Meghna Petroleum (DHA:MPETROLEUM) Interest Coverage: 2.68 (As of Mar. 2026) — 43% Below Median


DHA:MPETROLEUM Meghna Petroleum PLC DHA:MPETROLEUM
84 GF Score
Price BDT214.10
GF Value BDT173.68
Valuation Modestly Overvalued
! 7 Warning Signs
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What is Meghna Petroleum Interest Coverage?

Meghna Petroleum DHA:MPETROLEUM +1.47% 84 Interest Coverage is 2.68 as of Mar. 2026, which is 43% below its 10-year median of 4.68. GuruFocus rates DHA:MPETROLEUM with a GF Score™ of 84/100 and a GF Value™ of BDT173.68 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 731 Oil & Gas companies, Meghna Petroleum ranks worse than 51.85% 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. Meghna Petroleum's Operating Income for the three months ended in Mar. 2026 was BDT89 Mil. Meghna Petroleum's Interest Expense for the three months ended in Mar. 2026 was BDT-33 Mil. Meghna Petroleum's interest coverage for the quarter that ended in Mar. 2026 was 2.68. The higher the ratio, the stronger the company's financial strength is.

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

DHA:MPETROLEUM' s Interest Coverage Range Over the Past 10 Years
Min: 2.72   Med: 4.68   Max: 7.14
Current: 5.38


DHA:MPETROLEUM's Interest Coverage is ranked worse than
51.85% of 731 companies
in the Oil & Gas industry
Industry Median: 5.89 vs DHA:MPETROLEUM: 5.38

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


Meghna Petroleum  (DHA:MPETROLEUM) 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 .


Meghna Petroleum Interest Coverage Related Terms


Meghna Petroleum Interest Coverage Historical Data

* Premium members only.

The historical data trend for Meghna Petroleum'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.

Meghna Petroleum Interest Coverage Chart

Meghna Petroleum Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.70 4.46 6.67 4.07 4.15

Meghna Petroleum 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 8.80 7.72 1.94 26.63 2.68

DHA:MPETROLEUM vs VLO, MPC, PSX: Interest Coverage Comparison

For the Oil & Gas Refining & Marketing subindustry, Meghna Petroleum'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.


Meghna Petroleum Interest Coverage vs Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Meghna Petroleum's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Meghna Petroleum's Interest Coverage falls into.


DHA:MPETROLEUM
84GF Score
Meghna Petroleum PLC DHA:MPETROLEUM
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
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Meghna Petroleum 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.

Meghna Petroleum's Interest Coverage for the fiscal year that ended in Jun. 2025 is calculated as

Here, for the fiscal year that ended in Jun. 2025, Meghna Petroleum's Interest Expense was BDT-436 Mil. Its Operating Income was BDT1,812 Mil. And its Long-Term Debt & Capital Lease Obligation was BDT104 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2025 )/Interest Expense (A: Jun. 2025 )
=-1*1812.472/-436.29
=4.15

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

Here, for the three months ended in Mar. 2026, Meghna Petroleum's Interest Expense was BDT-33 Mil. Its Operating Income was BDT89 Mil. And its Long-Term Debt & Capital Lease Obligation was BDT92 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*89.135/-33.29
=2.68

* 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 2.68 mean?
Meghna Petroleum (DHA:MPETROLEUM) has a Interest Coverage of 2.68 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Meghna Petroleum and its competitors. This is 43% below median its historical median of 4.68. Over the past decade, Meghna Petroleum's Interest Coverage has ranged from 2.72 to 7.14. According to the industry distribution chart, Meghna Petroleum ranks #379 out of 731 companies in the Oil & Gas industry, placing it in the top 51.8%.
Is Meghna Petroleum's Interest Coverage too high?
Meghna Petroleum's current Interest Coverage of 2.68 is 43% below median its 10-year median of 4.68. Over the past 10 years, this metric has ranged from a low of 2.72 to a high of 7.14. The Oil & Gas industry median Interest Coverage is 5.89. Meghna Petroleum's value of 2.68 is 54.5% below this industry median. Based on the distribution chart, Meghna Petroleum ranks #379 out of 731 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Meghna Petroleum has a GF Score™ of 84/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Meghna Petroleum's Interest Coverage compare to VLO and MPC?
According to the Oil & Gas industry distribution chart, Meghna Petroleum ranks #379 out of 731 companies for Interest Coverage. This places Meghna Petroleum in the lower half of its industry. The industry median Interest Coverage is 5.89. Meghna Petroleum's value of 2.68 is 54.5% below this benchmark. Historically, Meghna Petroleum's own Interest Coverage has ranged from 2.72 to 7.14 over the past decade. While the company's 10-year median is 4.68 vs. the industry median of 5.89, Meghna Petroleum 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 Oil & Gas company?
The median Interest Coverage among Oil & Gas companies is 5.89, based on 731 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. Meghna Petroleum's current Interest Coverage of 2.68 is 54.5% 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 Meghna Petroleum and its competitors. For the Oil & Gas industry, the median Interest Coverage is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Meghna Petroleum's current Interest Coverage is 2.68, which is 43% below median its own 10-year median of 4.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Meghna Petroleum stock overvalued right now?
Based on GuruFocus' analysis, Meghna Petroleum (DHA:MPETROLEUM) is currently considered Modestly Overvalued. The stock's GF Value™ is BDT173.68, compared to a current price of BDT214.10 — trading 23.3% above its estimated fair value. The current Interest Coverage is 2.68, which is 43% below median its 10-year median of 4.68 and 54.5% below the Oil & Gas industry median of 5.89. Meghna Petroleum's overall GF Score™ is 84/100 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 Meghna Petroleum (DHA:MPETROLEUM), the current Interest Coverage is 2.68 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 Meghna Petroleum (DHA:MPETROLEUM) Overvalued in 2026?

Based on GuruFocus' analysis, Meghna Petroleum stock appears to be overvalued. The current stock price of BDT214.10 is trading 23.3% above its estimated GF Value™ of BDT173.68. GuruFocus considers Meghna Petroleum to be Modestly Overvalued.

Key valuation signals for DHA:MPETROLEUM:

  • Interest Coverage: 2.68 (43% below median its 10-year median of 4.68)
  • GF Value™: BDT173.68 vs. price of BDT214.10 (23.3% above fair value)
  • GF Score™: 84/100 with 7 warning signs
  • Industry Position: 54.5% below the Oil & Gas median (#379 of 731)

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


Meghna Petroleum Business Description

Industry EnergyOil & Gas
Address 58-59 Agrabad Commercial Area, Chattogram, BGD, 4100
Meghna Petroleum Ltd is engaged in the business of petroleum oil and related products. The company is involved in the procurement, storage, and marketing of petroleum products, lubricants, oil and grease, bitumen, liquefied petroleum gas, and battery water in Bangladesh. The business has two reportable segments. The Petroleum Products segment includes the company's earnings from the marketing of petroleum products, bitumen, and LPG. The Lubricating Oil & Grease Operations segment includes the company's income from the trading of lubricating oil and grease of BP and Castrol brands. The majority of revenue comes from the Petroleum Products segment.
84GF Score

Get the complete analysis for DHA:MPETROLEUM

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

BDT214.10
Price
BDT173.68
GF Value