Riddhi Steel and TubeBOM:540082 56 Interest Coverage is 1.67 as of Mar. 2026, which is 26% above its 10-year median of 1.33. GuruFocus rates BOM:540082 with a GF Score™ of 56/100 and a GF Value™ of ₹85.34 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 457 Steel companies, Riddhi Steel and Tube ranks worse than 73.3% 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. Riddhi Steel and Tube's
Operating Income
for the
six
months ended in Mar. 2026 was ₹119 Mil. Riddhi Steel and Tube's Interest Expense for the
six
months ended in Mar. 2026 was ₹-71 Mil.
Riddhi Steel and Tube's interest coverage for the quarter that ended in Mar. 2026 was 1.67.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Riddhi Steel and Tube's Interest Coverage or its related term are showing as below:
BOM:540082'
s Interest Coverage Range Over the Past 10 Years
Min: 1.04 Med: 1.33 Max: 2.15
Current: 2.15
BOM:540082's Interest Coverage is ranked worse than 73.3% of 457
companies
in the Steel industry
Industry Median: 4.41
vs BOM:540082: 2.15
Riddhi Steel and Tube (BOM:540082) 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 .
Riddhi Steel and Tube Interest Coverage Related Terms
Riddhi Steel and Tube Interest Coverage Historical Data
* Premium members only.
The historical data trend for Riddhi Steel and Tube'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:540082 vs NUE, STLD, RS: Interest Coverage Comparison
For the Steel subindustry, Riddhi Steel and Tube'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.
Riddhi Steel and Tube Interest Coverage vs Steel Industry
For the Steel industry and Basic Materials sector, Riddhi Steel and Tube's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Riddhi Steel and Tube's Interest Coverage falls into.
Riddhi Steel and Tube 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.
Riddhi Steel and Tube (BOM:540082) has a Interest Coverage of 1.67 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Riddhi Steel and Tube and its competitors. This is 26% above median its historical median of 1.33. Over the past decade, Riddhi Steel and Tube's Interest Coverage has ranged from 1.04 to 2.15. According to the industry distribution chart, Riddhi Steel and Tube ranks #335 out of 457 companies in the Steel industry, placing it in the top 73.3%.
Is Riddhi Steel and Tube's Interest Coverage too high?
Riddhi Steel and Tube's current Interest Coverage of 1.67 is 26% above median its 10-year median of 1.33. Over the past 10 years, this metric has ranged from a low of 1.04 to a high of 2.15. The Steel industry median Interest Coverage is 4.41. Riddhi Steel and Tube's value of 1.67 is 62.1% below this industry median. Based on the distribution chart, Riddhi Steel and Tube ranks #335 out of 457 companies in the Steel industry, which is below the industry midpoint. Overall, Riddhi Steel and Tube has a GF Score™ of 56/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Riddhi Steel and Tube's Interest Coverage compare to NUE and STLD?
According to the Steel industry distribution chart, Riddhi Steel and Tube ranks #335 out of 457 companies for Interest Coverage. This places Riddhi Steel and Tube in the lower half of its industry. The industry median Interest Coverage is 4.41. Riddhi Steel and Tube's value of 1.67 is 62.1% below this benchmark. Historically, Riddhi Steel and Tube's own Interest Coverage has ranged from 1.04 to 2.15 over the past decade. While the company's 10-year median is 1.33 vs. the industry median of 4.41, Riddhi Steel and Tube 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 4.41, 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. Riddhi Steel and Tube's current Interest Coverage of 1.67 is 62.1% 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 Riddhi Steel and Tube and its competitors. For the Steel industry, the median Interest Coverage is 4.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Riddhi Steel and Tube's current Interest Coverage is 1.67, which is 26% above median its own 10-year median of 1.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Riddhi Steel and Tube stock overvalued right now?
Based on GuruFocus' analysis, Riddhi Steel and Tube (BOM:540082) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹85.34, compared to a current price of ₹196.40 — trading 130.1% above its estimated fair value. The current Interest Coverage is 1.67, which is 26% above median its 10-year median of 1.33 and 62.1% below the Steel industry median of 4.41. Riddhi Steel and Tube's overall GF Score™ is 56/100 with 1 warning sign 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 Riddhi Steel and Tube (BOM:540082), the current Interest Coverage is 1.67 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 Riddhi Steel and Tube (BOM:540082) Overvalued in 2026?
Based on GuruFocus' analysis, Riddhi Steel and Tube stock appears to be overvalued.
The current stock price of ₹196.40 is trading 130.1% above its estimated GF Value™ of ₹85.34.
GuruFocus considers Riddhi Steel and Tube to be Significantly Overvalued.
Key valuation signals for BOM:540082:
Interest Coverage: 1.67 (26% above median its 10-year median of 1.33)
GF Value™: ₹85.34 vs. price of ₹196.40 (130.1% above fair value)
Industry Position: 62.1% below the Steel median (#335 of 457)
No single metric tells the full story. See the BOM:540082 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Riddhi Steel and Tube Ltd is engaged in manufacturing and galvanised steel pipes in various sizes, tubes, and hollow profiles and of tube and pipe fittings of cast iron or cast steel. The product line of the company includes MS Black Pipes, Pre-Galvanised Pipes, and Galvanised Pipes, which are used in agriculture, industry, and construction activities like scaffolding and casing in bore wells; Square and Rectangular Hollow Sections used in engineering applications, Pre-Galvanised Pipes used by various manufacturers. The company generates all of its revenue from Domestic sales.
56GF Score
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