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Parag Milk FoodBOM:539889 -0.33%79 Interest Coverage is 2.04 as of Mar. 2026, which is at its 10-year median of 2.04. GuruFocus rates BOM:539889 with a GF Score™ of 79/100 and a GF Value™ of ₹245.26 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,515 Consumer Packaged Goods companies, Parag Milk Food ranks worse than 80.13% 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. Parag Milk Food's
Operating Income
for the
three
months ended in Mar. 2026 was ₹418 Mil. Parag Milk Food's Interest Expense for the
three
months ended in Mar. 2026 was ₹-205 Mil.
Parag Milk Food's interest coverage for the quarter that ended in Mar. 2026 was 2.04.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Parag Milk Food's Interest Coverage or its related term are showing as below:
BOM:539889'
s Interest Coverage Range Over the Past 10 Years
Min: 1.67 Med: 2.04 Max: 6.27
Current: 2.29
BOM:539889's Interest Coverage is ranked worse than 80.13% of 1515
companies
in the Consumer Packaged Goods industry
Industry Median: 8.6
vs BOM:539889: 2.29
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 .
Parag Milk Food Interest Coverage Related Terms
Parag Milk Food Interest Coverage Historical Data
* Premium members only.
The historical data trend for Parag Milk Food'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:539889 vs KHC, GIS: Interest Coverage Comparison
For the Packaged Foods subindustry, Parag Milk Food'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.
Parag Milk Food Interest Coverage vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Parag Milk Food's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Parag Milk Food'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.
Parag Milk Food (BOM:539889) has a Interest Coverage of 2.04 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Parag Milk Food and its competitors. This is near median its historical median of 2.04. Over the past decade, Parag Milk Food's Interest Coverage has ranged from 1.67 to 6.27. According to the industry distribution chart, Parag Milk Food ranks #1214 out of 1515 companies in the Consumer Packaged Goods industry, placing it in the top 80.1%.
Is Parag Milk Food's Interest Coverage too high?
Parag Milk Food's current Interest Coverage of 2.04 is near median its 10-year median of 2.04. Over the past 10 years, this metric has ranged from a low of 1.67 to a high of 6.27. The Consumer Packaged Goods industry median Interest Coverage is 8.60. Parag Milk Food's value of 2.04 is 76.3% below this industry median. Based on the distribution chart, Parag Milk Food ranks #1214 out of 1515 companies in the Consumer Packaged Goods industry, which is in the bottom quartile relative to peers. Overall, Parag Milk Food has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Parag Milk Food's Interest Coverage compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Parag Milk Food ranks #1214 out of 1515 companies for Interest Coverage. This places Parag Milk Food in the lower half of its industry. The industry median Interest Coverage is 8.60. Parag Milk Food's value of 2.04 is 76.3% below this benchmark. Historically, Parag Milk Food's own Interest Coverage has ranged from 1.67 to 6.27 over the past decade. While the company's 10-year median is 2.04 vs. the industry median of 8.60, Parag Milk Food 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 Consumer Packaged Goods company?
The median Interest Coverage among Consumer Packaged Goods companies is 8.60, based on 1,515 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. Parag Milk Food's current Interest Coverage of 2.04 is 76.3% 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 Parag Milk Food and its competitors. For the Consumer Packaged Goods industry, the median Interest Coverage is 8.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Parag Milk Food's current Interest Coverage is 2.04, which is near median its own 10-year median of 2.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Parag Milk Food stock overvalued right now?
Based on GuruFocus' analysis, Parag Milk Food (BOM:539889) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹245.26, compared to a current price of ₹214.45 — trading 12.6% below its estimated fair value. The current Interest Coverage is 2.04, which is near median its 10-year median of 2.04 and 76.3% below the Consumer Packaged Goods industry median of 8.60. Parag Milk Food's overall GF Score™ is 79/100 with 2 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 Parag Milk Food (BOM:539889), the current Interest Coverage is 2.04 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 Parag Milk Food (BOM:539889) Overvalued in 2026?
Based on GuruFocus' analysis, Parag Milk Food stock appears to be undervalued.
The current stock price of ₹214.45 is trading 12.6% below its estimated GF Value™ of ₹245.26.
GuruFocus considers Parag Milk Food to be Modestly Undervalued.
Key valuation signals for BOM:539889:
Interest Coverage: 2.04 (near median its 10-year median of 2.04)
GF Value™: ₹245.26 vs. price of ₹214.45 (12.6% below fair value)
Industry Position: 76.3% below the Consumer Packaged Goods median (#1214 of 1515)
No single metric tells the full story. See the BOM:539889 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Parag Milk Food Ltd is an India based company engaged in manufacturing, trading, and processing of milk and milk products. The products offered by the company are milk, cheese, butter, ghee, fresh cream, milk powder, flavoured milk, lassi, whey protein powder, curd, and other related products. The company markets its products under the brands Gowardhan, Go, Topp up and PRIDE OF COWS. It sells its products in India, and also exports internationally, of which majority of the sales revenue is generated within India.
79GF Score
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