Arif HabibKAR:AHCL 58 Interest Coverage is 6.88 as of Mar. 2026, which is 133% above its 10-year median of 2.95. GuruFocus rates KAR:AHCL with a GF Score™ of 58/100 and a GF Value™ of ₨6.60 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 320 Utilities - Independent Power Producers companies, Arif Habib ranks better than 72.5% 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. Arif Habib's
Operating Income
for the
three
months ended in Mar. 2026 was ₨928 Mil. Arif Habib's Interest Expense for the
three
months ended in Mar. 2026 was ₨-135 Mil.
Arif Habib's interest coverage for the quarter that ended in Mar. 2026 was 6.88.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Arif Habib's Interest Coverage or its related term are showing as below:
KAR:AHCL'
s Interest Coverage Range Over the Past 10 Years
Min: 1.4 Med: 2.95 Max: 7.37
Current: 5.85
KAR:AHCL's Interest Coverage is ranked better than 72.5% of 320
companies
in the Utilities - Independent Power Producers industry
Industry Median: 2.915
vs KAR:AHCL: 5.85
Arif Habib (KAR:AHCL) 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 .
Arif Habib Interest Coverage Related Terms
Arif Habib Interest Coverage Historical Data
* Premium members only.
The historical data trend for Arif Habib'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.
Arif Habib Interest Coverage Competitor Comparison
For the Utilities - Renewable subindustry, Arif Habib'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.
Arif Habib Interest Coverage vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Arif Habib's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Arif Habib'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.
Arif Habib (KAR:AHCL) has a Interest Coverage of 6.88 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Arif Habib and its competitors. This is 133% above median its historical median of 2.95. Over the past decade, Arif Habib's Interest Coverage has ranged from 1.40 to 7.37. According to the industry distribution chart, Arif Habib ranks #88 out of 320 companies in the Utilities - Independent Power Producers industry, placing it in the top 27.5%.
Is Arif Habib's Interest Coverage too high?
Arif Habib's current Interest Coverage of 6.88 is 133% above median its 10-year median of 2.95. Over the past 10 years, this metric has ranged from a low of 1.40 to a high of 7.37. The Utilities - Independent Power Producers industry median Interest Coverage is 2.92. Arif Habib's value of 6.88 is 136% above this industry median. Based on the distribution chart, Arif Habib ranks #88 out of 320 companies in the Utilities - Independent Power Producers industry, which is above the industry midpoint. Overall, Arif Habib has a GF Score™ of 58/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Arif Habib's Interest Coverage compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, Arif Habib ranks #88 out of 320 companies for Interest Coverage. This puts Arif Habib in the upper half of its industry. The industry median Interest Coverage is 2.92. Arif Habib's value of 6.88 is 136% above this benchmark. Historically, Arif Habib's own Interest Coverage has ranged from 1.40 to 7.37 over the past decade. While the company's 10-year median is 2.95 vs. the industry median of 2.92, Arif Habib 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 an Utilities - Independent Power Producers company?
The median Interest Coverage among Utilities - Independent Power Producers companies is 2.92, based on 320 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. Arif Habib's current Interest Coverage of 6.88 is 136% 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 Arif Habib and its competitors. For the Utilities - Independent Power Producers industry, the median Interest Coverage is 2.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arif Habib's current Interest Coverage is 6.88, which is 133% above median its own 10-year median of 2.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arif Habib stock overvalued right now?
Based on GuruFocus' analysis, Arif Habib (KAR:AHCL) is currently considered Significantly Overvalued. The stock's GF Value™ is ₨6.60, compared to a current price of ₨15.99 — trading 142.3% above its estimated fair value. The current Interest Coverage is 6.88, which is 133% above median its 10-year median of 2.95 and 136% above the Utilities - Independent Power Producers industry median of 2.92. Arif Habib's overall GF Score™ is 58/100 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 Arif Habib (KAR:AHCL), the current Interest Coverage is 6.88 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 Arif Habib (KAR:AHCL) Overvalued in 2026?
Based on GuruFocus' analysis, Arif Habib stock appears to be overvalued.
The current stock price of ₨15.99 is trading 142.3% above its estimated GF Value™ of ₨6.60.
GuruFocus considers Arif Habib to be Significantly Overvalued.
Key valuation signals for KAR:AHCL:
Interest Coverage: 6.88 (133% above median its 10-year median of 2.95)
GF Value™: ₨6.60 vs. price of ₨15.99 (142.3% above fair value)
Industry Position: 136% above the Utilities - Independent Power Producers median (#88 of 320)
No single metric tells the full story. See the KAR:AHCL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arif Habib Corp Ltd generates and sells electricity in Pakistan. It is also engaged in providing equity and debt brokerage, as well as corporate finance services to institutional, corporate, high-net-worth, and retail clients. Its segments are Capital market operations; Brokerage; Energy Development, and Others. The firm generates the majority of revenue from the Energy segment. The Energy segment is engaged in energy development. The brokerage segment is engaged in brokerage, underwriting, corporate consultancy, research, and corporate finance services. Capital market operations segment is engaged in trading of equity securities and maintaining strategic and trading portfolios. Others include assets of RCPL.
58GF Score
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