Shankara Building Products (BOM:540425) Interest Coverage: 2.87 (As of Mar. 2026) — 10% Above Median

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BOM:540425 Shankara Building Products Ltd BOM:540425
52 GF Score
Price ₹136.85
GF Value ₹50.23
Valuation Significantly Overvalued
! 6 Warning Signs
View Full Analysis

What is Shankara Building Products Interest Coverage?

Shankara Building Products BOM:540425 +4.55% 52 Interest Coverage is 2.87 as of Mar. 2026, which is 10% above its 10-year median of 2.61. GuruFocus rates BOM:540425 with a GF Score™ of 52/100 and a GF Value™ of ₹50.23 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 825 Retail - Cyclical companies, Shankara Building Products ranks worse than 74.79% 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. Shankara Building Products's Operating Income for the three months ended in Mar. 2026 was ₹112 Mil. Shankara Building Products's Interest Expense for the three months ended in Mar. 2026 was ₹-39 Mil. Shankara Building Products's interest coverage for the quarter that ended in Mar. 2026 was 2.87. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Shankara Building Products's Interest Coverage or its related term are showing as below:

BOM:540425' s Interest Coverage Range Over the Past 10 Years
Min: 1.14   Med: 2.61   Max: 4.89
Current: 2.89


BOM:540425's Interest Coverage is ranked worse than
74.79% of 825 companies
in the Retail - Cyclical industry
Industry Median: 7.47 vs BOM:540425: 2.89

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Shankara Building Products  (BOM:540425) 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 .


Shankara Building Products Interest Coverage Related Terms


Shankara Building Products Interest Coverage Historical Data

* Premium members only.

The historical data trend for Shankara Building Products'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.

Shankara Building Products Interest Coverage Chart

Shankara Building Products Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.03 4.89 4.80 1.14 1.34

Shankara Building Products Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.80 4.52 0.00 0.83 2.87

BOM:540425 vs HD, LOW, FND: Interest Coverage Comparison

For the Home Improvement Retail subindustry, Shankara Building Products'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.


Shankara Building Products Interest Coverage vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Shankara Building Products's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Shankara Building Products's Interest Coverage falls into.


BOM:540425
52GF Score
Shankara Building Products Ltd BOM:540425
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Shankara Building Products 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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Shankara Building Products's Interest Coverage for the fiscal year that ended in Mar. 2026 is calculated as

Here, for the fiscal year that ended in Mar. 2026, Shankara Building Products's Interest Expense was ₹-136 Mil. Its Operating Income was ₹182 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹24 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2026 )/Interest Expense (A: Mar. 2026 )
=-1*182.4/-136.1
=1.34

Shankara Building Products's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Shankara Building Products's Interest Expense was ₹-39 Mil. Its Operating Income was ₹112 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹24 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*111.5/-38.9
=2.87

* 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.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 2.87 mean?
Shankara Building Products (BOM:540425) has a Interest Coverage of 2.87 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Shankara Building Products and its competitors. This is 10% above median its historical median of 2.61. Over the past decade, Shankara Building Products' Interest Coverage has ranged from 1.14 to 4.89. According to the industry distribution chart, Shankara Building Products ranks #617 out of 825 companies in the Retail - Cyclical industry, placing it in the top 74.8%.
Is Shankara Building Products' Interest Coverage too high?
Shankara Building Products' current Interest Coverage of 2.87 is 10% above median its 10-year median of 2.61. Over the past 10 years, this metric has ranged from a low of 1.14 to a high of 4.89. The Retail - Cyclical industry median Interest Coverage is 7.47. Shankara Building Products' value of 2.87 is 61.6% below this industry median. Based on the distribution chart, Shankara Building Products ranks #617 out of 825 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Shankara Building Products has a GF Score™ of 52/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shankara Building Products' Interest Coverage compare to HD and LOW?
According to the Retail - Cyclical industry distribution chart, Shankara Building Products ranks #617 out of 825 companies for Interest Coverage. This places Shankara Building Products in the lower half of its industry. The industry median Interest Coverage is 7.47. Shankara Building Products' value of 2.87 is 61.6% below this benchmark. Historically, Shankara Building Products' own Interest Coverage has ranged from 1.14 to 4.89 over the past decade. While the company's 10-year median is 2.61 vs. the industry median of 7.47, Shankara Building Products 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 Retail - Cyclical company?
The median Interest Coverage among Retail - Cyclical companies is 7.47, based on 825 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. Shankara Building Products's current Interest Coverage of 2.87 is 61.6% 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 Shankara Building Products and its competitors. For the Retail - Cyclical industry, the median Interest Coverage is 7.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shankara Building Products's current Interest Coverage is 2.87, which is 10% above median its own 10-year median of 2.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shankara Building Products stock overvalued right now?
Based on GuruFocus' analysis, Shankara Building Products (BOM:540425) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹50.23, compared to a current price of ₹136.85 — trading 172.4% above its estimated fair value. The current Interest Coverage is 2.87, which is 10% above median its 10-year median of 2.61 and 61.6% below the Retail - Cyclical industry median of 7.47. Shankara Building Products' overall GF Score™ is 52/100 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 Shankara Building Products (BOM:540425), the current Interest Coverage is 2.87 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 Shankara Building Products (BOM:540425) Overvalued in 2026?

Based on GuruFocus' analysis, Shankara Building Products stock appears to be overvalued. The current stock price of ₹136.85 is trading 172.4% above its estimated GF Value™ of ₹50.23. GuruFocus considers Shankara Building Products to be Significantly Overvalued.

Key valuation signals for BOM:540425:

  • Interest Coverage: 2.87 (10% above median its 10-year median of 2.61)
  • GF Value™: ₹50.23 vs. price of ₹136.85 (172.4% above fair value)
  • GF Score™: 52/100 with 6 warning signs
  • Industry Position: 61.6% below the Retail - Cyclical median (#617 of 825)

No single metric tells the full story. See the BOM:540425 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Shankara Building Products Business Description

Other Exchanges SHANKARA:India
Address Hosur Main Road, No.21/1 & 35-A-1, Electronic City Post, Veerasandra, Bengaluru, KA, IND, 560100
Shankara Building Products Ltd is an organised retailer of home improvement and building products in India. The company's operating segments include Retail, Channel and Enterprise. It generates maximum revenue from the Retail segment. The Retail segment offers construction materials, plumbing and sanitaryware, flooring, electrical items, and interior-exterior finishing. Its In-house brands include Taurus; Loha; Prince; Century Roof; Ganga and Ganga Gold and Prince Scaffolding.
52GF Score

Get the complete analysis for BOM:540425

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹136.85
Price
₹50.23
GF Value