Indigo Star Holdings (HKSE:08373) Interest Coverage: 8.17 (As of Dec. 2025) — 77% Below Median

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HKSE:08373 Indigo Star Holdings Ltd HKSE:08373
79 GF Score
Price HK$0.80
GF Value HK$1.12
Valuation Modestly Undervalued
! 5 Warning Signs
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What is Indigo Star Holdings Interest Coverage?

Indigo Star Holdings HKSE:08373 79 Interest Coverage is 8.17 as of Dec. 2025, which is 77% below its 10-year median of 34.96. GuruFocus rates HKSE:08373 with a GF Score™ of 79/100 and a GF Value™ of HK$1.12 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 1,365 Construction companies, Indigo Star Holdings ranks better than 71.58% 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. Indigo Star Holdings's Operating Income for the six months ended in Dec. 2025 was HK$2.1 Mil. Indigo Star Holdings's Interest Expense for the six months ended in Dec. 2025 was HK$-0.3 Mil. Indigo Star Holdings's interest coverage for the quarter that ended in Dec. 2025 was 8.17. The higher the ratio, the stronger the company's financial strength is.

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

HKSE:08373' s Interest Coverage Range Over the Past 10 Years
Min: 10.98   Med: 34.96   Max: 170.18
Current: 25.34


HKSE:08373's Interest Coverage is ranked better than
71.58% of 1365 companies
in the Construction industry
Industry Median: 7.81 vs HKSE:08373: 25.34

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


Indigo Star Holdings  (HKSE:08373) 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 .


Indigo Star Holdings Interest Coverage Related Terms


Indigo Star Holdings Interest Coverage Historical Data

* Premium members only.

The historical data trend for Indigo Star Holdings'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.

Indigo Star Holdings Interest Coverage Chart

Indigo Star Holdings Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.00 10.98 22.56 34.96 25.22

Indigo Star Holdings Semi-Annual Data
Dec15 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
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 93.47 36.93 31.24 37.87 8.17

HKSE:08373 vs PWR, FIX, EME: Interest Coverage Comparison

For the Engineering & Construction subindustry, Indigo Star Holdings'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.


Indigo Star Holdings Interest Coverage vs Construction Industry

For the Construction industry and Industrials sector, Indigo Star Holdings's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Indigo Star Holdings's Interest Coverage falls into.


HKSE:08373
79GF Score
Indigo Star Holdings Ltd HKSE:08373
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Indigo Star Holdings 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.

Indigo Star Holdings's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Indigo Star Holdings's Interest Expense was HK$-0.6 Mil. Its Operating Income was HK$15.4 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$8.5 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*15.36/-0.609
=25.22

Indigo Star Holdings's Interest Coverage for the quarter that ended in Dec. 2025 is calculated as

Here, for the six months ended in Dec. 2025, Indigo Star Holdings's Interest Expense was HK$-0.3 Mil. Its Operating Income was HK$2.1 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$8.5 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*2.116/-0.259
=8.17

* 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 8.17 mean?
Indigo Star Holdings (HKSE:08373) has a Interest Coverage of 8.17 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Indigo Star Holdings and its competitors. This is 77% below median its historical median of 34.96. Over the past decade, Indigo Star Holdings' Interest Coverage has ranged from 10.98 to 170.18. According to the industry distribution chart, Indigo Star Holdings ranks #388 out of 1365 companies in the Construction industry, placing it in the top 28.4%.
Is Indigo Star Holdings' Interest Coverage too high?
Indigo Star Holdings' current Interest Coverage of 8.17 is 77% below median its 10-year median of 34.96. Over the past 10 years, this metric has ranged from a low of 10.98 to a high of 170.18. The Construction industry median Interest Coverage is 7.81. Indigo Star Holdings' value of 8.17 is 4.6% above this industry median. Based on the distribution chart, Indigo Star Holdings ranks #388 out of 1365 companies in the Construction industry, which is above the industry midpoint. Overall, Indigo Star Holdings has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Indigo Star Holdings' Interest Coverage compare to PWR and FIX?
According to the Construction industry distribution chart, Indigo Star Holdings ranks #388 out of 1365 companies for Interest Coverage. This puts Indigo Star Holdings in the upper half of its industry. The industry median Interest Coverage is 7.81. Indigo Star Holdings' value of 8.17 is 4.6% above this benchmark. Historically, Indigo Star Holdings' own Interest Coverage has ranged from 10.98 to 170.18 over the past decade. While the company's 10-year median is 34.96 vs. the industry median of 7.81, Indigo Star Holdings 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 a Construction company?
The median Interest Coverage among Construction companies is 7.81, based on 1,365 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. Indigo Star Holdings's current Interest Coverage of 8.17 is 4.6% 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 Indigo Star Holdings and its competitors. For the Construction industry, the median Interest Coverage is 7.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Indigo Star Holdings's current Interest Coverage is 8.17, which is 77% below median its own 10-year median of 34.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Indigo Star Holdings stock overvalued right now?
Based on GuruFocus' analysis, Indigo Star Holdings (HKSE:08373) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$1.12, compared to a current price of HK$0.80 — trading 28.6% below its estimated fair value. The current Interest Coverage is 8.17, which is 77% below median its 10-year median of 34.96 and 4.6% above the Construction industry median of 7.81. Indigo Star Holdings' overall GF Score™ is 79/100 with 5 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 Indigo Star Holdings (HKSE:08373), the current Interest Coverage is 8.17 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 Indigo Star Holdings (HKSE:08373) Overvalued in 2026?

Based on GuruFocus' analysis, Indigo Star Holdings stock appears to be undervalued. The current stock price of HK$0.80 is trading 28.6% below its estimated GF Value™ of HK$1.12. GuruFocus considers Indigo Star Holdings to be Modestly Undervalued.

Key valuation signals for HKSE:08373:

  • Interest Coverage: 8.17 (77% below median its 10-year median of 34.96)
  • GF Value™: HK$1.12 vs. price of HK$0.80 (28.6% below fair value)
  • GF Score™: 79/100 with 5 warning signs
  • Industry Position: 4.6% above the Construction median (#388 of 1365)

No single metric tells the full story. See the HKSE:08373 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Indigo Star Holdings Business Description

Address 5 Upper Aljunied Link, No. 03-08 Quartz Industrial Building, Singapore, SGP, 367903
Indigo Star Holdings Ltd is a subcontractor specializing in reinforced concrete works and related construction services. The group mainly provides steel reinforcement works, formwork erection, and concrete works, either individually or as an integrated service package, depending on customer requirements. It also engages in the sales of tiles and the trading of mobile phones and accessories. The group operates through three reportable segments: Construction Contract, Sale of Tiles, and Sales of Mobile Phones and Accessories. The Construction Contract segment generates the majority of the revenue. Geographically, the group derives the majority of its revenue from Singapore.
79GF Score

Get the complete analysis for HKSE:08373

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

HK$0.80
Price
HK$1.12
GF Value