Magellanic CloudNSE:MCLOUD -3.04%63 Interest Coverage is 5.30 as of Mar. 2026, which is 27% below its 10-year median of 7.31. GuruFocus rates NSE:MCLOUD with a GF Score™ of 63/100 and a GF Value™ of ₹84.68 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 1,705 Software companies, Magellanic Cloud ranks worse than 73.37% 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. Magellanic Cloud's
Operating Income
for the
three
months ended in Mar. 2026 was ₹368 Mil. Magellanic Cloud's Interest Expense for the
three
months ended in Mar. 2026 was ₹-69 Mil.
Magellanic Cloud's interest coverage for the quarter that ended in Mar. 2026 was 5.30.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Magellanic Cloud's Interest Coverage or its related term are showing as below:
NSE:MCLOUD'
s Interest Coverage Range Over the Past 10 Years
Min: 0.3 Med: 7.31 Max: 32.97
Current: 6.42
NSE:MCLOUD's Interest Coverage is ranked worse than 73.37% of 1705
companies
in the Software industry
Industry Median: 24.78
vs NSE:MCLOUD: 6.42
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 .
Magellanic Cloud Interest Coverage Related Terms
Magellanic Cloud Interest Coverage Historical Data
* Premium members only.
The historical data trend for Magellanic Cloud'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:MCLOUD vs IBM, ACN, FISV: Interest Coverage Comparison
For the Information Technology Services subindustry, Magellanic Cloud'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.
Magellanic Cloud Interest Coverage vs Software Industry
For the Software industry and Technology sector, Magellanic Cloud's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Magellanic Cloud'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.
Magellanic Cloud (NSE:MCLOUD) has a Interest Coverage of 5.30 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Magellanic Cloud and its competitors. This is 27% below median its historical median of 7.31. Over the past decade, Magellanic Cloud's Interest Coverage has ranged from 0.30 to 32.97. According to the industry distribution chart, Magellanic Cloud ranks #1251 out of 1705 companies in the Software industry, placing it in the top 73.4%.
Is Magellanic Cloud's Interest Coverage too high?
Magellanic Cloud's current Interest Coverage of 5.30 is 27% below median its 10-year median of 7.31. Over the past 10 years, this metric has ranged from a low of 0.30 to a high of 32.97. The Software industry median Interest Coverage is 24.78. Magellanic Cloud's value of 5.30 is 78.6% below this industry median. Based on the distribution chart, Magellanic Cloud ranks #1251 out of 1705 companies in the Software industry, which is below the industry midpoint. Overall, Magellanic Cloud has a GF Score™ of 63/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Magellanic Cloud's Interest Coverage compare to IBM and ACN?
According to the Software industry distribution chart, Magellanic Cloud ranks #1251 out of 1705 companies for Interest Coverage. This places Magellanic Cloud in the lower half of its industry. The industry median Interest Coverage is 24.78. Magellanic Cloud's value of 5.30 is 78.6% below this benchmark. Historically, Magellanic Cloud's own Interest Coverage has ranged from 0.30 to 32.97 over the past decade. While the company's 10-year median is 7.31 vs. the industry median of 24.78, Magellanic Cloud 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 Software company?
The median Interest Coverage among Software companies is 24.78, based on 1,705 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. Magellanic Cloud's current Interest Coverage of 5.30 is 78.6% 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 Magellanic Cloud and its competitors. For the Software industry, the median Interest Coverage is 24.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Magellanic Cloud's current Interest Coverage is 5.30, which is 27% below median its own 10-year median of 7.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Magellanic Cloud stock overvalued right now?
Based on GuruFocus' analysis, Magellanic Cloud (NSE:MCLOUD) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹84.68, compared to a current price of ₹27.13 — trading 68% below its estimated fair value. The current Interest Coverage is 5.30, which is 27% below median its 10-year median of 7.31 and 78.6% below the Software industry median of 24.78. Magellanic Cloud's overall GF Score™ is 63/100 with 2 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 Magellanic Cloud (NSE:MCLOUD), the current Interest Coverage is 5.30 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 Magellanic Cloud (NSE:MCLOUD) Overvalued in 2026?
Based on GuruFocus' analysis, Magellanic Cloud stock appears to be undervalued.
The current stock price of ₹27.13 is trading 68% below its estimated GF Value™ of ₹84.68.
GuruFocus considers Magellanic Cloud to be Significantly Undervalued.
Key valuation signals for NSE:MCLOUD:
Interest Coverage: 5.30 (27% below median its 10-year median of 7.31)
GF Value™: ₹84.68 vs. price of ₹27.13 (68% below fair value)
Industry Position: 78.6% below the Software median (#1251 of 1705)
No single metric tells the full story. See the NSE:MCLOUD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Magellanic Cloud Ltd is a provider of IT services. It is engaged in the business of IT solutions, E-Surveillance, and Human Capital. Its main activity includes IT Consulting Services, which develop and design Software Applications, Monitoring Services, and Trading. Its services are Digital Transformation, Product Engineering, Product Development, Quality Assurance, DevOps, Multi-Cloud & DevOps Automation, Process Automation, Data Analytics, and Others. The Company operates in one reportable business segment, namely IT and IT-related Services.
63GF Score
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