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Lotte Chemical PakistanKAR:LOTCHEM +0.54%72 Interest Coverage is 22.85 as of Mar. 2026, which is 7% below its 10-year median of 24.45. GuruFocus rates KAR:LOTCHEM with a GF Score™ of 72/100 and a GF Value™ of ₨18.67 (Significantly Overvalued). The stock has 11 warning signs investors should review. Among 1,232 Chemicals companies, Lotte Chemical Pakistan ranks worse than 58.52% 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. Lotte Chemical Pakistan's
Operating Income
for the
three
months ended in Mar. 2026 was ₨2,473 Mil. Lotte Chemical Pakistan's Interest Expense for the
three
months ended in Mar. 2026 was ₨-108 Mil.
Lotte Chemical Pakistan's interest coverage for the quarter that ended in Mar. 2026 was 22.85.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Lotte Chemical Pakistan's Interest Coverage or its related term are showing as below:
KAR:LOTCHEM'
s Interest Coverage Range Over the Past 10 Years
Min: 6.95 Med: 24.45 Max: 277047.39
Current: 6.95
KAR:LOTCHEM's Interest Coverage is ranked worse than 58.52% of 1232
companies
in the Chemicals industry
Industry Median: 10.13
vs KAR:LOTCHEM: 6.95
Lotte Chemical Pakistan (KAR:LOTCHEM) 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 .
Lotte Chemical Pakistan Interest Coverage Related Terms
Lotte Chemical Pakistan Interest Coverage Historical Data
* Premium members only.
The historical data trend for Lotte Chemical 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.
KAR:LOTCHEM vs LIN, SHW, ECL: Interest Coverage Comparison
For the Specialty Chemicals subindustry, Lotte Chemical 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.
Lotte Chemical Pakistan Interest Coverage vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Lotte Chemical Pakistan's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Lotte Chemical Pakistan's Interest Coverage falls into.
Lotte Chemical 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:
* 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.
Lotte Chemical Pakistan (KAR:LOTCHEM) has a Interest Coverage of 22.85 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Lotte Chemical Pakistan and its competitors. This is near median its historical median of 24.45. Over the past decade, Lotte Chemical Pakistan's Interest Coverage has ranged from 6.95 to 277,047.39. According to the industry distribution chart, Lotte Chemical Pakistan ranks #721 out of 1232 companies in the Chemicals industry, placing it in the top 58.5%.
Is Lotte Chemical Pakistan's Interest Coverage too high?
Lotte Chemical Pakistan's current Interest Coverage of 22.85 is near median its 10-year median of 24.45. Over the past 10 years, this metric has ranged from a low of 6.95 to a high of 277,047.39. The Chemicals industry median Interest Coverage is 10.13. Lotte Chemical Pakistan's value of 22.85 is 125.6% above this industry median. Based on the distribution chart, Lotte Chemical Pakistan ranks #721 out of 1232 companies in the Chemicals industry, which is below the industry midpoint. Overall, Lotte Chemical Pakistan has a GF Score™ of 72/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lotte Chemical Pakistan's Interest Coverage compare to LIN and SHW?
According to the Chemicals industry distribution chart, Lotte Chemical Pakistan ranks #721 out of 1232 companies for Interest Coverage. This places Lotte Chemical Pakistan in the lower half of its industry. The industry median Interest Coverage is 10.13. Lotte Chemical Pakistan's value of 22.85 is 125.6% above this benchmark. Historically, Lotte Chemical Pakistan's own Interest Coverage has ranged from 6.95 to 277,047.39 over the past decade. While the company's 10-year median is 24.45 vs. the industry median of 10.13, Lotte Chemical Pakistan 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 Chemicals company?
The median Interest Coverage among Chemicals companies is 10.13, based on 1,232 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. Lotte Chemical Pakistan's current Interest Coverage of 22.85 is 125.6% 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 Lotte Chemical Pakistan and its competitors. For the Chemicals industry, the median Interest Coverage is 10.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lotte Chemical Pakistan's current Interest Coverage is 22.85, which is near median its own 10-year median of 24.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lotte Chemical Pakistan stock overvalued right now?
Based on GuruFocus' analysis, Lotte Chemical Pakistan (KAR:LOTCHEM) is currently considered Significantly Overvalued. The stock's GF Value™ is ₨18.67, compared to a current price of ₨31.63 — trading 69.4% above its estimated fair value. The current Interest Coverage is 22.85, which is near median its 10-year median of 24.45 and 125.6% above the Chemicals industry median of 10.13. Lotte Chemical Pakistan's overall GF Score™ is 72/100 with 11 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 Lotte Chemical Pakistan (KAR:LOTCHEM), the current Interest Coverage is 22.85 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 Lotte Chemical Pakistan (KAR:LOTCHEM) Overvalued in 2026?
Based on GuruFocus' analysis, Lotte Chemical Pakistan stock appears to be overvalued.
The current stock price of ₨31.63 is trading 69.4% above its estimated GF Value™ of ₨18.67.
GuruFocus considers Lotte Chemical Pakistan to be Significantly Overvalued.
Key valuation signals for KAR:LOTCHEM:
Interest Coverage: 22.85 (near median its 10-year median of 24.45)
GF Value™: ₨18.67 vs. price of ₨31.63 (69.4% above fair value)
Industry Position: 125.6% above the Chemicals median (#721 of 1232)
No single metric tells the full story. See the KAR:LOTCHEM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lotte Chemical Pakistan Ltd is engaged in the manufacture and sale of Purified Terephthalic Acid (PTA). PTA is a key raw material used in the production of polyester fiber, polyester filament yarn, polyester film, and polyethylene terephthalate (PET).
72GF Score
Get the complete analysis for KAR:LOTCHEM
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