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Chennai Ferrous IndustriesBOM:539011 -2.05%75 Interest Coverage is 0.72 as of Mar. 2026, which is 100% below its 10-year median of 211.19. GuruFocus rates BOM:539011 with a GF Score™ of 75/100 and a GF Value™ of ₹91.43 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 457 Steel companies, Chennai Ferrous Industries ranks better than 73.74% 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. Chennai Ferrous Industries's
Operating Income
for the
three
months ended in Mar. 2026 was ₹1 Mil. Chennai Ferrous Industries's Interest Expense for the
three
months ended in Mar. 2026 was ₹-1 Mil.
Chennai Ferrous Industries's interest coverage for the quarter that ended in Mar. 2026 was 0.72.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Chennai Ferrous Industries's Interest Coverage or its related term are showing as below:
BOM:539011'
s Interest Coverage Range Over the Past 10 Years
Min: 3.06 Med: 211.19 Max: 42054.67
Current: 16.47
BOM:539011's Interest Coverage is ranked better than 73.74% of 457
companies
in the Steel industry
Industry Median: 4.39
vs BOM:539011: 16.47
Chennai Ferrous Industries (BOM:539011) 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 .
Chennai Ferrous Industries Interest Coverage Related Terms
Chennai Ferrous Industries 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.
Chennai Ferrous Industries Interest Coverage Chart
BOM:539011 vs NUE, STLD, RS: Interest Coverage Comparison
For the Steel subindustry, Chennai Ferrous 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.
Chennai Ferrous Industries Interest Coverage vs Steel Industry
For the Steel industry and Basic Materials sector, Chennai Ferrous Industries's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Chennai Ferrous Industries's Interest Coverage falls into.
Chennai Ferrous 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.
Chennai Ferrous Industries (BOM:539011) has a Interest Coverage of 0.72 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Chennai Ferrous Industries and its competitors. This is 100% below median its historical median of 211.19. Over the past decade, Chennai Ferrous Industries' Interest Coverage has ranged from 3.06 to 42,054.67. According to the industry distribution chart, Chennai Ferrous Industries ranks #120 out of 457 companies in the Steel industry, placing it in the top 26.3%.
Is Chennai Ferrous Industries' Interest Coverage too high?
Chennai Ferrous Industries' current Interest Coverage of 0.72 is 100% below median its 10-year median of 211.19. Over the past 10 years, this metric has ranged from a low of 3.06 to a high of 42,054.67. The Steel industry median Interest Coverage is 4.39. Chennai Ferrous Industries' value of 0.72 is 83.6% below this industry median. Based on the distribution chart, Chennai Ferrous Industries ranks #120 out of 457 companies in the Steel industry, which is above the industry midpoint. Overall, Chennai Ferrous Industries has a GF Score™ of 75/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Chennai Ferrous Industries' Interest Coverage compare to NUE and STLD?
According to the Steel industry distribution chart, Chennai Ferrous Industries ranks #120 out of 457 companies for Interest Coverage. This puts Chennai Ferrous Industries in the upper half of its industry. The industry median Interest Coverage is 4.39. Chennai Ferrous Industries' value of 0.72 is 83.6% below this benchmark. Historically, Chennai Ferrous Industries' own Interest Coverage has ranged from 3.06 to 42,054.67 over the past decade. While the company's 10-year median is 211.19 vs. the industry median of 4.39, Chennai Ferrous 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 Steel company?
The median Interest Coverage among Steel companies is 4.39, based on 457 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. Chennai Ferrous Industries's current Interest Coverage of 0.72 is 83.6% 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 Chennai Ferrous Industries and its competitors. For the Steel industry, the median Interest Coverage is 4.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chennai Ferrous Industries's current Interest Coverage is 0.72, which is 100% below median its own 10-year median of 211.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chennai Ferrous Industries stock overvalued right now?
Based on GuruFocus' analysis, Chennai Ferrous Industries (BOM:539011) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹91.43, compared to a current price of ₹80.20 — trading 12.3% below its estimated fair value. The current Interest Coverage is 0.72, which is 100% below median its 10-year median of 211.19 and 83.6% below the Steel industry median of 4.39. Chennai Ferrous Industries' overall GF Score™ is 75/100 with 6 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 Chennai Ferrous Industries (BOM:539011), the current Interest Coverage is 0.72 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 Chennai Ferrous Industries (BOM:539011) Overvalued in 2026?
Based on GuruFocus' analysis, Chennai Ferrous Industries stock appears to be undervalued.
The current stock price of ₹80.20 is trading 12.3% below its estimated GF Value™ of ₹91.43.
GuruFocus considers Chennai Ferrous Industries to be Modestly Undervalued.
Key valuation signals for BOM:539011:
Interest Coverage: 0.72 (100% below median its 10-year median of 211.19)
GF Value™: ₹91.43 vs. price of ₹80.20 (12.3% below fair value)
Industry Position: 83.6% below the Steel median (#120 of 457)
No single metric tells the full story. See the BOM:539011 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chennai Ferrous Industries Ltd, incorporated in 2010 and based in Gummidipoondi, Tamil Nadu, India, is engaged in the trading of iron and coal-related products. The company also operates the rental of its sponge iron plant. Its business activities includes providing steel-related commodities and services for metallurgical and industrial applications. The company has diversified its operations into coal trading activities. Chennai Ferrous serves customers prominently in India. The Company's revenue has derived from coal trading activities, supplemented by lease rental income from its Sponge Iron Plant, which has been leased out.
75GF Score
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