True Colors (BOM:544531) Interest Coverage: 7.26 (As of Mar. 2026) — 15% Below Median

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Director of Data and Quant Analytics at GuruFocus
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BOM:544531 True Colors Ltd BOM:544531
21 GF Score
Price ₹152.00
! 4 Warning Signs
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What is True Colors Interest Coverage?

True Colors BOM:544531 +0.63% 21 Interest Coverage is 7.26 as of Mar. 2026, which is 15% below its 10-year median of 8.58. GuruFocus rates BOM:544531 with a GF Score™ of 21/100. The stock has 4 warning signs investors should review. Among 140 Industrial Distribution companies, True Colors ranks better than 52.14% 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. True Colors's Operating Income for the six months ended in Mar. 2026 was ₹213 Mil. True Colors's Interest Expense for the six months ended in Mar. 2026 was ₹0 Mil. True Colors's interest coverage for the quarter that ended in Mar. 2026 was 7.26. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for True Colors's Interest Coverage or its related term are showing as below:

BOM:544531' s Interest Coverage Range Over the Past 10 Years
Min: 7   Med: 8.58   Max: 50.74
Current: 7.78


BOM:544531's Interest Coverage is ranked better than
52.14% of 140 companies
in the Industrial Distribution industry
Industry Median: 7.395 vs BOM:544531: 7.78

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


True Colors  (BOM:544531) 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 .


True Colors Interest Coverage Related Terms


True Colors Interest Coverage Historical Data

* Premium members only.

The historical data trend for True Colors'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.

True Colors Interest Coverage Chart

True Colors Annual Data
Trend Mar22 Mar23 Mar24 Mar25 Mar26
Interest Coverage
309.05 19.24 6.28 7.36 7.07

True Colors Semi-Annual Data
Sep25 Mar26
Interest Coverage 8.39 7.26

BOM:544531 vs CTAS, CPRT, GPN: Interest Coverage Comparison

For the Industrial Distribution subindustry, True Colors'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.


True Colors Interest Coverage vs Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, True Colors's Interest Coverage distribution charts can be found below:

* The bar in red indicates where True Colors's Interest Coverage falls into.


BOM:544531
21GF Score
True Colors Ltd BOM:544531
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
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True Colors 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.

True Colors'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, True Colors's Interest Expense was ₹0 Mil. Its Operating Income was ₹430 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹81 Mil.

GuruFocus does not calculate True Colors's interest coverage with the available data.

True Colors's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the six months ended in Mar. 2026, True Colors's Interest Expense was ₹0 Mil. Its Operating Income was ₹213 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹81 Mil.

GuruFocus does not calculate True Colors's interest coverage with the available 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.

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 7.26 mean?
True Colors (BOM:544531) has a Interest Coverage of 7.26 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on True Colors and its competitors. This is 15% below median its historical median of 8.58. Over the past decade, True Colors' Interest Coverage has ranged from 7.00 to 50.74. According to the industry distribution chart, True Colors ranks #67 out of 140 companies in the Industrial Distribution industry, placing it in the top 47.9%.
Is True Colors' Interest Coverage too high?
True Colors' current Interest Coverage of 7.26 is 15% below median its 10-year median of 8.58. Over the past 10 years, this metric has ranged from a low of 7.00 to a high of 50.74. The Industrial Distribution industry median Interest Coverage is 7.40. True Colors' value of 7.26 is 1.8% below this industry median. Based on the distribution chart, True Colors ranks #67 out of 140 companies in the Industrial Distribution industry, which is above the industry midpoint. Overall, True Colors has a GF Score™ of 21/100, reflecting its overall financial health beyond just this single metric.
How does True Colors' Interest Coverage compare to CTAS and CPRT?
According to the Industrial Distribution industry distribution chart, True Colors ranks #67 out of 140 companies for Interest Coverage. This puts True Colors in the upper half of its industry. The industry median Interest Coverage is 7.40. True Colors' value of 7.26 is 1.8% below this benchmark. Historically, True Colors' own Interest Coverage has ranged from 7.00 to 50.74 over the past decade. While the company's 10-year median is 8.58 vs. the industry median of 7.40, True Colors 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 an Industrial Distribution company?
The median Interest Coverage among Industrial Distribution companies is 7.40, based on 140 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. True Colors's current Interest Coverage of 7.26 is 1.8% 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 True Colors and its competitors. For the Industrial Distribution industry, the median Interest Coverage is 7.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. True Colors's current Interest Coverage is 7.26, which is 15% below median its own 10-year median of 8.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is True Colors stock overvalued right now?
True Colors (BOM:544531) has a current Interest Coverage of 7.26. The current Interest Coverage is 7.26, which is 15% below median its 10-year median of 8.58 and 1.8% below the Industrial Distribution industry median of 7.40. True Colors' overall GF Score™ is 21/100 with 4 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 True Colors (BOM:544531), the current Interest Coverage is 7.26 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.

True Colors Business Description

Address Somakanjini Wadi Patel Line Khatodara, P-8, Ground Floor to 3rd Floor, Surat, GJ, IND, 395002
True Colors Ltd is engaged in the business of importing and distributing of digital textile printers and manufacturing and supplying of products related to the digital textile printing industry. It imports and distributes high-quality wide-format digital textile inkjet printers and also provides digital textile printing inks such as Sublimation Inks, Reactive Inks, and Disperse Inks. The company has established an in-house sublimation paper manufacturing unit, a critical component in the digital textile printing process. It generates revenue from the trading of Ink and digital printing machines.
21GF Score

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