Raj Rayon IndustriesNSE:RAJRILTD +1.93%48 Interest Coverage is 2.36 as of Mar. 2026, which is 30% above its 10-year median of 1.81. GuruFocus rates NSE:RAJRILTD with a GF Score™ of 48/100 and a GF Value™ of ₹37.21 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 739 Manufacturing - Apparel & Accessories companies, Raj Rayon Industries ranks worse than 67.39% 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. Raj Rayon Industries's
Operating Income
for the
three
months ended in Mar. 2026 was ₹113 Mil. Raj Rayon Industries's Interest Expense for the
three
months ended in Mar. 2026 was ₹-48 Mil.
Raj Rayon Industries's interest coverage for the quarter that ended in Mar. 2026 was 2.36.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Raj Rayon Industries's Interest Coverage or its related term are showing as below:
NSE:RAJRILTD'
s Interest Coverage Range Over the Past 10 Years
Min: 1.26 Med: 1.81 Max: 2.53
Current: 2.53
NSE:RAJRILTD's Interest Coverage is ranked worse than 67.39% of 739
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 5.43
vs NSE:RAJRILTD: 2.53
Raj Rayon Industries (NSE:RAJRILTD) 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 .
Raj Rayon Industries Interest Coverage Related Terms
Raj Rayon Industries Interest Coverage Historical Data
* Premium members only.
The historical data trend for Raj Rayon Industries'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.
Raj Rayon Industries Interest Coverage Competitor Comparison
For the Textile Manufacturing subindustry, Raj Rayon Industries'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.
Raj Rayon Industries Interest Coverage vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Raj Rayon Industries's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Raj Rayon Industries's Interest Coverage falls into.
Raj Rayon Industries 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:
* 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.
Raj Rayon Industries (NSE:RAJRILTD) has a Interest Coverage of 2.36 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Raj Rayon Industries and its competitors. This is 30% above median its historical median of 1.81. Over the past decade, Raj Rayon Industries' Interest Coverage has ranged from 1.26 to 2.53. According to the industry distribution chart, Raj Rayon Industries ranks #498 out of 739 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 67.4%.
Is Raj Rayon Industries' Interest Coverage too high?
Raj Rayon Industries' current Interest Coverage of 2.36 is 30% above median its 10-year median of 1.81. Over the past 10 years, this metric has ranged from a low of 1.26 to a high of 2.53. The Manufacturing - Apparel & Accessories industry median Interest Coverage is 5.43. Raj Rayon Industries' value of 2.36 is 56.5% below this industry median. Based on the distribution chart, Raj Rayon Industries ranks #498 out of 739 companies in the Manufacturing - Apparel & Accessories industry, which is below the industry midpoint. Overall, Raj Rayon Industries has a GF Score™ of 48/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Raj Rayon Industries' Interest Coverage compare to competitors?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Raj Rayon Industries ranks #498 out of 739 companies for Interest Coverage. This places Raj Rayon Industries in the lower half of its industry. The industry median Interest Coverage is 5.43. Raj Rayon Industries' value of 2.36 is 56.5% below this benchmark. Historically, Raj Rayon Industries' own Interest Coverage has ranged from 1.26 to 2.53 over the past decade. While the company's 10-year median is 1.81 vs. the industry median of 5.43, Raj Rayon Industries 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. Raj Rayon Industries's current Interest Coverage of 2.36 is 56.5% 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 Raj Rayon Industries 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. Raj Rayon Industries's current Interest Coverage is 2.36, which is 30% above median its own 10-year median of 1.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Raj Rayon Industries stock overvalued right now?
Based on GuruFocus' analysis, Raj Rayon Industries (NSE:RAJRILTD) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹37.21, compared to a current price of ₹24.25 — trading 34.8% below its estimated fair value. The current Interest Coverage is 2.36, which is 30% above median its 10-year median of 1.81 and 56.5% below the Manufacturing - Apparel & Accessories industry median of 5.43. Raj Rayon Industries' overall GF Score™ is 48/100 with 1 warning sign 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 Raj Rayon Industries (NSE:RAJRILTD), the current Interest Coverage is 2.36 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 Raj Rayon Industries (NSE:RAJRILTD) Overvalued in 2026?
Based on GuruFocus' analysis, Raj Rayon Industries stock appears to be undervalued.
The current stock price of ₹24.25 is trading 34.8% below its estimated GF Value™ of ₹37.21.
GuruFocus considers Raj Rayon Industries to be Significantly Undervalued.
Key valuation signals for NSE:RAJRILTD:
Interest Coverage: 2.36 (30% above median its 10-year median of 1.81)
GF Value™: ₹37.21 vs. price of ₹24.25 (34.8% below fair value)
Industry Position: 56.5% below the Manufacturing - Apparel & Accessories median (#498 of 739)
No single metric tells the full story. See the NSE:RAJRILTD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Raj Rayon Industries Ltd is a company that is mainly involved in producing and distributing polyester chips, polyester yarn, and processed yarn. The company operates in a single segment, which is the manufacturing and marketing of synthetic textile yarns.
48GF Score
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