Honda Atlas Cars Pakistan (KAR:HCAR) Interest Coverage: 2.73 (As of Mar. 2026) — 85% Below Median


KAR:HCAR Honda Atlas Cars Pakistan Ltd KAR:HCAR
57 GF Score
Price ₨240.45
GF Value ₨461.77
Valuation Significantly Undervalued
! 2 Warning Signs
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What is Honda Atlas Cars Pakistan Interest Coverage?

Honda Atlas Cars Pakistan KAR:HCAR 57 Interest Coverage is 2.73 as of Mar. 2026, which is 85% below its 10-year median of 18.18. GuruFocus rates KAR:HCAR with a GF Score™ of 57/100 and a GF Value™ of ₨461.77 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 1,066 Vehicles & Parts companies, Honda Atlas Cars Pakistan ranks worse than 70.26% 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. Honda Atlas Cars Pakistan's Operating Income for the three months ended in Mar. 2026 was ₨1,032 Mil. Honda Atlas Cars Pakistan's Interest Expense for the three months ended in Mar. 2026 was ₨-378 Mil. Honda Atlas Cars Pakistan's interest coverage for the quarter that ended in Mar. 2026 was 2.73. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Honda Atlas Cars Pakistan's Interest Coverage or its related term are showing as below:

KAR:HCAR' s Interest Coverage Range Over the Past 10 Years
Min: 1.45   Med: 18.18   Max: 49599.74
Current: 3.33


KAR:HCAR's Interest Coverage is ranked worse than
70.26% of 1066 companies
in the Vehicles & Parts industry
Industry Median: 8.295 vs KAR:HCAR: 3.33

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


Honda Atlas Cars Pakistan  (KAR:HCAR) 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 .


Honda Atlas Cars Pakistan Interest Coverage Related Terms


Honda Atlas Cars Pakistan Interest Coverage Historical Data

* Premium members only.

The historical data trend for Honda Atlas Cars Pakistan'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.

Honda Atlas Cars Pakistan Interest Coverage Chart

Honda Atlas Cars Pakistan Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 190.08 15.06 1.45 3.41 3.33

Honda Atlas Cars Pakistan 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 4.68 6.52 3.21 2.65 2.73

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

For the Auto Manufacturers subindustry, Honda Atlas Cars Pakistan'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.


Honda Atlas Cars Pakistan Interest Coverage vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Honda Atlas Cars Pakistan's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Honda Atlas Cars Pakistan's Interest Coverage falls into.


KAR:HCAR
57GF Score
Honda Atlas Cars Pakistan Ltd KAR:HCAR
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Honda Atlas Cars Pakistan 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.

Honda Atlas Cars Pakistan's Interest Coverage for the fiscal year that ended in Mar. 2026 is calculated as

Here, for the fiscal year that ended in Mar. 2026, Honda Atlas Cars Pakistan's Interest Expense was ₨-1,449 Mil. Its Operating Income was ₨4,827 Mil. And its Long-Term Debt & Capital Lease Obligation was ₨1,880 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2026 )/Interest Expense (A: Mar. 2026 )
=-1*4827.136/-1448.647
=3.33

Honda Atlas Cars Pakistan's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Honda Atlas Cars Pakistan's Interest Expense was ₨-378 Mil. Its Operating Income was ₨1,032 Mil. And its Long-Term Debt & Capital Lease Obligation was ₨1,880 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*1032.405/-378.168
=2.73

