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. Mughal Iron & Steel Industries's
Operating Income
for the
three
months ended in Mar. 2026 was ₨1,289 Mil. Mughal Iron & Steel Industries's Interest Expense for the
three
months ended in Mar. 2026 was ₨-819 Mil.
Mughal Iron & Steel Industries's interest coverage for the quarter that ended in Mar. 2026 was 1.57.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Mughal Iron & Steel Industries's Interest Coverage or its related term are showing as below:
KAR:MUGHAL'
s Interest Coverage Range Over the Past 10 Years
Min: 1.06 Med: 3.34 Max: 9.86
Current: 2.13
KAR:MUGHAL's Interest Coverage is ranked worse than 74.34% of 456
companies
in the Steel industry
Industry Median: 4.445
vs KAR:MUGHAL: 2.13
Mughal Iron & Steel Industries (KAR:MUGHAL) 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 .
Mughal Iron & Steel Industries Interest Coverage Related Terms
Mughal Iron & Steel Industries Interest Coverage Historical Data
* 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.
Mughal Iron & Steel Industries Interest Coverage Chart
KAR:MUGHAL vs NUE, STLD, RS: Interest Coverage Comparison
For the Steel subindustry, Mughal Iron & Steel 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.
Mughal Iron & Steel Industries Interest Coverage vs Steel Industry
For the Steel industry and Basic Materials sector, Mughal Iron & Steel Industries's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Mughal Iron & Steel Industries's Interest Coverage falls into.
Mughal Iron & Steel 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:
* 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.
Mughal Iron & Steel Industries (KAR:MUGHAL) has a Interest Coverage of 1.57 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Mughal Iron & Steel Industries and its competitors. This is 53% below median its historical median of 3.34. Over the past decade, Mughal Iron & Steel Industries' Interest Coverage has ranged from 1.06 to 9.86. According to the industry distribution chart, Mughal Iron & Steel Industries ranks #339 out of 456 companies in the Steel industry, placing it in the top 74.3%.
Is Mughal Iron & Steel Industries' Interest Coverage too high?
Mughal Iron & Steel Industries' current Interest Coverage of 1.57 is 53% below median its 10-year median of 3.34. Over the past 10 years, this metric has ranged from a low of 1.06 to a high of 9.86. The Steel industry median Interest Coverage is 4.45. Mughal Iron & Steel Industries' value of 1.57 is 64.7% below this industry median. Based on the distribution chart, Mughal Iron & Steel Industries ranks #339 out of 456 companies in the Steel industry, which is below the industry midpoint. Overall, Mughal Iron & Steel Industries has a GF Score™ of 89/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Mughal Iron & Steel Industries' Interest Coverage compare to NUE and STLD?
According to the Steel industry distribution chart, Mughal Iron & Steel Industries ranks #339 out of 456 companies for Interest Coverage. This places Mughal Iron & Steel Industries in the lower half of its industry. The industry median Interest Coverage is 4.45. Mughal Iron & Steel Industries' value of 1.57 is 64.7% below this benchmark. Historically, Mughal Iron & Steel Industries' own Interest Coverage has ranged from 1.06 to 9.86 over the past decade. While the company's 10-year median is 3.34 vs. the industry median of 4.45, Mughal Iron & Steel 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 Steel company?
The median Interest Coverage among Steel companies is 4.45, based on 456 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. Mughal Iron & Steel Industries's current Interest Coverage of 1.57 is 64.7% 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 Mughal Iron & Steel Industries and its competitors. For the Steel industry, the median Interest Coverage is 4.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mughal Iron & Steel Industries's current Interest Coverage is 1.57, which is 53% below median its own 10-year median of 3.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mughal Iron & Steel Industries stock overvalued right now?
Based on GuruFocus' analysis, Mughal Iron & Steel Industries (KAR:MUGHAL) is currently considered Modestly Overvalued. The stock's GF Value™ is ₨69.86, compared to a current price of ₨86.81 — trading 24.3% above its estimated fair value. The current Interest Coverage is 1.57, which is 53% below median its 10-year median of 3.34 and 64.7% below the Steel industry median of 4.45. Mughal Iron & Steel Industries' overall GF Score™ is 89/100 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 Mughal Iron & Steel Industries (KAR:MUGHAL), the current Interest Coverage is 1.57 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 Mughal Iron & Steel Industries (KAR:MUGHAL) Overvalued in 2026?
Based on GuruFocus' analysis, Mughal Iron & Steel Industries stock appears to be overvalued.
The current stock price of ₨86.81 is trading 24.3% above its estimated GF Value™ of ₨69.86.
GuruFocus considers Mughal Iron & Steel Industries to be Modestly Overvalued.
Key valuation signals for KAR:MUGHAL:
Interest Coverage: 1.57 (53% below median its 10-year median of 3.34)
GF Value™: ₨69.86 vs. price of ₨86.81 (24.3% above fair value)
Industry Position: 64.7% below the Steel median (#339 of 456)
No single metric tells the full story. See the KAR:MUGHAL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mughal Iron & Steel Industries Business Description
Mughal Iron & Steel Industries Ltd is engaged in the manufacturing and trading of mild steel products. The operating segments of the company are Ferrous, Non-Ferrous, and the Energy segment. The company's main products involve Steel re-bars (G60 / Mughal Supreme), Girders, Billets, Copper ingots, and Copper granules.
89GF Score
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