Gatron IndustriesKAR:GATI +0.34%48 Interest Coverage is 0.53 as of Mar. 2026, which is 93% below its 10-year median of 7.85. GuruFocus rates KAR:GATI with a GF Score™ of 48/100 and a GF Value™ of ₨127.18 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 739 Manufacturing - Apparel & Accessories companies, Gatron Industries ranks worse than 97.29% 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. Gatron Industries's
Operating Income
for the
three
months ended in Mar. 2026 was ₨182 Mil. Gatron Industries's Interest Expense for the
three
months ended in Mar. 2026 was ₨-345 Mil.
Gatron Industries's interest coverage for the quarter that ended in Mar. 2026 was 0.53.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Gatron Industries Ltds earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.
The historical rank and industry rank for Gatron Industries's Interest Coverage or its related term are showing as below:
KAR:GATI'
s Interest Coverage Range Over the Past 10 Years
Min: 0.34 Med: 7.85 Max: 94.49
Current: 0.34
KAR:GATI's Interest Coverage is ranked worse than 97.29% of 739
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 5.43
vs KAR:GATI: 0.34
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 .
Gatron Industries Interest Coverage Related Terms
Gatron Industries Interest Coverage Historical Data
* Premium members only.
The historical data trend for Gatron Industries'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.
For the Textile Manufacturing subindustry, Gatron Industries'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.
Gatron Industries Interest Coverage vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Gatron Industries's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Gatron Industries'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.
Gatron Industries (KAR:GATI) has a Interest Coverage of 0.53 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Gatron Industries and its competitors. This is 93% below median its historical median of 7.85. Over the past decade, Gatron Industries' Interest Coverage has ranged from 0.34 to 94.49. According to the industry distribution chart, Gatron Industries ranks #719 out of 739 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 97.3%.
Is Gatron Industries' Interest Coverage too high?
Gatron Industries' current Interest Coverage of 0.53 is 93% below median its 10-year median of 7.85. Over the past 10 years, this metric has ranged from a low of 0.34 to a high of 94.49. The Manufacturing - Apparel & Accessories industry median Interest Coverage is 5.43. Gatron Industries' value of 0.53 is 90.2% below this industry median. Based on the distribution chart, Gatron Industries ranks #719 out of 739 companies in the Manufacturing - Apparel & Accessories industry, which is in the bottom quartile relative to peers. Overall, Gatron Industries has a GF Score™ of 48/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Gatron Industries' Interest Coverage compare to competitors?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Gatron Industries ranks #719 out of 739 companies for Interest Coverage. This places Gatron Industries in the lower half of its industry. The industry median Interest Coverage is 5.43. Gatron Industries' value of 0.53 is 90.2% below this benchmark. Historically, Gatron Industries' own Interest Coverage has ranged from 0.34 to 94.49 over the past decade. While the company's 10-year median is 7.85 vs. the industry median of 5.43, Gatron Industries 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 Manufacturing - Apparel & Accessories company?
The median Interest Coverage among Manufacturing - Apparel & Accessories companies is 5.43, based on 739 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. Gatron Industries's current Interest Coverage of 0.53 is 90.2% 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 Gatron Industries and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Interest Coverage is 5.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gatron Industries's current Interest Coverage is 0.53, which is 93% below median its own 10-year median of 7.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gatron Industries stock overvalued right now?
Based on GuruFocus' analysis, Gatron Industries (KAR:GATI) is currently considered Possible Value Trap. The stock's GF Value™ is ₨127.18, compared to a current price of ₨88.82 — trading 30.2% below its estimated fair value. The current Interest Coverage is 0.53, which is 93% below median its 10-year median of 7.85 and 90.2% below the Manufacturing - Apparel & Accessories industry median of 5.43. Gatron Industries' overall GF Score™ is 48/100 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 Gatron Industries (KAR:GATI), the current Interest Coverage is 0.53 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 Gatron Industries (KAR:GATI) Overvalued in 2026?
Based on GuruFocus' analysis, Gatron Industries stock appears to be undervalued.
The current stock price of ₨88.82 is trading 30.2% below its estimated GF Value™ of ₨127.18.
GuruFocus considers Gatron Industries to be Possible Value Trap.
Key valuation signals for KAR:GATI:
Interest Coverage: 0.53 (93% below median its 10-year median of 7.85)
GF Value™: ₨127.18 vs. price of ₨88.82 (30.2% below fair value)
Industry Position: 90.2% below the Manufacturing - Apparel & Accessories median (#719 of 739)
No single metric tells the full story. See the KAR:GATI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gatron Industries Ltd is principally involved in the manufacturing of Polyester Filament Yarn through its self-produced Polyester Polymer/Chips. The Company also produces Pet Preforms. The company's reportable segments are as follows: a) Polyester Filament Yarn - It comprises the manufacturing of Polyester Filament Yarn and its raw material, b) Polyester PET Preforms - It comprises the manufacturing of Polyester PET Preforms and its raw material. The maximum revenue is generated from the Polyester Filament Yarn segment.
48GF Score
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