Precot (NSE:PRECOT) Interest Coverage: 2.59 (As of Mar. 2026) — 36% Above Median


NSE:PRECOT Precot Ltd NSE:PRECOT
57 GF Score
Price ₹734.65
GF Value ₹461.53
Valuation Significantly Overvalued
! 7 Warning Signs
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What is Precot Interest Coverage?

Precot NSE:PRECOT -1.50% 57 Interest Coverage is 2.59 as of Mar. 2026, which is 36% above its 10-year median of 1.91. GuruFocus rates NSE:PRECOT with a GF Score™ of 57/100 and a GF Value™ of ₹461.53 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 739 Manufacturing - Apparel & Accessories companies, Precot ranks worse than 70.5% 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. Precot's Operating Income for the three months ended in Mar. 2026 was ₹290 Mil. Precot's Interest Expense for the three months ended in Mar. 2026 was ₹-112 Mil. Precot's interest coverage for the quarter that ended in Mar. 2026 was 2.59. The higher the ratio, the stronger the company's financial strength is.

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

NSE:PRECOT' s Interest Coverage Range Over the Past 10 Years
Min: 0.05   Med: 1.91   Max: 6.36
Current: 2.26


NSE:PRECOT's Interest Coverage is ranked worse than
70.5% of 739 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 5.43 vs NSE:PRECOT: 2.26

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


Precot  (NSE:PRECOT) 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 .


Precot Interest Coverage Related Terms


Precot Interest Coverage Historical Data

* Premium members only.

The historical data trend for Precot'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.

Precot Interest Coverage Chart

Precot 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 6.36 0.05 1.76 3.22 2.26

Precot Quarterly Data
Jun21 Sep21 Dec21 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 Premium Member Only 5.65 2.69 1.84 1.88 2.59

Precot Interest Coverage Competitor Comparison

For the Textile Manufacturing subindustry, Precot'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.


Precot Interest Coverage vs Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Precot's Interest Coverage distribution charts can be found below:

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


NSE:PRECOT
57GF Score
Precot Ltd NSE:PRECOT
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Precot 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.

Precot'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, Precot's Interest Expense was ₹-372 Mil. Its Operating Income was ₹840 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹1,315 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2026 )/Interest Expense (A: Mar. 2026 )
=-1*839.921/-372.03
=2.26

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

Here, for the three months ended in Mar. 2026, Precot's Interest Expense was ₹-112 Mil. Its Operating Income was ₹290 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹1,315 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*290.334/-112.134
=2.59

* 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 2.59 mean?
Precot (NSE:PRECOT) has a Interest Coverage of 2.59 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Precot and its competitors. This is 36% above median its historical median of 1.91. Over the past decade, Precot's Interest Coverage has ranged from 0.05 to 6.36. According to the industry distribution chart, Precot ranks #521 out of 739 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 70.5%.
Is Precot's Interest Coverage too high?
Precot's current Interest Coverage of 2.59 is 36% above median its 10-year median of 1.91. Over the past 10 years, this metric has ranged from a low of 0.05 to a high of 6.36. The Manufacturing - Apparel & Accessories industry median Interest Coverage is 5.43. Precot's value of 2.59 is 52.3% below this industry median. Based on the distribution chart, Precot ranks #521 out of 739 companies in the Manufacturing - Apparel & Accessories industry, which is below the industry midpoint. Overall, Precot has a GF Score™ of 57/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Precot's Interest Coverage compare to competitors?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Precot ranks #521 out of 739 companies for Interest Coverage. This places Precot in the lower half of its industry. The industry median Interest Coverage is 5.43. Precot's value of 2.59 is 52.3% below this benchmark. Historically, Precot's own Interest Coverage has ranged from 0.05 to 6.36 over the past decade. While the company's 10-year median is 1.91 vs. the industry median of 5.43, Precot 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 Manufacturing - Apparel & Accessories company?
The median Interest Coverage among Manufacturing - Apparel & Accessories companies is 5.43, based on 739 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. Precot's current Interest Coverage of 2.59 is 52.3% 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 Precot and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Interest Coverage is 5.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Precot's current Interest Coverage is 2.59, which is 36% above median its own 10-year median of 1.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Precot stock overvalued right now?
Based on GuruFocus' analysis, Precot (NSE:PRECOT) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹461.53, compared to a current price of ₹734.65 — trading 59.2% above its estimated fair value. The current Interest Coverage is 2.59, which is 36% above median its 10-year median of 1.91 and 52.3% below the Manufacturing - Apparel & Accessories industry median of 5.43. Precot's overall GF Score™ is 57/100 with 7 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 Precot (NSE:PRECOT), the current Interest Coverage is 2.59 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 Precot (NSE:PRECOT) Overvalued in 2026?

Based on GuruFocus' analysis, Precot stock appears to be overvalued. The current stock price of ₹734.65 is trading 59.2% above its estimated GF Value™ of ₹461.53. GuruFocus considers Precot to be Significantly Overvalued.

Key valuation signals for NSE:PRECOT:

  • Interest Coverage: 2.59 (36% above median its 10-year median of 1.91)
  • GF Value™: ₹461.53 vs. price of ₹734.65 (59.2% above fair value)
  • GF Score™: 57/100 with 7 warning signs
  • Industry Position: 52.3% below the Manufacturing - Apparel & Accessories median (#521 of 739)

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


Precot Business Description

Address Nava India Road, SF No: 559/4, D Block, 4th Floor, Hanudev Info Park, Udaiyampalayam, Coimbatore, TN, IND, 641 028
Precot Ltd operates in the textile business. The products manufactured by the group broadly fall under two categories namely Yarns and Threads; and Health and Hygiene care. Its yarn products include normal, compact, organic, slub, doubled yarn, gassed yarn, open-end yarn, polyester cotton blend yarn and polyester sewing thread. Further, its health and hygiene product line includes cosmetic make up removal pads in different shapes like round, oval, square and rectangle; roll goods in normal and organic cotton, and absorbent cotton in normal and organic. The company operates in India as well as Outside India.
57GF Score

Get the complete analysis for NSE:PRECOT

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

₹734.65
Price
₹461.53
GF Value