Renata (DHA:RENATA) Interest Coverage: 4.01 (As of Mar. 2026) — 82% Below Median


DHA:RENATA Renata PLC DHA:RENATA
85 GF Score
Price BDT456.00
GF Value BDT808.89
Valuation Significantly Undervalued
! 7 Warning Signs
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What is Renata Interest Coverage?

Renata DHA:RENATA +1.04% 85 Interest Coverage is 4.01 as of Mar. 2026, which is 82% below its 10-year median of 22.45. GuruFocus rates DHA:RENATA with a GF Score™ of 85/100 and a GF Value™ of BDT808.89 (Significantly Undervalued). The stock has 7 warning signs investors should review. Among 686 Drug Manufacturers companies, Renata ranks worse than 78.86% 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. Renata's Operating Income for the three months ended in Mar. 2026 was BDT1,299 Mil. Renata's Interest Expense for the three months ended in Mar. 2026 was BDT-324 Mil. Renata's interest coverage for the quarter that ended in Mar. 2026 was 4.01. The higher the ratio, the stronger the company's financial strength is.

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

DHA:RENATA' s Interest Coverage Range Over the Past 10 Years
Min: 2.33   Med: 22.45   Max: 62.59
Current: 2.99


DHA:RENATA's Interest Coverage is ranked worse than
78.86% of 686 companies
in the Drug Manufacturers industry
Industry Median: 12.725 vs DHA:RENATA: 2.99

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


Renata  (DHA:RENATA) 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 .


Renata Interest Coverage Related Terms


Renata Interest Coverage Historical Data

* Premium members only.

The historical data trend for Renata'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.

Renata Interest Coverage Chart

Renata Annual Data
Trend Dec15 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 62.59 14.31 3.73 6.72 2.33

Renata 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 2.57 1.36 3.15 4.40 4.01

DHA:RENATA vs ZTS, UTHR, VTRS: Interest Coverage Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Renata'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.


Renata Interest Coverage vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Renata's Interest Coverage distribution charts can be found below:

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


DHA:RENATA
85GF Score
Renata PLC DHA:RENATA
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Renata 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.

Renata'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, Renata's Interest Expense was BDT-1,752 Mil. Its Operating Income was BDT4,088 Mil. And its Long-Term Debt & Capital Lease Obligation was BDT8,118 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2025 )/Interest Expense (A: Jun. 2025 )
=-1*4088.056/-1752.233
=2.33

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

Here, for the three months ended in Mar. 2026, Renata's Interest Expense was BDT-324 Mil. Its Operating Income was BDT1,299 Mil. And its Long-Term Debt & Capital Lease Obligation was BDT10,003 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*1299.468/-324.34
=4.01

* 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 4.01 mean?
Renata (DHA:RENATA) has a Interest Coverage of 4.01 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Renata and its competitors. This is 82% below median its historical median of 22.45. Over the past decade, Renata's Interest Coverage has ranged from 2.33 to 62.59. According to the industry distribution chart, Renata ranks #541 out of 686 companies in the Drug Manufacturers industry, placing it in the top 78.9%.
Is Renata's Interest Coverage too high?
Renata's current Interest Coverage of 4.01 is 82% below median its 10-year median of 22.45. Over the past 10 years, this metric has ranged from a low of 2.33 to a high of 62.59. The Drug Manufacturers industry median Interest Coverage is 12.73. Renata's value of 4.01 is 68.5% below this industry median. Based on the distribution chart, Renata ranks #541 out of 686 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers. Overall, Renata has a GF Score™ of 85/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Renata's Interest Coverage compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Renata ranks #541 out of 686 companies for Interest Coverage. This places Renata in the lower half of its industry. The industry median Interest Coverage is 12.73. Renata's value of 4.01 is 68.5% below this benchmark. Historically, Renata's own Interest Coverage has ranged from 2.33 to 62.59 over the past decade. While the company's 10-year median is 22.45 vs. the industry median of 12.73, Renata 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 Drug Manufacturers company?
The median Interest Coverage among Drug Manufacturers companies is 12.73, based on 686 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. Renata's current Interest Coverage of 4.01 is 68.5% 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 Renata and its competitors. For the Drug Manufacturers industry, the median Interest Coverage is 12.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Renata's current Interest Coverage is 4.01, which is 82% below median its own 10-year median of 22.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Renata stock overvalued right now?
Based on GuruFocus' analysis, Renata (DHA:RENATA) is currently considered Significantly Undervalued. The stock's GF Value™ is BDT808.89, compared to a current price of BDT456.00 — trading 43.6% below its estimated fair value. The current Interest Coverage is 4.01, which is 82% below median its 10-year median of 22.45 and 68.5% below the Drug Manufacturers industry median of 12.73. Renata's overall GF Score™ is 85/100 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 Renata (DHA:RENATA), the current Interest Coverage is 4.01 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 Renata (DHA:RENATA) Overvalued in 2026?

Based on GuruFocus' analysis, Renata stock appears to be undervalued. The current stock price of BDT456.00 is trading 43.6% below its estimated GF Value™ of BDT808.89. GuruFocus considers Renata to be Significantly Undervalued.

Key valuation signals for DHA:RENATA:

  • Interest Coverage: 4.01 (82% below median its 10-year median of 22.45)
  • GF Value™: BDT808.89 vs. price of BDT456.00 (43.6% below fair value)
  • GF Score™: 85/100 with 7 warning signs
  • Industry Position: 68.5% below the Drug Manufacturers median (#541 of 686)

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


Renata Business Description

Address Plot Number 1, Milk Vita Road, Section-7, GPO Box No. 303, Mirpur, Dhaka, BGD, 1216
Renata PLC is a Bangladesh based pharmaceutical company. It is engaged in the manufacturing, marketing, and distribution of Human Pharmaceuticals, Animal Health Medicines, Nutritionals, and Vaccines. It manufactures various pharmaceutical products including Beconex Zi Syrup, Cabolin Tablet, Flontin Tablet, Ivana Tablet, and others. Some of the animal health products offered by the company are Doxivet Powder, Fevenil Injection, Diadin Bolus, Renamet Tablet, and others. The company operates in Bangladesh and sells its products locally and internationally.
85GF Score

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

BDT456.00
Price
BDT808.89
GF Value