Ferozsons Laboratories (KAR:FEROZ) Interest Coverage: 5.06 (As of Mar. 2026) — 69% Below Median

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KAR:FEROZ Ferozsons Laboratories Ltd KAR:FEROZ
70 GF Score
Price ₨391.89
GF Value ₨419.78
Valuation Fairly Valued
! 4 Warning Signs
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What is Ferozsons Laboratories Interest Coverage?

Ferozsons Laboratories KAR:FEROZ -2.38% 70 Interest Coverage is 5.06 as of Mar. 2026, which is 69% below its 10-year median of 16.36. GuruFocus rates KAR:FEROZ with a GF Score™ of 70/100 and a GF Value™ of ₨419.78 (Fairly Valued). The stock has 4 warning signs investors should review. Among 687 Drug Manufacturers companies, Ferozsons Laboratories ranks worse than 65.79% 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. Ferozsons Laboratories's Operating Income for the three months ended in Mar. 2026 was ₨472 Mil. Ferozsons Laboratories's Interest Expense for the three months ended in Mar. 2026 was ₨-93 Mil. Ferozsons Laboratories's interest coverage for the quarter that ended in Mar. 2026 was 5.06. The higher the ratio, the stronger the company's financial strength is.

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

KAR:FEROZ' s Interest Coverage Range Over the Past 10 Years
Min: 2.45   Med: 16.36   Max: 4518.32
Current: 6.16


KAR:FEROZ's Interest Coverage is ranked worse than
65.79% of 687 companies
in the Drug Manufacturers industry
Industry Median: 12.75 vs KAR:FEROZ: 6.16

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


Ferozsons Laboratories  (KAR:FEROZ) 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 .


Ferozsons Laboratories Interest Coverage Related Terms


Ferozsons Laboratories Interest Coverage Historical Data

* Premium members only.

The historical data trend for Ferozsons Laboratories'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.

Ferozsons Laboratories Interest Coverage Chart

Ferozsons Laboratories 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 45.05 14.61 3.20 2.45 3.49

Ferozsons Laboratories 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 3.92 7.38 5.65 6.82 5.06

KAR:FEROZ vs ZTS, UTHR, VTRS: Interest Coverage Comparison

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


Ferozsons Laboratories Interest Coverage vs Drug Manufacturers Industry

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

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


KAR:FEROZ
70GF Score
Ferozsons Laboratories Ltd KAR:FEROZ
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Ferozsons Laboratories 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.

Ferozsons Laboratories'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, Ferozsons Laboratories's Interest Expense was ₨-551 Mil. Its Operating Income was ₨1,923 Mil. And its Long-Term Debt & Capital Lease Obligation was ₨1,648 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2025 )/Interest Expense (A: Jun. 2025 )
=-1*1922.887/-550.695
=3.49

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

Here, for the three months ended in Mar. 2026, Ferozsons Laboratories's Interest Expense was ₨-93 Mil. Its Operating Income was ₨472 Mil. And its Long-Term Debt & Capital Lease Obligation was ₨1,395 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*471.812/-93.256
=5.06

* 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 5.06 mean?
Ferozsons Laboratories (KAR:FEROZ) has a Interest Coverage of 5.06 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Ferozsons Laboratories and its competitors. This is 69% below median its historical median of 16.36. Over the past decade, Ferozsons Laboratories' Interest Coverage has ranged from 2.45 to 4,518.32. According to the industry distribution chart, Ferozsons Laboratories ranks #452 out of 687 companies in the Drug Manufacturers industry, placing it in the top 65.8%.
Is Ferozsons Laboratories' Interest Coverage too high?
Ferozsons Laboratories' current Interest Coverage of 5.06 is 69% below median its 10-year median of 16.36. Over the past 10 years, this metric has ranged from a low of 2.45 to a high of 4,518.32. The Drug Manufacturers industry median Interest Coverage is 12.75. Ferozsons Laboratories' value of 5.06 is 60.3% below this industry median. Based on the distribution chart, Ferozsons Laboratories ranks #452 out of 687 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Ferozsons Laboratories has a GF Score™ of 70/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Ferozsons Laboratories' Interest Coverage compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Ferozsons Laboratories ranks #452 out of 687 companies for Interest Coverage. This places Ferozsons Laboratories in the lower half of its industry. The industry median Interest Coverage is 12.75. Ferozsons Laboratories' value of 5.06 is 60.3% below this benchmark. Historically, Ferozsons Laboratories' own Interest Coverage has ranged from 2.45 to 4,518.32 over the past decade. While the company's 10-year median is 16.36 vs. the industry median of 12.75, Ferozsons Laboratories 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 12.75, based on 687 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. Ferozsons Laboratories's current Interest Coverage of 5.06 is 60.3% 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 Ferozsons Laboratories and its competitors. For the Drug Manufacturers industry, the median Interest Coverage is 12.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ferozsons Laboratories's current Interest Coverage is 5.06, which is 69% below median its own 10-year median of 16.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ferozsons Laboratories stock overvalued right now?
Based on GuruFocus' analysis, Ferozsons Laboratories (KAR:FEROZ) is currently considered Fairly Valued. The stock's GF Value™ is ₨419.78, compared to a current price of ₨391.89 — trading 6.6% below its estimated fair value. The current Interest Coverage is 5.06, which is 69% below median its 10-year median of 16.36 and 60.3% below the Drug Manufacturers industry median of 12.75. Ferozsons Laboratories' overall GF Score™ is 70/100 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 Ferozsons Laboratories (KAR:FEROZ), the current Interest Coverage is 5.06 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 Ferozsons Laboratories (KAR:FEROZ) Overvalued in 2026?

Based on GuruFocus' analysis, Ferozsons Laboratories stock appears to be undervalued. The current stock price of ₨391.89 is trading 6.6% below its estimated GF Value™ of ₨419.78. GuruFocus considers Ferozsons Laboratories to be Fairly Valued.

Key valuation signals for KAR:FEROZ:

  • Interest Coverage: 5.06 (69% below median its 10-year median of 16.36)
  • GF Value™: ₨419.78 vs. price of ₨391.89 (6.6% below fair value)
  • GF Score™: 70/100 with 4 warning signs
  • Industry Position: 60.3% below the Drug Manufacturers median (#452 of 687)

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


Ferozsons Laboratories Business Description

Address 5 K.M Sunder Raiwind Road, Lahore, PB, PAK
Ferozsons Laboratories Ltd is a pharmaceutical company. It is engaged in the import, manufacture, and sale of pharmaceuticals products and medical devices. The company operates in the therapeutic areas of dermatology, anti-infective treatments, gastroenterology, hepatology, cardiology, and diabetes. It manufactures tablets, capsules, syrups, suspensions, creams, and ointments. The company operates in three segments namely Ferozsons, BF Biosciences, and Others. The group sells its products in Pakistan and internationally, of which the majority of the revenue is generated from the sales made in Pakistan.
70GF Score

Get the complete analysis for KAR:FEROZ

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

₨391.89
Price
₨419.78
GF Value