Ghandhara Automobiles (KAR:GAL) Interest Coverage: 248.03 (As of Mar. 2026) — 9224% Above Median


KAR:GAL Ghandhara Automobiles Ltd KAR:GAL
79 GF Score
Price ₨576.02
GF Value ₨640.17
Valuation Modestly Undervalued
! 3 Warning Signs
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What is Ghandhara Automobiles Interest Coverage?

Ghandhara Automobiles KAR:GAL -1.23% 79 Interest Coverage is 248.03 as of Mar. 2026, which is 9224% above its 10-year median of 2.66. GuruFocus rates KAR:GAL with a GF Score™ of 79/100 and a GF Value™ of ₨640.17 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,067 Vehicles & Parts companies, Ghandhara Automobiles ranks better than 94.56% 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. Ghandhara Automobiles's Operating Income for the three months ended in Mar. 2026 was ₨2,700 Mil. Ghandhara Automobiles's Interest Expense for the three months ended in Mar. 2026 was ₨-11 Mil. Ghandhara Automobiles's interest coverage for the quarter that ended in Mar. 2026 was 248.03. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Ghandhara Automobiles Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

KAR:GAL' s Interest Coverage Range Over the Past 10 Years
Min: 0.88   Med: 2.66   Max: 344.51
Current: 344.51


KAR:GAL's Interest Coverage is ranked better than
94.56% of 1067 companies
in the Vehicles & Parts industry
Industry Median: 8.31 vs KAR:GAL: 344.51

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


Ghandhara Automobiles  (KAR:GAL) 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 .


Ghandhara Automobiles Interest Coverage Related Terms


Ghandhara Automobiles Interest Coverage Historical Data

* Premium members only.

The historical data trend for Ghandhara Automobiles'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.

Ghandhara Automobiles Interest Coverage Chart

Ghandhara Automobiles Annual Data
Trend Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Interest Coverage
Get a 7-Day Free Trial 6.37 0.88 1.80 1.54 31.22

Ghandhara Automobiles 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 39.31 0.00 144.49 127.47 248.03

KAR:GAL vs TSLA, GM, F: Interest Coverage Comparison

For the Auto Manufacturers subindustry, Ghandhara Automobiles'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.


Ghandhara Automobiles Interest Coverage vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Ghandhara Automobiles's Interest Coverage distribution charts can be found below:

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


KAR:GAL
79GF Score
Ghandhara Automobiles Ltd KAR:GAL
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Ghandhara Automobiles 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.

Ghandhara Automobiles'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, Ghandhara Automobiles's Interest Expense was ₨-167 Mil. Its Operating Income was ₨5,227 Mil. And its Long-Term Debt & Capital Lease Obligation was ₨578 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2025 )/Interest Expense (A: Jun. 2025 )
=-1*5226.913/-167.437
=31.22

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

Here, for the three months ended in Mar. 2026, Ghandhara Automobiles's Interest Expense was ₨-11 Mil. Its Operating Income was ₨2,700 Mil. And its Long-Term Debt & Capital Lease Obligation was ₨443 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*2700.095/-10.886
=248.03

* 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 248.03 mean?
Ghandhara Automobiles (KAR:GAL) has a Interest Coverage of 248.03 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Ghandhara Automobiles and its competitors. This is 9224% above median its historical median of 2.66. Over the past decade, Ghandhara Automobiles' Interest Coverage has ranged from 0.88 to 344.51. According to the industry distribution chart, Ghandhara Automobiles ranks #58 out of 1067 companies in the Vehicles & Parts industry, placing it in the top 5.4%.
Is Ghandhara Automobiles' Interest Coverage too high?
Ghandhara Automobiles' current Interest Coverage of 248.03 is 9224% above median its 10-year median of 2.66. Over the past 10 years, this metric has ranged from a low of 0.88 to a high of 344.51. The Vehicles & Parts industry median Interest Coverage is 8.31. Ghandhara Automobiles' value of 248.03 is 2884.7% above this industry median. Based on the distribution chart, Ghandhara Automobiles ranks #58 out of 1067 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Ghandhara Automobiles has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ghandhara Automobiles' Interest Coverage compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Ghandhara Automobiles ranks #58 out of 1067 companies for Interest Coverage. This places Ghandhara Automobiles in the top 5% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 8.31. Ghandhara Automobiles' value of 248.03 is 2884.7% above this benchmark. Historically, Ghandhara Automobiles' own Interest Coverage has ranged from 0.88 to 344.51 over the past decade. While the company's 10-year median is 2.66 vs. the industry median of 8.31, Ghandhara Automobiles 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 Vehicles & Parts company?
The median Interest Coverage among Vehicles & Parts companies is 8.31, based on 1,067 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. Ghandhara Automobiles's current Interest Coverage of 248.03 is 2884.7% 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 Ghandhara Automobiles and its competitors. For the Vehicles & Parts industry, the median Interest Coverage is 8.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ghandhara Automobiles's current Interest Coverage is 248.03, which is 9224% above median its own 10-year median of 2.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ghandhara Automobiles stock overvalued right now?
Based on GuruFocus' analysis, Ghandhara Automobiles (KAR:GAL) is currently considered Modestly Undervalued. The stock's GF Value™ is ₨640.17, compared to a current price of ₨576.02 — trading 10% below its estimated fair value. The current Interest Coverage is 248.03, which is 9224% above median its 10-year median of 2.66 and 2884.7% above the Vehicles & Parts industry median of 8.31. Ghandhara Automobiles' overall GF Score™ is 79/100 with 3 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 Ghandhara Automobiles (KAR:GAL), the current Interest Coverage is 248.03 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 Ghandhara Automobiles (KAR:GAL) Overvalued in 2026?

Based on GuruFocus' analysis, Ghandhara Automobiles stock appears to be undervalued. The current stock price of ₨576.02 is trading 10% below its estimated GF Value™ of ₨640.17. GuruFocus considers Ghandhara Automobiles to be Modestly Undervalued.

Key valuation signals for KAR:GAL:

  • Interest Coverage: 248.03 (9224% above median its 10-year median of 2.66)
  • GF Value™: ₨640.17 vs. price of ₨576.02 (10% below fair value)
  • GF Score™: 79/100 with 3 warning signs
  • Industry Position: 2884.7% above the Vehicles & Parts median (#58 of 1067)

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


Ghandhara Automobiles Business Description

Address F-3, Hub Chowki Road, S.I.T.E., Karachi, SD, PAK, 75730
Ghandhara Automobiles Ltd is a company whose principal business is the assembly or progressive manufacturing of vehicles, including JAC Trucks & Pickup, import and sale of Dongfeng and Renault vehicles in Completely Built-up condition, sale of spare parts, and assembly of various other vehicles under contractual arrangements.
79GF Score

Get the complete analysis for KAR:GAL

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

₨576.02
Price
₨640.17
GF Value