Laurus LabsBOM:540222 -3.43%71 Interest Coverage is 9.64 as of Mar. 2026, which is 106% above its 10-year median of 4.69. GuruFocus rates BOM:540222 with a GF Score™ of 71/100 and a GF Value™ of ₹702.44 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 685 Drug Manufacturers companies, Laurus Labs ranks worse than 60.15% 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. Laurus Labs's
Operating Income
for the
three
months ended in Mar. 2026 was ₹3,900 Mil. Laurus Labs's Interest Expense for the
three
months ended in Mar. 2026 was ₹-404 Mil.
Laurus Labs's interest coverage for the quarter that ended in Mar. 2026 was 9.64.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Laurus Labs's Interest Coverage or its related term are showing as below:
BOM:540222'
s Interest Coverage Range Over the Past 10 Years
Min: 2.3 Med: 4.69 Max: 24.36
Current: 7.6
BOM:540222's Interest Coverage is ranked worse than 60.15% of 685
companies
in the Drug Manufacturers industry
Industry Median: 12.75
vs BOM:540222: 7.60
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 .
Laurus Labs Interest Coverage Related Terms
Laurus Labs Interest Coverage Historical Data
* Premium members only.
The historical data trend for Laurus Labs'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:540222 vs ZTS, UTHR: Interest Coverage Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Laurus Labs'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.
Laurus Labs Interest Coverage vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Laurus Labs's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Laurus Labs'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.
Laurus Labs (BOM:540222) has a Interest Coverage of 9.64 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Laurus Labs and its competitors. This is 106% above median its historical median of 4.69. Over the past decade, Laurus Labs' Interest Coverage has ranged from 2.30 to 24.36. According to the industry distribution chart, Laurus Labs ranks #412 out of 685 companies in the Drug Manufacturers industry, placing it in the top 60.1%.
Is Laurus Labs' Interest Coverage too high?
Laurus Labs' current Interest Coverage of 9.64 is 106% above median its 10-year median of 4.69. Over the past 10 years, this metric has ranged from a low of 2.30 to a high of 24.36. The Drug Manufacturers industry median Interest Coverage is 12.75. Laurus Labs' value of 9.64 is 24.4% below this industry median. Based on the distribution chart, Laurus Labs ranks #412 out of 685 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Laurus Labs has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Laurus Labs' Interest Coverage compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Laurus Labs ranks #412 out of 685 companies for Interest Coverage. This places Laurus Labs in the lower half of its industry. The industry median Interest Coverage is 12.75. Laurus Labs' value of 9.64 is 24.4% below this benchmark. Historically, Laurus Labs' own Interest Coverage has ranged from 2.30 to 24.36 over the past decade. While the company's 10-year median is 4.69 vs. the industry median of 12.75, Laurus Labs 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 Drug Manufacturers company?
The median Interest Coverage among Drug Manufacturers companies is 12.75, based on 685 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. Laurus Labs's current Interest Coverage of 9.64 is 24.4% 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 Laurus Labs and its competitors. For the Drug Manufacturers industry, the median Interest Coverage is 12.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Laurus Labs's current Interest Coverage is 9.64, which is 106% above median its own 10-year median of 4.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Laurus Labs stock overvalued right now?
Based on GuruFocus' analysis, Laurus Labs (BOM:540222) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹702.44, compared to a current price of ₹1,476.80 — trading 110.2% above its estimated fair value. The current Interest Coverage is 9.64, which is 106% above median its 10-year median of 4.69 and 24.4% below the Drug Manufacturers industry median of 12.75. Laurus Labs' overall GF Score™ is 71/100 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 Laurus Labs (BOM:540222), the current Interest Coverage is 9.64 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 Laurus Labs (BOM:540222) Overvalued in 2026?
Based on GuruFocus' analysis, Laurus Labs stock appears to be overvalued.
The current stock price of ₹1,476.80 is trading 110.2% above its estimated GF Value™ of ₹702.44.
GuruFocus considers Laurus Labs to be Significantly Overvalued.
Key valuation signals for BOM:540222:
Interest Coverage: 9.64 (106% above median its 10-year median of 4.69)
GF Value™: ₹702.44 vs. price of ₹1,476.80 (110.2% above fair value)
Industry Position: 24.4% below the Drug Manufacturers median (#412 of 685)
No single metric tells the full story. See the BOM:540222 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Laurus Labs Ltd is a pharmaceutical company based in India. It provides active pharmaceutical ingredients (API) including intermediates, Generic Finished dosage forms (FDF), and Contract Research services. The entity develops APIs and intermediates for select, high-growth antiretrovirals, Hepatitis C and Oncology. It also manufactures APIs in other therapeutic areas, such as anti-asthma, ophthalmology, anti-diabetics, cardiovascular, and proton pump inhibitors, among others. The company has its business presence in India and Outside India of which it derives a majority of revenue from Outside India. The company generates revenue from the sale of API, Intermediates and Formulations, Contract research services, and others.
71GF Score
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