile Interest Coverage vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Sonal Mercantile's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Sonal Mercantile'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.
What does a Interest Coverage of No Debt <sup>(1)</sup> mean?
Sonal Mercantile (BOM:538943) has a Interest Coverage of No Debt (1) as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Sonal Mercantile and its competitors. This is 100% below median its historical median of 10,000.00. Over the past decade, Sonal Mercantile's Interest Coverage has ranged from 171.65 to 20,657.33. According to the industry distribution chart, Sonal Mercantile ranks #999999 out of 163 companies in the Credit Services industry.
Is Sonal Mercantile's Interest Coverage too high?
Sonal Mercantile's current Interest Coverage of No Debt (1) is 100% below median its 10-year median of 10,000.00. Over the past 10 years, this metric has ranged from a low of 171.65 to a high of 20,657.33. Based on the distribution chart, Sonal Mercantile ranks #999999 out of 163 companies in the Credit Services industry, which is in the bottom quartile relative to peers. Overall, Sonal Mercantile has a GF Score™ of 69/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sonal Mercantile's Interest Coverage compare to V and MA?
According to the Credit Services industry distribution chart, Sonal Mercantile ranks #999999 out of 163 companies for Interest Coverage. This places Sonal Mercantile in the lower half of its industry. The industry median Interest Coverage is 54.85. Historically, Sonal Mercantile's own Interest Coverage has ranged from 171.65 to 20,657.33 over the past decade. 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 Credit Services company?
The median Interest Coverage among Credit Services companies is 54.85, based on 163 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. 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 Sonal Mercantile and its competitors. For the Credit Services industry, the median Interest Coverage is 54.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sonal Mercantile's current Interest Coverage is No Debt (1), which is 100% below median its own 10-year median of 10,000.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sonal Mercantile stock overvalued right now?
Based on GuruFocus' analysis, Sonal Mercantile (BOM:538943) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹117.76, compared to a current price of ₹85.45 — trading 27.4% below its estimated fair value. The current Interest Coverage is No Debt (1), which is 100% below median its 10-year median of 10,000.00. Sonal Mercantile's overall GF Score™ is 69/100 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 Sonal Mercantile (BOM:538943), the current Interest Coverage is No Debt (1) as of Jun. 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 Sonal Mercantile (BOM:538943) Overvalued in 2026?
Based on GuruFocus' analysis, Sonal Mercantile stock appears to be undervalued.
The current stock price of ₹85.45 is trading 27.4% below its estimated GF Value™ of ₹117.76.
GuruFocus considers Sonal Mercantile to be Modestly Undervalued.
Key valuation signals for BOM:538943:
Interest Coverage: No Debt (1) (100% below median its 10-year median of 10,000.00)
GF Value™: ₹117.76 vs. price of ₹85.45 (27.4% below fair value)
No single metric tells the full story. See the BOM:538943 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sonal Mercantile Ltd is an India-based non-banking financial company. It is engaged in providing secured and unsecured loans and advances and is also involved in investing in quoted and unquoted securities in the stock and commodity markets. The company offers inter-corporate loans, personal loans, long-term and short-term loans, Trade financing, Bills Discounting, Project Appraisal, Loans against Guarantees, and Properties.
69GF Score
Get the complete analysis for BOM:538943
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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