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. Garden Reach Shipbuilders & Engineers's
Operating Income
for the
three
months ended in Dec. 2025 was ₹1,596 Mil. Garden Reach Shipbuilders & Engineers's Interest Expense for the
three
months ended in Dec. 2025 was ₹-38 Mil.
Garden Reach Shipbuilders & Engineers's interest coverage for the quarter that ended in Dec. 2025 was 42.09.
The higher the ratio, the stronger the company's financial strength is.
BOM:542011'
s Interest Coverage Range Over the Past 10 Years
Min: 6.05 Med: 19.54 Max: 89.96
Current: 43.96
BOM:542011's Interest Coverage is ranked better than 80.91% of 241
companies
in the Aerospace & Defense industry
Industry Median: 8.69
vs BOM:542011: 43.96
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 .
Garden Reach Shipbuilders & Engineers Interest Coverage Related Terms
Garden Reach Shipbuilders & Engineers 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.
BOM:542011 vs SPCX, GE, RTX: Interest Coverage Comparison
For the Aerospace & Defense subindustry, Garden Reach Shipbuilders & Engineers'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.
Garden Reach Shipbuilders & Engineers Interest Coverage vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Garden Reach Shipbuilders & Engineers's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Garden Reach Shipbuilders & Engineers'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.
Garden Reach Shipbuilders & Engineers (BOM:542011) has a Interest Coverage of 42.09 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Garden Reach Shipbuilders & Engineers and its competitors. This is 115% above median its historical median of 19.54. Over the past decade, Garden Reach Shipbuilders & Engineers' Interest Coverage has ranged from 6.05 to 89.96. According to the industry distribution chart, Garden Reach Shipbuilders & Engineers ranks #46 out of 241 companies in the Aerospace & Defense industry, placing it in the top 19.1%.
Is Garden Reach Shipbuilders & Engineers' Interest Coverage too high?
Garden Reach Shipbuilders & Engineers' current Interest Coverage of 42.09 is 115% above median its 10-year median of 19.54. Over the past 10 years, this metric has ranged from a low of 6.05 to a high of 89.96. The Aerospace & Defense industry median Interest Coverage is 8.69. Garden Reach Shipbuilders & Engineers' value of 42.09 is 384.3% above this industry median. Based on the distribution chart, Garden Reach Shipbuilders & Engineers ranks #46 out of 241 companies in the Aerospace & Defense industry, which is in the top quartile — a strong position relative to peers. Overall, Garden Reach Shipbuilders & Engineers has a GF Score™ of 91/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Garden Reach Shipbuilders & Engineers' Interest Coverage compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Garden Reach Shipbuilders & Engineers ranks #46 out of 241 companies for Interest Coverage. This places Garden Reach Shipbuilders & Engineers in the top 19% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 8.69. Garden Reach Shipbuilders & Engineers' value of 42.09 is 384.3% above this benchmark. Historically, Garden Reach Shipbuilders & Engineers' own Interest Coverage has ranged from 6.05 to 89.96 over the past decade. While the company's 10-year median is 19.54 vs. the industry median of 8.69, Garden Reach Shipbuilders & Engineers has consistently been above 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 an Aerospace & Defense company?
The median Interest Coverage among Aerospace & Defense companies is 8.69, based on 241 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. Garden Reach Shipbuilders & Engineers's current Interest Coverage of 42.09 is 384.3% above 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 Garden Reach Shipbuilders & Engineers and its competitors. For the Aerospace & Defense industry, the median Interest Coverage is 8.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Garden Reach Shipbuilders & Engineers's current Interest Coverage is 42.09, which is 115% above median its own 10-year median of 19.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Garden Reach Shipbuilders & Engineers stock overvalued right now?
Based on GuruFocus' analysis, Garden Reach Shipbuilders & Engineers (BOM:542011) is currently considered Fairly Valued. The stock's GF Value™ is ₹2,692.81, compared to a current price of ₹2,726.30 — trading 1.2% above its estimated fair value. The current Interest Coverage is 42.09, which is 115% above median its 10-year median of 19.54 and 384.3% above the Aerospace & Defense industry median of 8.69. Garden Reach Shipbuilders & Engineers' overall GF Score™ is 91/100 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 Garden Reach Shipbuilders & Engineers (BOM:542011), the current Interest Coverage is 42.09 as of Dec. 2025. 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 Garden Reach Shipbuilders & Engineers (BOM:542011) Overvalued in 2026?
Based on GuruFocus' analysis, Garden Reach Shipbuilders & Engineers stock appears to be overvalued.
The current stock price of ₹2,726.30 is trading 1.2% above its estimated GF Value™ of ₹2,692.81.
GuruFocus considers Garden Reach Shipbuilders & Engineers to be Fairly Valued.
Key valuation signals for BOM:542011:
Interest Coverage: 42.09 (115% above median its 10-year median of 19.54)
GF Value™: ₹2,692.81 vs. price of ₹2,726.30 (1.2% above fair value)
Industry Position: 384.3% above the Aerospace & Defense median (#46 of 241)
No single metric tells the full story. See the BOM:542011 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Garden Reach Shipbuilders & Engineers Business Description
Garden Reach Shipbuilders & Engineers Ltd is an Indian shipbuilding company mainly engaged in the construction of warships. The company's product portfolio ranges from complex naval warships to weapon systems, encompassing commercial vessels, deck machinery, marine diesel engines, naval surface guns, and Bailey-type portable steel bridges. Additionally, it offers ship repair and maintenance services.
91GF Score
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