Gujarat Alkalies & Chemicals (NSE:GUJALKALI) Interest Coverage: 7.34 (As of Jun. 2026) — 86% Below Median

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NSE:GUJALKALI Gujarat Alkalies & Chemicals Ltd NSE:GUJALKALI
75 GF Score
Price ₹670.80
GF Value ₹747.97
Valuation Modestly Undervalued
! 3 Warning Signs
View Full Analysis

What is Gujarat Alkalies & Chemicals Interest Coverage?

Gujarat Alkalies & Chemicals NSE:GUJALKALI +0.37% 75 Interest Coverage is 7.34 as of Jun. 2026, which is 86% below its 10-year median of 51.08. GuruFocus rates NSE:GUJALKALI with a GF Score™ of 75/100 and a GF Value™ of ₹747.97 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,235 Chemicals companies, Gujarat Alkalies & Chemicals ranks worse than 90.53% 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. Gujarat Alkalies & Chemicals's Operating Income for the three months ended in Jun. 2026 was ₹1,186 Mil. Gujarat Alkalies & Chemicals's Interest Expense for the three months ended in Jun. 2026 was ₹-162 Mil. Gujarat Alkalies & Chemicals's interest coverage for the quarter that ended in Jun. 2026 was 7.34. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Gujarat Alkalies & Chemicals's Interest Coverage or its related term are showing as below:

NSE:GUJALKALI' s Interest Coverage Range Over the Past 10 Years
Min: 1.44   Med: 51.08   Max: 215.7
Current: 1.44


NSE:GUJALKALI's Interest Coverage is ranked worse than
90.53% of 1235 companies
in the Chemicals industry
Industry Median: 10.26 vs NSE:GUJALKALI: 1.44

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


Gujarat Alkalies & Chemicals  (NSE:GUJALKALI) 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 .


Gujarat Alkalies & Chemicals Interest Coverage Related Terms


Gujarat Alkalies & Chemicals Interest Coverage Historical Data

* Premium members only.

The historical data trend for Gujarat Alkalies & Chemicals'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.

Gujarat Alkalies & Chemicals Interest Coverage Chart

Gujarat Alkalies & Chemicals Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 215.70 51.08 0.00 0.00 0.00

Gujarat Alkalies & Chemicals Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
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 1.08 0.00 0.03 0.35 7.34

NSE:GUJALKALI vs DOW: Interest Coverage Comparison

For the Chemicals subindustry, Gujarat Alkalies & Chemicals'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.


Gujarat Alkalies & Chemicals Interest Coverage vs Chemicals Industry

For the Chemicals industry and Basic Materials sector, Gujarat Alkalies & Chemicals's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Gujarat Alkalies & Chemicals's Interest Coverage falls into.


NSE:GUJALKALI
75GF Score
Gujarat Alkalies & Chemicals Ltd NSE:GUJALKALI
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Gujarat Alkalies & Chemicals 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.

Gujarat Alkalies & Chemicals'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, Gujarat Alkalies & Chemicals's Interest Expense was ₹-634 Mil. Its Operating Income was ₹-93 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹2,459 Mil.

Gujarat Alkalies & Chemicals did not have earnings to cover the interest expense.

Gujarat Alkalies & Chemicals's Interest Coverage for the quarter that ended in Jun. 2026 is calculated as

Here, for the three months ended in Jun. 2026, Gujarat Alkalies & Chemicals's Interest Expense was ₹-162 Mil. Its Operating Income was ₹1,186 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹0 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*1185.5/-161.6
=7.34

