Unity Foods (KAR:UNITY) Interest Coverage: 0.90 (As of Sep. 2025) — 81% Below Median


KAR:UNITY Unity Foods Ltd KAR:UNITY
65 GF Score
Price ₨11.12
GF Value ₨38.42
Valuation Possible Value Trap
! 7 Warning Signs
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What is Unity Foods Interest Coverage?

Unity Foods KAR:UNITY 65 Interest Coverage is 0.90 as of Sep. 2025, which is 81% below its 10-year median of 4.73. GuruFocus rates KAR:UNITY with a GF Score™ of 65/100 and a GF Value™ of ₨38.42 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 1,510 Consumer Packaged Goods companies, Unity Foods ranks worse than 88.48% 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. Unity Foods's Operating Income for the three months ended in Sep. 2025 was ₨1,304 Mil. Unity Foods's Interest Expense for the three months ended in Sep. 2025 was ₨-1,447 Mil. Unity Foods's interest coverage for the quarter that ended in Sep. 2025 was 0.90. 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. Unity Foods Ltd interest coverage is 1.38, which is low.

The historical rank and industry rank for Unity Foods's Interest Coverage or its related term are showing as below:

KAR:UNITY' s Interest Coverage Range Over the Past 10 Years
Min: 0.47   Med: 4.73   Max: 8.32
Current: 1.38


KAR:UNITY's Interest Coverage is ranked worse than
88.48% of 1510 companies
in the Consumer Packaged Goods industry
Industry Median: 8.64 vs KAR:UNITY: 1.38

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


Unity Foods  (KAR:UNITY) 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 .


Unity Foods Interest Coverage Related Terms


Unity Foods Interest Coverage Historical Data

* Premium members only.

The historical data trend for Unity Foods'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.

Unity Foods Interest Coverage Chart

Unity Foods Annual Data
Trend Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only 8.32 5.30 3.97 0.47 1.35

Unity Foods Quarterly Data
Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25
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 0.81 0.71 1.04 9.37 0.90

KAR:UNITY vs KHC, GIS, JBS: Interest Coverage Comparison

For the Packaged Foods subindustry, Unity Foods'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.


Unity Foods Interest Coverage vs Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Unity Foods's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Unity Foods's Interest Coverage falls into.


KAR:UNITY
65GF Score
Unity Foods Ltd KAR:UNITY
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Unity Foods 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.

Unity Foods'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, Unity Foods's Interest Expense was ₨-5,696 Mil. Its Operating Income was ₨7,702 Mil. And its Long-Term Debt & Capital Lease Obligation was ₨2,424 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2025 )/Interest Expense (A: Jun. 2025 )
=-1*7701.903/-5695.673
=1.35

Unity Foods's Interest Coverage for the quarter that ended in Sep. 2025 is calculated as

Here, for the three months ended in Sep. 2025, Unity Foods's Interest Expense was ₨-1,447 Mil. Its Operating Income was ₨1,304 Mil. And its Long-Term Debt & Capital Lease Obligation was ₨2,401 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2025 )/Interest Expense (Q: Sep. 2025 )
=-1*1303.575/-1447.071
=0.90

* 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 0.90 mean?
Unity Foods (KAR:UNITY) has a Interest Coverage of 0.90 as of Sep. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Unity Foods and its competitors. This is 81% below median its historical median of 4.73. Over the past decade, Unity Foods' Interest Coverage has ranged from 0.47 to 8.32. According to the industry distribution chart, Unity Foods ranks #1336 out of 1510 companies in the Consumer Packaged Goods industry, placing it in the top 88.5%.
Is Unity Foods' Interest Coverage too high?
Unity Foods' current Interest Coverage of 0.90 is 81% below median its 10-year median of 4.73. Over the past 10 years, this metric has ranged from a low of 0.47 to a high of 8.32. The Consumer Packaged Goods industry median Interest Coverage is 8.64. Unity Foods' value of 0.90 is 89.6% below this industry median. Based on the distribution chart, Unity Foods ranks #1336 out of 1510 companies in the Consumer Packaged Goods industry, which is in the bottom quartile relative to peers. Overall, Unity Foods has a GF Score™ of 65/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Unity Foods' Interest Coverage compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Unity Foods ranks #1336 out of 1510 companies for Interest Coverage. This places Unity Foods in the lower half of its industry. The industry median Interest Coverage is 8.64. Unity Foods' value of 0.90 is 89.6% below this benchmark. Historically, Unity Foods' own Interest Coverage has ranged from 0.47 to 8.32 over the past decade. While the company's 10-year median is 4.73 vs. the industry median of 8.64, Unity Foods 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 Consumer Packaged Goods company?
The median Interest Coverage among Consumer Packaged Goods companies is 8.64, based on 1,510 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. Unity Foods's current Interest Coverage of 0.90 is 89.6% 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 Unity Foods and its competitors. For the Consumer Packaged Goods industry, the median Interest Coverage is 8.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Unity Foods's current Interest Coverage is 0.90, which is 81% below median its own 10-year median of 4.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Unity Foods stock overvalued right now?
Based on GuruFocus' analysis, Unity Foods (KAR:UNITY) is currently considered Possible Value Trap. The stock's GF Value™ is ₨38.42, compared to a current price of ₨11.12 — trading 71.1% below its estimated fair value. The current Interest Coverage is 0.90, which is 81% below median its 10-year median of 4.73 and 89.6% below the Consumer Packaged Goods industry median of 8.64. Unity Foods' overall GF Score™ is 65/100 with 7 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 Unity Foods (KAR:UNITY), the current Interest Coverage is 0.90 as of Sep. 2025. 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 Unity Foods (KAR:UNITY) Overvalued in 2026?

Based on GuruFocus' analysis, Unity Foods stock appears to be undervalued. The current stock price of ₨11.12 is trading 71.1% below its estimated GF Value™ of ₨38.42. GuruFocus considers Unity Foods to be Possible Value Trap.

Key valuation signals for KAR:UNITY:

  • Interest Coverage: 0.90 (81% below median its 10-year median of 4.73)
  • GF Value™: ₨38.42 vs. price of ₨11.12 (71.1% below fair value)
  • GF Score™: 65/100 with 7 warning signs
  • Industry Position: 89.6% below the Consumer Packaged Goods median (#1336 of 1510)

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


Unity Foods Business Description

Address Unity Tower, Plot No. 8-C, P.E.C.H.S, Block - 6, Karachi, SD, PAK, 75400
Unity Foods Ltd is engaged in edible oil extraction, refining, and the distribution of grains and agro commodities. Its product offerings include Oilseeds, Feed Ingredients, and Other Feed Ingredients. The company's brand includes Pure and Crown Feeds.
65GF Score

Get the complete analysis for KAR:UNITY

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

₨11.12
Price
₨38.42
GF Value