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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. Muthoot Finance's
Operating Income
for the
three
months ended in Jun. 2026 was ₹39,185 Mil. Muthoot Finance's Interest Expense for the
three
months ended in Jun. 2026 was ₹0 Mil.
did not have earnings to cover the interest expense.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Muthoot Finance's Interest Coverage or its related term are showing as below:
NSE:MUTHOOTFIN's Interest Coverage is not ranked *
in the Credit Services industry.
Industry Median: 50.67 * Ranked among companies with meaningful Interest Coverage only.
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 .
Muthoot Finance Interest Coverage Related Terms
Muthoot Finance Interest Coverage Historical Data
* Premium members only.
The historical data trend for Muthoot Finance'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:MUTHOOTFIN vs V, MA, AXP: Interest Coverage Comparison
For the Credit Services subindustry, Muthoot Finance'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.
Muthoot Finance Interest Coverage vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Muthoot Finance's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Muthoot Finance'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:
GuruFocus does not calculate Muthoot Finance's interest coverage with the available data.
* 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.
What does a Interest Coverage of 0 (At Loss) mean?
Muthoot Finance (NSE:MUTHOOTFIN) has a Interest Coverage of 0 (At Loss) as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Muthoot Finance and its competitors. According to the industry distribution chart, Muthoot Finance ranks #999999 out of 157 companies in the Credit Services industry.
Is Muthoot Finance's Interest Coverage too high?
Muthoot Finance's current Interest Coverage is 0 (At Loss). Based on the distribution chart, Muthoot Finance ranks #999999 out of 157 companies in the Credit Services industry, which is in the bottom quartile relative to peers. Overall, Muthoot Finance has a GF Score™ of 78/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Muthoot Finance's Interest Coverage compare to V and MA?
According to the Credit Services industry distribution chart, Muthoot Finance ranks #999999 out of 157 companies for Interest Coverage. This places Muthoot Finance in the lower half of its industry. The industry median Interest Coverage is 50.67. 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 Credit Services company?
The median Interest Coverage among Credit Services companies is 50.67, based on 157 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. 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 Muthoot Finance and its competitors. For the Credit Services industry, the median Interest Coverage is 50.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Muthoot Finance's current Interest Coverage is 0 (At Loss). However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Muthoot Finance stock overvalued right now?
Based on GuruFocus' analysis, Muthoot Finance (NSE:MUTHOOTFIN) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹3,501.47, compared to a current price of ₹2,841.10 — trading 18.9% below its estimated fair value. The current Interest Coverage is 0 (At Loss). Muthoot Finance's overall GF Score™ is 78/100 with 4 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 Muthoot Finance (NSE:MUTHOOTFIN), the current Interest Coverage is 0 (At Loss) 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 Muthoot Finance (NSE:MUTHOOTFIN) Overvalued in 2026?
Based on GuruFocus' analysis, Muthoot Finance stock appears to be undervalued.
The current stock price of ₹2,841.10 is trading 18.9% below its estimated GF Value™ of ₹3,501.47.
GuruFocus considers Muthoot Finance to be Modestly Undervalued.
Key valuation signals for NSE:MUTHOOTFIN:
Interest Coverage: 0 (At Loss)
GF Value™: ₹3,501.47 vs. price of ₹2,841.10 (18.9% below fair value)
No single metric tells the full story. See the NSE:MUTHOOTFIN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Muthoot Finance Ltd is a non-deposit-taking, non-banking financial company with thousands of branches in India. The company's main business is providing personal and business loans to individuals who do not have access to formal credit. The loans are typically secured by gold jewelry. The company also offers some microfinance loans and housing loans to customer segments and areas that are underserved by banks. Interest income accounts for nearly all the company's revenue. It has operations in Sri Lanka and India, with India providing almost all the company's revenue.
78GF Score
Get the complete analysis for NSE:MUTHOOTFIN
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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