* 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 7.34 mean?
Gujarat Alkalies & Chemicals (NSE:GUJALKALI) has a Interest Coverage of 7.34 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Gujarat Alkalies & Chemicals and its competitors. This is 86% below median its historical median of 51.08. Over the past decade, Gujarat Alkalies & Chemicals' Interest Coverage has ranged from 1.44 to 215.70. According to the industry distribution chart, Gujarat Alkalies & Chemicals ranks #1118 out of 1235 companies in the Chemicals industry, placing it in the top 90.5%.
Is Gujarat Alkalies & Chemicals' Interest Coverage too high?
Gujarat Alkalies & Chemicals' current Interest Coverage of 7.34 is 86% below median its 10-year median of 51.08. Over the past 10 years, this metric has ranged from a low of 1.44 to a high of 215.70. The Chemicals industry median Interest Coverage is 10.26. Gujarat Alkalies & Chemicals' value of 7.34 is 28.5% below this industry median. Based on the distribution chart, Gujarat Alkalies & Chemicals ranks #1118 out of 1235 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Gujarat Alkalies & Chemicals has a GF Score™ of 75/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Gujarat Alkalies & Chemicals' Interest Coverage compare to DOW?
According to the Chemicals industry distribution chart, Gujarat Alkalies & Chemicals ranks #1118 out of 1235 companies for Interest Coverage. This places Gujarat Alkalies & Chemicals in the lower half of its industry. The industry median Interest Coverage is 10.26. Gujarat Alkalies & Chemicals' value of 7.34 is 28.5% below this benchmark. Historically, Gujarat Alkalies & Chemicals' own Interest Coverage has ranged from 1.44 to 215.70 over the past decade. While the company's 10-year median is 51.08 vs. the industry median of 10.26, Gujarat Alkalies & Chemicals 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 Chemicals company?
The median Interest Coverage among Chemicals companies is 10.26, based on 1,235 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. Gujarat Alkalies & Chemicals's current Interest Coverage of 7.34 is 28.5% 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 Gujarat Alkalies & Chemicals and its competitors. For the Chemicals industry, the median Interest Coverage is 10.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gujarat Alkalies & Chemicals's current Interest Coverage is 7.34, which is 86% below median its own 10-year median of 51.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gujarat Alkalies & Chemicals stock overvalued right now?
Based on GuruFocus' analysis, Gujarat Alkalies & Chemicals (NSE:GUJALKALI) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹747.97, compared to a current price of ₹670.80 — trading 10.3% below its estimated fair value. The current Interest Coverage is 7.34, which is 86% below median its 10-year median of 51.08 and 28.5% below the Chemicals industry median of 10.26. Gujarat Alkalies & Chemicals' overall GF Score™ is 75/100 with 3 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 Gujarat Alkalies & Chemicals (NSE:GUJALKALI), the current Interest Coverage is 7.34 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 Gujarat Alkalies & Chemicals (NSE:GUJALKALI) Overvalued in 2026?

Based on GuruFocus' analysis, Gujarat Alkalies & Chemicals stock appears to be undervalued. The current stock price of ₹670.80 is trading 10.3% below its estimated GF Value™ of ₹747.97. GuruFocus considers Gujarat Alkalies & Chemicals to be Modestly Undervalued.

Key valuation signals for NSE:GUJALKALI:

  • Interest Coverage: 7.34 (86% below median its 10-year median of 51.08)
  • GF Value™: ₹747.97 vs. price of ₹670.80 (10.3% below fair value)
  • GF Score™: 75/100 with 3 warning signs
  • Industry Position: 28.5% below the Chemicals median (#1118 of 1235)

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


Gujarat Alkalies & Chemicals Business Description

Other Exchanges 530001:India
Address Vadodara Complex and Coelho Complex, P.O. Ranoli, Vadodara, GJ, IND, 391350
Gujarat Alkalies & Chemicals Ltd is a chemical manufacturing company. The company's product basket comprises various products, including caustic soda, chlorine, hydrochloric acid, hydrogen, chloromethanes, potassium hydroxide, potassium carbonate, sodium cyanide, hydrogen peroxide, and many others. It serves various industries such as soaps and detergents, glass, chemicals, fertilizers, textiles, alumina refining, water treatments, paper, pharmaceuticals, etc., both directly as well as through dealers. The company operates in a single segment, namely, Chemicals, and caters to both domestic and international markets, of which a majority of its revenue is derived from its customers within India.
75GF Score

Get the complete analysis for NSE:GUJALKALI

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

₹670.80
Price
₹747.97
GF Value