Fairchem OrganicsBOM:543252 -0.39%71 Interest Coverage is 4.74 as of Mar. 2026, which is 47% below its 10-year median of 8.92. GuruFocus rates BOM:543252 with a GF Score™ of 71/100 and a GF Value™ of ₹821.93 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 1,231 Chemicals companies, Fairchem Organics ranks worse than 79.04% 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. Fairchem Organics's
Operating Income
for the
three
months ended in Mar. 2026 was ₹53 Mil. Fairchem Organics's Interest Expense for the
three
months ended in Mar. 2026 was ₹-11 Mil.
Fairchem Organics's interest coverage for the quarter that ended in Mar. 2026 was 4.74.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Fairchem Organics's Interest Coverage or its related term are showing as below:
BOM:543252'
s Interest Coverage Range Over the Past 10 Years
Min: 2.87 Med: 8.92 Max: 14.27
Current: 2.87
BOM:543252's Interest Coverage is ranked worse than 79.04% of 1231
companies
in the Chemicals industry
Industry Median: 10.15
vs BOM:543252: 2.87
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 .
Fairchem Organics Interest Coverage Related Terms
Fairchem Organics Interest Coverage Historical Data
* Premium members only.
The historical data trend for Fairchem Organics'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:543252 vs LIN, SHW, ECL: Interest Coverage Comparison
For the Specialty Chemicals subindustry, Fairchem Organics'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.
Fairchem Organics Interest Coverage vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Fairchem Organics's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Fairchem Organics'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.
Fairchem Organics (BOM:543252) has a Interest Coverage of 4.74 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Fairchem Organics and its competitors. This is 47% below median its historical median of 8.92. Over the past decade, Fairchem Organics' Interest Coverage has ranged from 2.87 to 14.27. According to the industry distribution chart, Fairchem Organics ranks #973 out of 1231 companies in the Chemicals industry, placing it in the top 79%.
Is Fairchem Organics' Interest Coverage too high?
Fairchem Organics' current Interest Coverage of 4.74 is 47% below median its 10-year median of 8.92. Over the past 10 years, this metric has ranged from a low of 2.87 to a high of 14.27. The Chemicals industry median Interest Coverage is 10.15. Fairchem Organics' value of 4.74 is 53.3% below this industry median. Based on the distribution chart, Fairchem Organics ranks #973 out of 1231 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Fairchem Organics has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Fairchem Organics' Interest Coverage compare to LIN and SHW?
According to the Chemicals industry distribution chart, Fairchem Organics ranks #973 out of 1231 companies for Interest Coverage. This places Fairchem Organics in the lower half of its industry. The industry median Interest Coverage is 10.15. Fairchem Organics' value of 4.74 is 53.3% below this benchmark. Historically, Fairchem Organics' own Interest Coverage has ranged from 2.87 to 14.27 over the past decade. While the company's 10-year median is 8.92 vs. the industry median of 10.15, Fairchem Organics 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 Chemicals company?
The median Interest Coverage among Chemicals companies is 10.15, based on 1,231 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. Fairchem Organics's current Interest Coverage of 4.74 is 53.3% 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 Fairchem Organics and its competitors. For the Chemicals industry, the median Interest Coverage is 10.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fairchem Organics's current Interest Coverage is 4.74, which is 47% below median its own 10-year median of 8.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fairchem Organics stock overvalued right now?
Based on GuruFocus' analysis, Fairchem Organics (BOM:543252) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹821.93, compared to a current price of ₹704.25 — trading 14.3% below its estimated fair value. The current Interest Coverage is 4.74, which is 47% below median its 10-year median of 8.92 and 53.3% below the Chemicals industry median of 10.15. Fairchem Organics' overall GF Score™ is 71/100 with 7 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 Fairchem Organics (BOM:543252), the current Interest Coverage is 4.74 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 Fairchem Organics (BOM:543252) Overvalued in 2026?
Based on GuruFocus' analysis, Fairchem Organics stock appears to be undervalued.
The current stock price of ₹704.25 is trading 14.3% below its estimated GF Value™ of ₹821.93.
GuruFocus considers Fairchem Organics to be Modestly Undervalued.
Key valuation signals for BOM:543252:
Interest Coverage: 4.74 (47% below median its 10-year median of 8.92)
GF Value™: ₹821.93 vs. price of ₹704.25 (14.3% below fair value)
Industry Position: 53.3% below the Chemicals median (#973 of 1231)
No single metric tells the full story. See the BOM:543252 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fairchem Organics Ltd is engaged in the business of manufacturing specialty chemicals, namely, Oleo Chemicals and Intermediate Nutraceuticals. The company operates in a business-to-business model, offering various chemical products such as dimer acid, linoleic acid, isostearic acid, stearic acid, palmitic acid, and others. In addition, it offers mixed tocopherol and sterol concentrates that are used mainly for the manufacturing of natural vitamin E. Geographically, the company derives all of its revenue from its business in India.
71GF Score
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