Atam Valves (NSE:ATAM) Interest Coverage: 5.51 (As of Mar. 2026) — 32% Above Median


NSE:ATAM Atam Valves Ltd NSE:ATAM
81 GF Score
Price ₹70.02
GF Value ₹117.04
Valuation Significantly Undervalued
! 5 Warning Signs
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What is Atam Valves Interest Coverage?

Atam Valves NSE:ATAM -1.02% 81 Interest Coverage is 5.51 as of Mar. 2026, which is 32% above its 10-year median of 4.16. GuruFocus rates NSE:ATAM with a GF Score™ of 81/100 and a GF Value™ of ₹117.04 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 2,329 Industrial Products companies, Atam Valves ranks worse than 77.03% 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. Atam Valves's Operating Income for the three months ended in Mar. 2026 was ₹14.5 Mil. Atam Valves's Interest Expense for the three months ended in Mar. 2026 was ₹-2.6 Mil. Atam Valves's interest coverage for the quarter that ended in Mar. 2026 was 5.51. The higher the ratio, the stronger the company's financial strength is.

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

NSE:ATAM' s Interest Coverage Range Over the Past 10 Years
Min: 1.23   Med: 4.16   Max: 26.14
Current: 4.16


NSE:ATAM's Interest Coverage is ranked worse than
77.03% of 2329 companies
in the Industrial Products industry
Industry Median: 14.79 vs NSE:ATAM: 4.16

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


Atam Valves  (NSE:ATAM) 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 .


Atam Valves Interest Coverage Related Terms


Atam Valves Interest Coverage Historical Data

* Premium members only.

The historical data trend for Atam Valves'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.

Atam Valves Interest Coverage Chart

Atam Valves Annual Data
Trend Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Interest Coverage
Get a 7-Day Free Trial Premium Member Only 5.25 26.14 8.64 10.63 4.16

Atam Valves Quarterly Data
Mar21 Jun21 Sep21 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 11.04 7.03 5.85 0.00 5.51

NSE:ATAM vs GEV, ETN, PH: Interest Coverage Comparison

For the Specialty Industrial Machinery subindustry, Atam Valves'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.


Atam Valves Interest Coverage vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Atam Valves's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Atam Valves's Interest Coverage falls into.


NSE:ATAM
81GF Score
Atam Valves Ltd NSE:ATAM
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Atam Valves 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.

Atam Valves's Interest Coverage for the fiscal year that ended in Mar. 2026 is calculated as

Here, for the fiscal year that ended in Mar. 2026, Atam Valves's Interest Expense was ₹-10.4 Mil. Its Operating Income was ₹43.1 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹6.5 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2026 )/Interest Expense (A: Mar. 2026 )
=-1*43.126/-10.371
=4.16

Atam Valves's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Atam Valves's Interest Expense was ₹-2.6 Mil. Its Operating Income was ₹14.5 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹6.5 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*14.461/-2.624
=5.51

* 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 5.51 mean?
Atam Valves (NSE:ATAM) has a Interest Coverage of 5.51 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Atam Valves and its competitors. This is 32% above median its historical median of 4.16. Over the past decade, Atam Valves' Interest Coverage has ranged from 1.23 to 26.14. According to the industry distribution chart, Atam Valves ranks #1794 out of 2329 companies in the Industrial Products industry, placing it in the top 77%.
Is Atam Valves' Interest Coverage too high?
Atam Valves' current Interest Coverage of 5.51 is 32% above median its 10-year median of 4.16. Over the past 10 years, this metric has ranged from a low of 1.23 to a high of 26.14. The Industrial Products industry median Interest Coverage is 14.79. Atam Valves' value of 5.51 is 62.7% below this industry median. Based on the distribution chart, Atam Valves ranks #1794 out of 2329 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, Atam Valves has a GF Score™ of 81/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Atam Valves' Interest Coverage compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Atam Valves ranks #1794 out of 2329 companies for Interest Coverage. This places Atam Valves in the lower half of its industry. The industry median Interest Coverage is 14.79. Atam Valves' value of 5.51 is 62.7% below this benchmark. Historically, Atam Valves' own Interest Coverage has ranged from 1.23 to 26.14 over the past decade. While the company's 10-year median is 4.16 vs. the industry median of 14.79, Atam Valves 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 an Industrial Products company?
The median Interest Coverage among Industrial Products companies is 14.79, based on 2,329 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. Atam Valves's current Interest Coverage of 5.51 is 62.7% 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 Atam Valves and its competitors. For the Industrial Products industry, the median Interest Coverage is 14.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Atam Valves's current Interest Coverage is 5.51, which is 32% above median its own 10-year median of 4.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Atam Valves stock overvalued right now?
Based on GuruFocus' analysis, Atam Valves (NSE:ATAM) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹117.04, compared to a current price of ₹70.02 — trading 40.2% below its estimated fair value. The current Interest Coverage is 5.51, which is 32% above median its 10-year median of 4.16 and 62.7% below the Industrial Products industry median of 14.79. Atam Valves' overall GF Score™ is 81/100 with 5 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 Atam Valves (NSE:ATAM), the current Interest Coverage is 5.51 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 Atam Valves (NSE:ATAM) Overvalued in 2026?

Based on GuruFocus' analysis, Atam Valves stock appears to be undervalued. The current stock price of ₹70.02 is trading 40.2% below its estimated GF Value™ of ₹117.04. GuruFocus considers Atam Valves to be Significantly Undervalued.

Key valuation signals for NSE:ATAM:

  • Interest Coverage: 5.51 (32% above median its 10-year median of 4.16)
  • GF Value™: ₹117.04 vs. price of ₹70.02 (40.2% below fair value)
  • GF Score™: 81/100 with 5 warning signs
  • Industry Position: 62.7% below the Industrial Products median (#1794 of 2329)

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


Atam Valves Business Description

Other Exchanges 543236:India
Address 1051, Industrial Area, Jalandhar, PB, IND, 144004
Atam Valves Ltd operates in the single segment of manufacturing and supplying valves, fittings, steam traps, and strainers. The company produces a wide range of valves including gate valves, globe valves, non-return valves, ball valves, butterfly valves, plug valves, parallel slide valves, safety valves, pressure reducing valves, fusible plugs, and water level gauges. Its products serve industrial and domestic applications across sectors such as oil and gas, chemical processing, pharmaceuticals, power plants, marine, food processing, and infrastructure. Atam Valves generates revenue prominently through the sale of these engineered products under its brands.
81GF Score

Get the complete analysis for NSE:ATAM

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

₹70.02
Price
₹117.04
GF Value