* 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 2.73 mean?
Honda Atlas Cars Pakistan (KAR:HCAR) has a Interest Coverage of 2.73 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Honda Atlas Cars Pakistan and its competitors. This is 85% below median its historical median of 18.18. Over the past decade, Honda Atlas Cars Pakistan's Interest Coverage has ranged from 1.45 to 49,599.74. According to the industry distribution chart, Honda Atlas Cars Pakistan ranks #749 out of 1066 companies in the Vehicles & Parts industry, placing it in the top 70.3%.
Is Honda Atlas Cars Pakistan's Interest Coverage too high?
Honda Atlas Cars Pakistan's current Interest Coverage of 2.73 is 85% below median its 10-year median of 18.18. Over the past 10 years, this metric has ranged from a low of 1.45 to a high of 49,599.74. The Vehicles & Parts industry median Interest Coverage is 8.30. Honda Atlas Cars Pakistan's value of 2.73 is 67.1% below this industry median. Based on the distribution chart, Honda Atlas Cars Pakistan ranks #749 out of 1066 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Honda Atlas Cars Pakistan has a GF Score™ of 57/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Honda Atlas Cars Pakistan's Interest Coverage compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Honda Atlas Cars Pakistan ranks #749 out of 1066 companies for Interest Coverage. This places Honda Atlas Cars Pakistan in the lower half of its industry. The industry median Interest Coverage is 8.30. Honda Atlas Cars Pakistan's value of 2.73 is 67.1% below this benchmark. Historically, Honda Atlas Cars Pakistan's own Interest Coverage has ranged from 1.45 to 49,599.74 over the past decade. While the company's 10-year median is 18.18 vs. the industry median of 8.30, Honda Atlas Cars Pakistan 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 Vehicles & Parts company?
The median Interest Coverage among Vehicles & Parts companies is 8.30, based on 1,066 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. Honda Atlas Cars Pakistan's current Interest Coverage of 2.73 is 67.1% 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 Honda Atlas Cars Pakistan and its competitors. For the Vehicles & Parts industry, the median Interest Coverage is 8.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Honda Atlas Cars Pakistan's current Interest Coverage is 2.73, which is 85% below median its own 10-year median of 18.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Honda Atlas Cars Pakistan stock overvalued right now?
Based on GuruFocus' analysis, Honda Atlas Cars Pakistan (KAR:HCAR) is currently considered Significantly Undervalued. The stock's GF Value™ is ₨461.77, compared to a current price of ₨240.45 — trading 47.9% below its estimated fair value. The current Interest Coverage is 2.73, which is 85% below median its 10-year median of 18.18 and 67.1% below the Vehicles & Parts industry median of 8.30. Honda Atlas Cars Pakistan's overall GF Score™ is 57/100 with 2 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 Honda Atlas Cars Pakistan (KAR:HCAR), the current Interest Coverage is 2.73 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 Honda Atlas Cars Pakistan (KAR:HCAR) Overvalued in 2026?

Based on GuruFocus' analysis, Honda Atlas Cars Pakistan stock appears to be undervalued. The current stock price of ₨240.45 is trading 47.9% below its estimated GF Value™ of ₨461.77. GuruFocus considers Honda Atlas Cars Pakistan to be Significantly Undervalued.

Key valuation signals for KAR:HCAR:

  • Interest Coverage: 2.73 (85% below median its 10-year median of 18.18)
  • GF Value™: ₨461.77 vs. price of ₨240.45 (47.9% below fair value)
  • GF Score™: 57/100 with 2 warning signs
  • Industry Position: 67.1% below the Vehicles & Parts median (#749 of 1066)

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


Honda Atlas Cars Pakistan Business Description

Address 1-Mcleod Road, Lahore, PB, PAK
Honda Atlas Cars Pakistan Ltd is engaged in assembling and progressive manufacturing and sale of Honda vehicles and spare parts. Its segments include the Manufacturing and Trading segment. The manufacturing segment relates to the sale of locally manufactured cars and parts, and the Trading segment relates to the trading of completely built units (CBUs) and parts. It offers car models, such as the Honda Accord, Honda CR-V, Honda CR-Z, Honda HR-V, and Honda City in various colors with technology features. Honda derives the majority of its revenue from the Manufacturing segment. Geographically, it operates in Pakistan, Thailand, and Japan.
57GF Score

Get the complete analysis for KAR:HCAR

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

₨240.45
Price
₨461.77
GF Value