PackagesKAR:PKGS -0.55%82 Interest Coverage is 1.94 as of Mar. 2026, which is 4% above its 10-year median of 1.86. GuruFocus rates KAR:PKGS with a GF Score™ of 82/100 and a GF Value™ of ₨649.47 (Modestly Overvalued). The stock has 10 warning signs investors should review. Among 314 Packaging & Containers companies, Packages ranks worse than 85.67% 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. Packages's
Operating Income
for the
three
months ended in Mar. 2026 was ₨6,807 Mil. Packages's Interest Expense for the
three
months ended in Mar. 2026 was ₨-3,512 Mil.
Packages's interest coverage for the quarter that ended in Mar. 2026 was 1.94.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Packages Ltd interest coverage is 1.44, which is low.
The historical rank and industry rank for Packages's Interest Coverage or its related term are showing as below:
KAR:PKGS'
s Interest Coverage Range Over the Past 10 Years
Min: 0.88 Med: 1.86 Max: 4.4
Current: 1.44
KAR:PKGS's Interest Coverage is ranked worse than 85.67% of 314
companies
in the Packaging & Containers industry
Industry Median: 6.125
vs KAR:PKGS: 1.44
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 .
Packages Interest Coverage Related Terms
Packages Interest Coverage Historical Data
* Premium members only.
The historical data trend for Packages'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:PKGS vs SW, PKG, IP: Interest Coverage Comparison
For the Packaging & Containers subindustry, Packages'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.
Packages Interest Coverage vs Packaging & Containers Industry
For the Packaging & Containers industry and Consumer Cyclical sector, Packages's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Packages'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.
Packages (KAR:PKGS) has a Interest Coverage of 1.94 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Packages and its competitors. This is near median its historical median of 1.86. Over the past decade, Packages' Interest Coverage has ranged from 0.88 to 4.40. According to the industry distribution chart, Packages ranks #269 out of 314 companies in the Packaging & Containers industry, placing it in the top 85.7%.
Is Packages' Interest Coverage too high?
Packages' current Interest Coverage of 1.94 is near median its 10-year median of 1.86. Over the past 10 years, this metric has ranged from a low of 0.88 to a high of 4.40. The Packaging & Containers industry median Interest Coverage is 6.13. Packages' value of 1.94 is 68.3% below this industry median. Based on the distribution chart, Packages ranks #269 out of 314 companies in the Packaging & Containers industry, which is in the bottom quartile relative to peers. Overall, Packages has a GF Score™ of 82/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Packages' Interest Coverage compare to SW and PKG?
According to the Packaging & Containers industry distribution chart, Packages ranks #269 out of 314 companies for Interest Coverage. This places Packages in the lower half of its industry. The industry median Interest Coverage is 6.13. Packages' value of 1.94 is 68.3% below this benchmark. Historically, Packages' own Interest Coverage has ranged from 0.88 to 4.40 over the past decade. While the company's 10-year median is 1.86 vs. the industry median of 6.13, Packages 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 Packaging & Containers company?
The median Interest Coverage among Packaging & Containers companies is 6.13, based on 314 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. Packages's current Interest Coverage of 1.94 is 68.3% 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 Packages and its competitors. For the Packaging & Containers industry, the median Interest Coverage is 6.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Packages's current Interest Coverage is 1.94, which is near median its own 10-year median of 1.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Packages stock overvalued right now?
Based on GuruFocus' analysis, Packages (KAR:PKGS) is currently considered Modestly Overvalued. The stock's GF Value™ is ₨649.47, compared to a current price of ₨785.47 — trading 20.9% above its estimated fair value. The current Interest Coverage is 1.94, which is near median its 10-year median of 1.86 and 68.3% below the Packaging & Containers industry median of 6.13. Packages' overall GF Score™ is 82/100 with 10 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 Packages (KAR:PKGS), the current Interest Coverage is 1.94 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 Packages (KAR:PKGS) Overvalued in 2026?
Based on GuruFocus' analysis, Packages stock appears to be overvalued.
The current stock price of ₨785.47 is trading 20.9% above its estimated GF Value™ of ₨649.47.
GuruFocus considers Packages to be Modestly Overvalued.
Key valuation signals for KAR:PKGS:
Interest Coverage: 1.94 (near median its 10-year median of 1.86)
GF Value™: ₨649.47 vs. price of ₨785.47 (20.9% above fair value)
Industry Position: 68.3% below the Packaging & Containers median (#269 of 314)
No single metric tells the full story. See the KAR:PKGS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Packages Ltd is a company that manufactures and sells packaging materials and tissue products & sanitary napkins. It operates through Packaging, Consumer Products, Ink, Real Estate, Paper and Board, Plastic, Pharmaceutical Products, Corn Starch Products, and Unallocated segments. Its Business group is spread across various geographical regions which include Pakistan, Afghanistan, Bahrain, Bangladesh, Indonesia, Kenya, Mauritius, Oman, South Africa, Sri Lanka, and the UAE of which domestic country Pakistan accounts for a larger share of the revenue.
82GF Score
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