Sazgar Engineering Works (KAR:SAZEW) Interest Coverage: 97.18 (As of Mar. 2026) — 24% Below Median

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KAR:SAZEW Sazgar Engineering Works Ltd KAR:SAZEW
99 GF Score
Price ₨1,998.49
GF Value ₨2,007.69
Valuation Fairly Valued
! 1 Warning Sign
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What is Sazgar Engineering Works Interest Coverage?

Sazgar Engineering Works KAR:SAZEW -0.66% 99 Interest Coverage is 97.18 as of Mar. 2026, which is 24% below its 10-year median of 127.26. GuruFocus rates KAR:SAZEW with a GF Score™ of 99/100 and a GF Value™ of ₨2,007.69 (Fairly Valued). The stock has 1 warning sign investors should review. Among 1,068 Vehicles & Parts companies, Sazgar Engineering Works ranks better than 89.51% 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. Sazgar Engineering Works's Operating Income for the three months ended in Mar. 2026 was ₨9,913 Mil. Sazgar Engineering Works's Interest Expense for the three months ended in Mar. 2026 was ₨-102 Mil. Sazgar Engineering Works's interest coverage for the quarter that ended in Mar. 2026 was 97.18. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Sazgar Engineering Works Ltd has enough cash to cover all of its debt. Its financial situation is stable.

The historical rank and industry rank for Sazgar Engineering Works's Interest Coverage or its related term are showing as below:

KAR:SAZEW' s Interest Coverage Range Over the Past 10 Years
Min: 35.9   Med: 127.26   Max: 883.64
Current: 122.23


KAR:SAZEW's Interest Coverage is ranked better than
89.51% of 1068 companies
in the Vehicles & Parts industry
Industry Median: 8.335 vs KAR:SAZEW: 122.23

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


Sazgar Engineering Works  (KAR:SAZEW) 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 .


Sazgar Engineering Works Interest Coverage Related Terms


Sazgar Engineering Works Interest Coverage Historical Data

* Premium members only.

The historical data trend for Sazgar Engineering Works'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.

Sazgar Engineering Works Interest Coverage Chart

Sazgar Engineering Works Annual Data
Trend Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only 55.55 127.26 883.64 206.40 196.73

Sazgar Engineering Works 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 193.15 0.00 85.94 49.94 97.18

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

For the Auto Manufacturers subindustry, Sazgar Engineering Works'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.


Sazgar Engineering Works Interest Coverage vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Sazgar Engineering Works's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Sazgar Engineering Works's Interest Coverage falls into.


KAR:SAZEW
99GF Score
Sazgar Engineering Works Ltd KAR:SAZEW
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Sazgar Engineering Works 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.

Sazgar Engineering Works's Interest Coverage for the fiscal year that ended in Jun. 2025 is calculated as

Here, for the fiscal year that ended in Jun. 2025, Sazgar Engineering Works's Interest Expense was ₨-130 Mil. Its Operating Income was ₨25,666 Mil. And its Long-Term Debt & Capital Lease Obligation was ₨50 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2025 )/Interest Expense (A: Jun. 2025 )
=-1*25665.909/-130.46
=196.73

Sazgar Engineering Works's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Sazgar Engineering Works's Interest Expense was ₨-102 Mil. Its Operating Income was ₨9,913 Mil. And its Long-Term Debt & Capital Lease Obligation was ₨19 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*9913.082/-102.012
=97.18

* 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 97.18 mean?
Sazgar Engineering Works (KAR:SAZEW) has a Interest Coverage of 97.18 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Sazgar Engineering Works and its competitors. This is 24% below median its historical median of 127.26. Over the past decade, Sazgar Engineering Works' Interest Coverage has ranged from 35.90 to 883.64. According to the industry distribution chart, Sazgar Engineering Works ranks #112 out of 1068 companies in the Vehicles & Parts industry, placing it in the top 10.5%.
Is Sazgar Engineering Works' Interest Coverage too high?
Sazgar Engineering Works' current Interest Coverage of 97.18 is 24% below median its 10-year median of 127.26. Over the past 10 years, this metric has ranged from a low of 35.90 to a high of 883.64. The Vehicles & Parts industry median Interest Coverage is 8.34. Sazgar Engineering Works' value of 97.18 is 1065.9% above this industry median. Based on the distribution chart, Sazgar Engineering Works ranks #112 out of 1068 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Sazgar Engineering Works has a GF Score™ of 99/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Sazgar Engineering Works' Interest Coverage compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Sazgar Engineering Works ranks #112 out of 1068 companies for Interest Coverage. This places Sazgar Engineering Works in the top 11% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 8.34. Sazgar Engineering Works' value of 97.18 is 1065.9% above this benchmark. Historically, Sazgar Engineering Works' own Interest Coverage has ranged from 35.90 to 883.64 over the past decade. While the company's 10-year median is 127.26 vs. the industry median of 8.34, Sazgar Engineering Works 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 Vehicles & Parts company?
The median Interest Coverage among Vehicles & Parts companies is 8.34, based on 1,068 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. Sazgar Engineering Works's current Interest Coverage of 97.18 is 1065.9% 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 Sazgar Engineering Works and its competitors. For the Vehicles & Parts industry, the median Interest Coverage is 8.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sazgar Engineering Works's current Interest Coverage is 97.18, which is 24% below median its own 10-year median of 127.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sazgar Engineering Works stock overvalued right now?
Based on GuruFocus' analysis, Sazgar Engineering Works (KAR:SAZEW) is currently considered Fairly Valued. The stock's GF Value™ is ₨2,007.69, compared to a current price of ₨1,998.49 — trading 0.5% below its estimated fair value. The current Interest Coverage is 97.18, which is 24% below median its 10-year median of 127.26 and 1065.9% above the Vehicles & Parts industry median of 8.34. Sazgar Engineering Works' overall GF Score™ is 99/100 with 1 warning sign 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 Sazgar Engineering Works (KAR:SAZEW), the current Interest Coverage is 97.18 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 Sazgar Engineering Works (KAR:SAZEW) Overvalued in 2026?

Based on GuruFocus' analysis, Sazgar Engineering Works stock appears to be undervalued. The current stock price of ₨1,998.49 is trading 0.5% below its estimated GF Value™ of ₨2,007.69. GuruFocus considers Sazgar Engineering Works to be Fairly Valued.

Key valuation signals for KAR:SAZEW:

  • Interest Coverage: 97.18 (24% below median its 10-year median of 127.26)
  • GF Value™: ₨2,007.69 vs. price of ₨1,998.49 (0.5% below fair value)
  • GF Score™: 99/100 with 1 warning sign
  • Industry Position: 1065.9% above the Vehicles & Parts median (#112 of 1068)

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


Sazgar Engineering Works Business Description

Address 88-Ali Town, Raiwind Road, Thokar Niaz Baig, Lahore, PB, PAK
Sazgar Engineering Works Ltd is engaged in manufacturing and selling automobiles, including four-wheelers and three-wheelers, producing tractor wheel rims, and marketing home appliances. It markets four-wheelers under the brands HAVAL, BAIC, GWM TANK-500, and ORA, offering hybrid electric and petrol SUVs, and exports three-wheelers under the brand SAZGAR. Tractor wheel rims are supplied to tractor assemblers, and home appliances are marketed under the Whirlpool brand. The Company's revenue mainly comes from Pakistan, with additional sales in Bangladesh, Japan, and other countries. The four-wheeler segment generates the highest revenue.
99GF Score

Get the complete analysis for KAR:SAZEW

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

₨1,998.49
Price
₨2,007.69
GF Value