Avalon Technologies (NSE:AVALON) Interest Coverage: 11.54 (As of Mar. 2026) — 158% Above Median


NSE:AVALON Avalon Technologies Ltd NSE:AVALON
77 GF Score
Price ₹1,784.70
GF Value ₹1,132.32
Valuation Significantly Overvalued
! 6 Warning Signs
View Full Analysis

What is Avalon Technologies Interest Coverage?

Avalon Technologies NSE:AVALON +1.97% 77 Interest Coverage is 11.54 as of Mar. 2026, which is 158% above its 10-year median of 4.47. GuruFocus rates NSE:AVALON with a GF Score™ of 77/100 and a GF Value™ of ₹1,132.32 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,672 Hardware companies, Avalon Technologies ranks worse than 59.63% 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. Avalon Technologies's Operating Income for the three months ended in Mar. 2026 was ₹486 Mil. Avalon Technologies's Interest Expense for the three months ended in Mar. 2026 was ₹-42 Mil. Avalon Technologies's interest coverage for the quarter that ended in Mar. 2026 was 11.54. The higher the ratio, the stronger the company's financial strength is.

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

NSE:AVALON' s Interest Coverage Range Over the Past 10 Years
Min: 1.62   Med: 4.47   Max: 9.31
Current: 9.31


NSE:AVALON's Interest Coverage is ranked worse than
59.63% of 1672 companies
in the Hardware industry
Industry Median: 13.73 vs NSE:AVALON: 9.31

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


Avalon Technologies  (NSE:AVALON) 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 .


Avalon Technologies Interest Coverage Related Terms


Avalon Technologies Interest Coverage Historical Data

* Premium members only.

The historical data trend for Avalon Technologies'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.

Avalon Technologies Interest Coverage Chart

Avalon Technologies Annual Data
Trend Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Interest Coverage
Get a 7-Day Free Trial 5.29 4.47 4.08 5.17 9.31

Avalon Technologies Quarterly Data
Mar20 Mar21 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 7.95 5.68 7.30 13.52 11.54

NSE:AVALON vs APH, GLW: Interest Coverage Comparison

For the Electronic Components subindustry, Avalon Technologies'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.


Avalon Technologies Interest Coverage vs Hardware Industry

For the Hardware industry and Technology sector, Avalon Technologies's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Avalon Technologies's Interest Coverage falls into.


NSE:AVALON
77GF Score
Avalon Technologies Ltd NSE:AVALON
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Avalon Technologies 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.

Avalon Technologies'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, Avalon Technologies's Interest Expense was ₹-150 Mil. Its Operating Income was ₹1,397 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹285 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2026 )/Interest Expense (A: Mar. 2026 )
=-1*1397.32/-150.06
=9.31

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

Here, for the three months ended in Mar. 2026, Avalon Technologies's Interest Expense was ₹-42 Mil. Its Operating Income was ₹486 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹285 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*485.51/-42.07
=11.54

* 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 11.54 mean?
Avalon Technologies (NSE:AVALON) has a Interest Coverage of 11.54 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Avalon Technologies and its competitors. This is 158% above median its historical median of 4.47. Over the past decade, Avalon Technologies' Interest Coverage has ranged from 1.62 to 9.31. According to the industry distribution chart, Avalon Technologies ranks #997 out of 1672 companies in the Hardware industry, placing it in the top 59.6%.
Is Avalon Technologies' Interest Coverage too high?
Avalon Technologies' current Interest Coverage of 11.54 is 158% above median its 10-year median of 4.47. Over the past 10 years, this metric has ranged from a low of 1.62 to a high of 9.31. The Hardware industry median Interest Coverage is 13.73. Avalon Technologies' value of 11.54 is 16% below this industry median. Based on the distribution chart, Avalon Technologies ranks #997 out of 1672 companies in the Hardware industry, which is below the industry midpoint. Overall, Avalon Technologies has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Avalon Technologies' Interest Coverage compare to APH and GLW?
According to the Hardware industry distribution chart, Avalon Technologies ranks #997 out of 1672 companies for Interest Coverage. This places Avalon Technologies in the lower half of its industry. The industry median Interest Coverage is 13.73. Avalon Technologies' value of 11.54 is 16% below this benchmark. Historically, Avalon Technologies' own Interest Coverage has ranged from 1.62 to 9.31 over the past decade. While the company's 10-year median is 4.47 vs. the industry median of 13.73, Avalon Technologies 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 Hardware company?
The median Interest Coverage among Hardware companies is 13.73, based on 1,672 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. Avalon Technologies's current Interest Coverage of 11.54 is 16% 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 Avalon Technologies and its competitors. For the Hardware industry, the median Interest Coverage is 13.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Avalon Technologies's current Interest Coverage is 11.54, which is 158% above median its own 10-year median of 4.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Avalon Technologies stock overvalued right now?
Based on GuruFocus' analysis, Avalon Technologies (NSE:AVALON) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹1,132.32, compared to a current price of ₹1,784.70 — trading 57.6% above its estimated fair value. The current Interest Coverage is 11.54, which is 158% above median its 10-year median of 4.47 and 16% below the Hardware industry median of 13.73. Avalon Technologies' overall GF Score™ is 77/100 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 Avalon Technologies (NSE:AVALON), the current Interest Coverage is 11.54 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 Avalon Technologies (NSE:AVALON) Overvalued in 2026?

Based on GuruFocus' analysis, Avalon Technologies stock appears to be overvalued. The current stock price of ₹1,784.70 is trading 57.6% above its estimated GF Value™ of ₹1,132.32. GuruFocus considers Avalon Technologies to be Significantly Overvalued.

Key valuation signals for NSE:AVALON:

  • Interest Coverage: 11.54 (158% above median its 10-year median of 4.47)
  • GF Value™: ₹1,132.32 vs. price of ₹1,784.70 (57.6% above fair value)
  • GF Score™: 77/100 with 6 warning signs
  • Industry Position: 16% below the Hardware median (#997 of 1672)

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


Avalon Technologies Business Description

Other Exchanges 543896:India
Address B-7, First Main Road, MEPZ, Tambaram, Chennai, TN, IND, 600 045
Avalon Technologies Ltd is a fully integrated electronic manufacturing services company. It is engaged in providing Electronics Manufacturing Services (EMS) with capabilities in printed circuit board assembly, custom cable and wire harnesses, etc. Geographically the company generates the majority of its revenue from India.
77GF Score

Get the complete analysis for NSE:AVALON

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

₹1,784.70
Price
₹1,132.32
GF Value