Ghandhara Industries (KAR:GHNI) Interest Coverage: 244.22 (As of Mar. 2026) — 5857% Above Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

KAR:GHNI Ghandhara Industries Ltd KAR:GHNI
81 GF Score
Price ₨1,239.20
GF Value ₨1,334.68
Valuation Fairly Valued
! 3 Warning Signs
View Full Analysis

What is Ghandhara Industries Interest Coverage?

Ghandhara Industries KAR:GHNI +0.42% 81 Interest Coverage is 244.22 as of Mar. 2026, which is 5857% above its 10-year median of 4.10. GuruFocus rates KAR:GHNI with a GF Score™ of 81/100 and a GF Value™ of ₨1,334.68 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,059 Vehicles & Parts companies, Ghandhara Industries ranks better than 93.11% 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 Industries's Operating Income for the three months ended in Mar. 2026 was ₨3,518 Mil. Ghandhara Industries's Interest Expense for the three months ended in Mar. 2026 was ₨-14 Mil. Ghandhara Industries's interest coverage for the quarter that ended in Mar. 2026 was 244.22. 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 Industries Ltd has enough cash to cover all of its debt. Its financial situation is stable.

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

KAR:GHNI' s Interest Coverage Range Over the Past 10 Years
Min: 1.1   Med: 4.1   Max: 229.51
Current: 229.51


KAR:GHNI's Interest Coverage is ranked better than
93.11% of 1059 companies
in the Vehicles & Parts industry
Industry Median: 8.39 vs KAR:GHNI: 229.51

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 Industries  (KAR:GHNI) 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 Industries Interest Coverage Related Terms


Ghandhara Industries Interest Coverage Historical Data

* Premium members only.

The historical data trend for Ghandhara 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.

Ghandhara Industries Interest Coverage Chart

Ghandhara Industries 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 2.68 4.10 1.42 2.92 138.64

Ghandhara Industries 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 248.15 0.00 225.72 60.90 244.22

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

For the Auto Manufacturers subindustry, Ghandhara 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.


Ghandhara Industries Interest Coverage vs Vehicles & Parts Industry

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

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


KAR:GHNI
81GF Score
Ghandhara Industries Ltd KAR:GHNI
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Ghandhara Industries 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 Industries'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 Industries's Interest Expense was ₨-44 Mil. Its Operating Income was ₨6,079 Mil. And its Long-Term Debt & Capital Lease Obligation was ₨72 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2025 )/Interest Expense (A: Jun. 2025 )
=-1*6078.874/-43.845
=138.64

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

Here, for the three months ended in Mar. 2026, Ghandhara Industries's Interest Expense was ₨-14 Mil. Its Operating Income was ₨3,518 Mil. And its Long-Term Debt & Capital Lease Obligation was ₨10 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*3518.033/-14.405
=244.22

* 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 244.22 mean?
Ghandhara Industries (KAR:GHNI) has a Interest Coverage of 244.22 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Ghandhara Industries and its competitors. This is 5857% above median its historical median of 4.10. Over the past decade, Ghandhara Industries' Interest Coverage has ranged from 1.10 to 229.51. According to the industry distribution chart, Ghandhara Industries ranks #73 out of 1059 companies in the Vehicles & Parts industry, placing it in the top 6.9%.
Is Ghandhara Industries' Interest Coverage too high?
Ghandhara Industries' current Interest Coverage of 244.22 is 5857% above median its 10-year median of 4.10. Over the past 10 years, this metric has ranged from a low of 1.10 to a high of 229.51. The Vehicles & Parts industry median Interest Coverage is 8.39. Ghandhara Industries' value of 244.22 is 2810.8% above this industry median. Based on the distribution chart, Ghandhara Industries ranks #73 out of 1059 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Ghandhara Industries has a GF Score™ of 81/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Ghandhara Industries' Interest Coverage compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Ghandhara Industries ranks #73 out of 1059 companies for Interest Coverage. This places Ghandhara Industries in the top 7% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 8.39. Ghandhara Industries' value of 244.22 is 2810.8% above this benchmark. Historically, Ghandhara Industries' own Interest Coverage has ranged from 1.10 to 229.51 over the past decade. While the company's 10-year median is 4.10 vs. the industry median of 8.39, Ghandhara Industries 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 8.39, based on 1,059 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 Industries's current Interest Coverage of 244.22 is 2810.8% 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 Industries and its competitors. For the Vehicles & Parts industry, the median Interest Coverage is 8.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ghandhara Industries's current Interest Coverage is 244.22, which is 5857% above median its own 10-year median of 4.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ghandhara Industries stock overvalued right now?
Based on GuruFocus' analysis, Ghandhara Industries (KAR:GHNI) is currently considered Fairly Valued. The stock's GF Value™ is ₨1,334.68, compared to a current price of ₨1,239.20 — trading 7.2% below its estimated fair value. The current Interest Coverage is 244.22, which is 5857% above median its 10-year median of 4.10 and 2810.8% above the Vehicles & Parts industry median of 8.39. Ghandhara Industries' overall GF Score™ is 81/100 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 Industries (KAR:GHNI), the current Interest Coverage is 244.22 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 Industries (KAR:GHNI) Overvalued in 2026?

Based on GuruFocus' analysis, Ghandhara Industries stock appears to be undervalued. The current stock price of ₨1,239.20 is trading 7.2% below its estimated GF Value™ of ₨1,334.68. GuruFocus considers Ghandhara Industries to be Fairly Valued.

Key valuation signals for KAR:GHNI:

  • Interest Coverage: 244.22 (5857% above median its 10-year median of 4.10)
  • GF Value™: ₨1,334.68 vs. price of ₨1,239.20 (7.2% below fair value)
  • GF Score™: 81/100 with 3 warning signs
  • Industry Position: 2810.8% above the Vehicles & Parts median (#73 of 1059)

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


Ghandhara Industries Business Description

Address F-3, Hub Chowki Road, S.I.T.E, P.O. Box No. 2706, Karachi, SD, PAK, 75730
Ghandhara Industries Ltd is a Pakistan based company. It is engaged in the manufacturing, assembly and marketing of Isuzu DMAX Pickups, ISUZU Trucks, Bus Chassis and fabrication of Bus and Load bodies. Its products include Rigid Truck & Prime Mover, Hi- spark single cab, Microbus, Pickup, cross crew cab, lander single cab, Light Commercial Vehicles and others.
81GF Score

Get the complete analysis for KAR:GHNI

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

₨1,239.20
Price
₨1,334.68
GF Value