Millat TractorsKAR:MTL +0.14%78 Interest Coverage is 17.56 as of Mar. 2026, which is 50% below its 10-year median of 35.39. GuruFocus rates KAR:MTL with a GF Score™ of 78/100 and a GF Value™ of ₨211.66 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 169 Farm & Heavy Construction Machinery companies, Millat Tractors ranks worse than 53.85% 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. Millat Tractors's
Operating Income
for the
three
months ended in Mar. 2026 was ₨5,108 Mil. Millat Tractors's Interest Expense for the
three
months ended in Mar. 2026 was ₨-291 Mil.
Millat Tractors's interest coverage for the quarter that ended in Mar. 2026 was 17.56.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Millat Tractors's Interest Coverage or its related term are showing as below:
KAR:MTL'
s Interest Coverage Range Over the Past 10 Years
Min: 4.63 Med: 35.39 Max: 615.3
Current: 8.44
KAR:MTL's Interest Coverage is ranked worse than 53.85% of 169
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 9.32
vs KAR:MTL: 8.44
Millat Tractors (KAR:MTL) 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 .
Millat Tractors Interest Coverage Related Terms
Millat Tractors Interest Coverage Historical Data
* Premium members only.
The historical data trend for Millat Tractors'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:MTL vs CAT, DE, PCAR: Interest Coverage Comparison
For the Farm & Heavy Construction Machinery subindustry, Millat Tractors'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.
Millat Tractors Interest Coverage vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Millat Tractors's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Millat Tractors'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.
Millat Tractors (KAR:MTL) has a Interest Coverage of 17.56 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Millat Tractors and its competitors. This is 50% below median its historical median of 35.39. Over the past decade, Millat Tractors' Interest Coverage has ranged from 4.63 to 615.30. According to the industry distribution chart, Millat Tractors ranks #91 out of 169 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 53.8%.
Is Millat Tractors' Interest Coverage too high?
Millat Tractors' current Interest Coverage of 17.56 is 50% below median its 10-year median of 35.39. Over the past 10 years, this metric has ranged from a low of 4.63 to a high of 615.30. The Farm & Heavy Construction Machinery industry median Interest Coverage is 9.32. Millat Tractors' value of 17.56 is 88.4% above this industry median. Based on the distribution chart, Millat Tractors ranks #91 out of 169 companies in the Farm & Heavy Construction Machinery industry, which is below the industry midpoint. Overall, Millat Tractors has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Millat Tractors' Interest Coverage compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Millat Tractors ranks #91 out of 169 companies for Interest Coverage. This places Millat Tractors in the lower half of its industry. The industry median Interest Coverage is 9.32. Millat Tractors' value of 17.56 is 88.4% above this benchmark. Historically, Millat Tractors' own Interest Coverage has ranged from 4.63 to 615.30 over the past decade. While the company's 10-year median is 35.39 vs. the industry median of 9.32, Millat Tractors 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 Farm & Heavy Construction Machinery company?
The median Interest Coverage among Farm & Heavy Construction Machinery companies is 9.32, based on 169 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. Millat Tractors's current Interest Coverage of 17.56 is 88.4% 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 Millat Tractors and its competitors. For the Farm & Heavy Construction Machinery industry, the median Interest Coverage is 9.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Millat Tractors's current Interest Coverage is 17.56, which is 50% below median its own 10-year median of 35.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Millat Tractors stock overvalued right now?
Based on GuruFocus' analysis, Millat Tractors (KAR:MTL) is currently considered Significantly Overvalued. The stock's GF Value™ is ₨211.66, compared to a current price of ₨304.95 — trading 44.1% above its estimated fair value. The current Interest Coverage is 17.56, which is 50% below median its 10-year median of 35.39 and 88.4% above the Farm & Heavy Construction Machinery industry median of 9.32. Millat Tractors' overall GF Score™ is 78/100 with 6 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 Millat Tractors (KAR:MTL), the current Interest Coverage is 17.56 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 Millat Tractors (KAR:MTL) Overvalued in 2026?
Based on GuruFocus' analysis, Millat Tractors stock appears to be overvalued.
The current stock price of ₨304.95 is trading 44.1% above its estimated GF Value™ of ₨211.66.
GuruFocus considers Millat Tractors to be Significantly Overvalued.
Key valuation signals for KAR:MTL:
Interest Coverage: 17.56 (50% below median its 10-year median of 35.39)
GF Value™: ₨211.66 vs. price of ₨304.95 (44.1% above fair value)
Industry Position: 88.4% above the Farm & Heavy Construction Machinery median (#91 of 169)
No single metric tells the full story. See the KAR:MTL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Millat Tractors Ltd operates in the automobile sector. It is engaged in assembling and manufacturing of agricultural tractors, implements and multi-application products. The Company is also involved in the sale, implementation and support of IFS applications in Pakistan and abroad. The company's operating segment includes Tractors; Tractor components; Castings and Others. It generates maximum revenue from the Tractors segment. The tractor components segment is engaged in the business of manufacturing automotive, agricultural and industrial vehicle parts and components.
78GF Score
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