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Ajanta PharmaNSE:AJANTPHARM -0.66%95 Interest Coverage is 274.37 as of Jun. 2026, which is 145% above its 10-year median of 112.15. GuruFocus rates NSE:AJANTPHARM with a GF Score™ of 95/100 and a GF Value™ of ₹3,348.50 (Fairly Valued). The stock has 6 warning signs investors should review. Among 676 Drug Manufacturers companies, Ajanta Pharma ranks better than 85.36% 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. Ajanta Pharma's
Operating Income
for the
three
months ended in Jun. 2026 was ₹8,725 Mil. Ajanta Pharma's Interest Expense for the
three
months ended in Jun. 2026 was ₹-32 Mil.
Ajanta Pharma's interest coverage for the quarter that ended in Jun. 2026 was 274.37.
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. Ajanta Pharma Ltd has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for Ajanta Pharma's Interest Coverage or its related term are showing as below:
NSE:AJANTPHARM'
s Interest Coverage Range Over the Past 10 Years
Min: 51.26 Med: 112.15 Max: 1480.9
Current: 213.45
NSE:AJANTPHARM's Interest Coverage is ranked better than 85.36% of 676
companies
in the Drug Manufacturers industry
Industry Median: 13
vs NSE:AJANTPHARM: 213.45
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 .
Ajanta Pharma Interest Coverage Related Terms
Ajanta Pharma Interest Coverage Historical Data
* Premium members only.
The historical data trend for Ajanta Pharma'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.
NSE:AJANTPHARM vs ZTS: Interest Coverage Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Ajanta Pharma'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.
Ajanta Pharma Interest Coverage vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Ajanta Pharma's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Ajanta Pharma'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.
Ajanta Pharma (NSE:AJANTPHARM) has a Interest Coverage of 274.37 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Ajanta Pharma and its competitors. This is 145% above median its historical median of 112.15. Over the past decade, Ajanta Pharma's Interest Coverage has ranged from 51.26 to 1,480.90. According to the industry distribution chart, Ajanta Pharma ranks #99 out of 676 companies in the Drug Manufacturers industry, placing it in the top 14.6%.
Is Ajanta Pharma's Interest Coverage too high?
Ajanta Pharma's current Interest Coverage of 274.37 is 145% above median its 10-year median of 112.15. Over the past 10 years, this metric has ranged from a low of 51.26 to a high of 1,480.90. The Drug Manufacturers industry median Interest Coverage is 13.00. Ajanta Pharma's value of 274.37 is 2010.5% above this industry median. Based on the distribution chart, Ajanta Pharma ranks #99 out of 676 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Ajanta Pharma has a GF Score™ of 95/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Ajanta Pharma's Interest Coverage compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Ajanta Pharma ranks #99 out of 676 companies for Interest Coverage. This places Ajanta Pharma in the top 15% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 13.00. Ajanta Pharma's value of 274.37 is 2010.5% above this benchmark. Historically, Ajanta Pharma's own Interest Coverage has ranged from 51.26 to 1,480.90 over the past decade. While the company's 10-year median is 112.15 vs. the industry median of 13.00, Ajanta Pharma 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 Drug Manufacturers company?
The median Interest Coverage among Drug Manufacturers companies is 13.00, based on 676 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. Ajanta Pharma's current Interest Coverage of 274.37 is 2010.5% 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 Ajanta Pharma and its competitors. For the Drug Manufacturers industry, the median Interest Coverage is 13.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ajanta Pharma's current Interest Coverage is 274.37, which is 145% above median its own 10-year median of 112.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ajanta Pharma stock overvalued right now?
Based on GuruFocus' analysis, Ajanta Pharma (NSE:AJANTPHARM) is currently considered Fairly Valued. The stock's GF Value™ is ₹3,348.50, compared to a current price of ₹3,481.70 — trading 4% above its estimated fair value. The current Interest Coverage is 274.37, which is 145% above median its 10-year median of 112.15 and 2010.5% above the Drug Manufacturers industry median of 13.00. Ajanta Pharma's overall GF Score™ is 95/100 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 Ajanta Pharma (NSE:AJANTPHARM), the current Interest Coverage is 274.37 as of Jun. 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 Ajanta Pharma (NSE:AJANTPHARM) Overvalued in 2026?
Based on GuruFocus' analysis, Ajanta Pharma stock appears to be overvalued.
The current stock price of ₹3,481.70 is trading 4% above its estimated GF Value™ of ₹3,348.50.
GuruFocus considers Ajanta Pharma to be Fairly Valued.
Key valuation signals for NSE:AJANTPHARM:
Interest Coverage: 274.37 (145% above median its 10-year median of 112.15)
GF Value™: ₹3,348.50 vs. price of ₹3,481.70 (4% above fair value)
Industry Position: 2010.5% above the Drug Manufacturers median (#99 of 676)
No single metric tells the full story. See the NSE:AJANTPHARM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ajanta Pharma Ltd is mainly involved in development, manufacturing and marketing of speciality pharmaceutical finished dosages. The operations of the Group are limited to only one segment viz. pharmaceuticals and related products. The company has presence in India, Emerging Market, Africa Institution, and USA. The company generates majority of revenue from Emerging market.
95GF Score
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