Pincon Spirit (NSE:PINCON) Interest Coverage: 3.64 (As of Sep. 2017)


What is Pincon Spirit Interest Coverage?

Pincon Spirit NSE:PINCON Interest Coverage is 3.64 as of Sep. 2017.

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. Pincon Spirit's Operating Income for the six months ended in Sep. 2017 was ₹562 Mil. Pincon Spirit's Interest Expense for the six months ended in Sep. 2017 was ₹-154 Mil. Pincon Spirit's interest coverage for the quarter that ended in Sep. 2017 was 3.64. The higher the ratio, the stronger the company's financial strength is.

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


NSE:PINCON's Interest Coverage is not ranked *
in the Beverages - Alcoholic industry.
Industry Median: 8.63
* Ranked among companies with meaningful Interest Coverage only.

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

Pincon Spirit  (NSE:PINCON) 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 .

Pincon Spirit Interest Coverage Related Terms

Pincon Spirit Interest Coverage Historical Data

* Premium members only.

The historical data trend for Pincon Spirit'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.

Pincon Spirit Interest Coverage Chart

Pincon Spirit Annual Data
Trend Mar14 Mar15 Mar16 Mar17
Interest Coverage
9.95 4.67 3.34 3.58

Pincon Spirit Semi-Annual Data
Mar14 Mar15 Mar16 Sep16 Mar17 Sep17
Interest Coverage Get a 7-Day Free Trial N/A N/A 3.30 3.86 3.64

NSE:PINCON vs THST, JCTG, VDKB: Interest Coverage Comparison

For the Beverages - Wineries & Distilleries subindustry, Pincon Spirit'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.

Pincon Spirit Interest Coverage vs Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Pincon Spirit's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Pincon Spirit's Interest Coverage falls into.


Pincon Spirit 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.

Pincon Spirit's Interest Coverage for the fiscal year that ended in Mar. 2017 is calculated as

Here, for the fiscal year that ended in Mar. 2017, Pincon Spirit's Interest Expense was ₹-259 Mil. Its Operating Income was ₹926 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹654 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2017 )/Interest Expense (A: Mar. 2017 )
=-1*925.667/-258.576
=3.58

Pincon Spirit's Interest Coverage for the quarter that ended in Sep. 2017 is calculated as

Here, for the six months ended in Sep. 2017, Pincon Spirit's Interest Expense was ₹-154 Mil. Its Operating Income was ₹562 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹646 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2017 )/Interest Expense (Q: Sep. 2017 )
=-1*561.831/-154.326
=3.64

* 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 3.64 mean?
Pincon Spirit (NSE:PINCON) has a Interest Coverage of 3.64 as of Sep. 2017. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Pincon Spirit and its competitors.
Is Pincon Spirit's Interest Coverage too high?
Pincon Spirit's current Interest Coverage is 3.64. The Beverages - Alcoholic industry median Interest Coverage is 8.63. Pincon Spirit's value of 3.64 is 57.8% below this industry median.
How does Pincon Spirit's Interest Coverage compare to THST and JCTG?
Pincon Spirit's Interest Coverage of 3.64 can be compared against companies in the Beverages - Alcoholic industry. The industry median Interest Coverage is 8.63. Pincon Spirit's value of 3.64 is 57.8% below this benchmark. 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 Beverages - Alcoholic company?
The median Interest Coverage among Beverages - Alcoholic companies is 8.63, based on 159 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. Pincon Spirit's current Interest Coverage of 3.64 is 57.8% 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 Pincon Spirit and its competitors. For the Beverages - Alcoholic industry, the median Interest Coverage is 8.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pincon Spirit's current Interest Coverage is 3.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pincon Spirit stock overvalued right now?
Pincon Spirit (NSE:PINCON) has a current Interest Coverage of 3.64. The current Interest Coverage is 3.64 and 57.8% below the Beverages - Alcoholic industry median of 8.63. 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 Pincon Spirit (NSE:PINCON), the current Interest Coverage is 3.64 as of Sep. 2017. 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.

Pincon Spirit Business Description

Address Number 103, 3rd Floor, Samskruthi Chambers, K.H Road, Shanthi Nagar, Bengaluru, KA, IND, 560027
Pincon Spirit Ltd is engaged in blending, bottling and wholesale distributions of Indian Made Foreign Liquor (IMFL), Indian Made Indian Liquor (IMIL) and refining, packaging and wholesale distributions of fast moving consumer goods. The company derives its revenue from its Indian Made Foreign Liquor (IMFL), Indian Made Indian Liquor (IMIL) segment. The Edible oils business segment is engaged in the manufacture of edible oils and the Company owns a refining and packaging unit.