Rane (Madras)NSE:RML -1.92%68 Interest Coverage is 4.58 as of Mar. 2026, which is 105% above its 10-year median of 2.23. GuruFocus rates NSE:RML with a GF Score™ of 68/100 and a GF Value™ of ₹643.57 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,066 Vehicles & Parts companies, Rane (Madras) ranks worse than 71.01% 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. Rane (Madras)'s
Operating Income
for the
three
months ended in Mar. 2026 was ₹572 Mil. Rane (Madras)'s Interest Expense for the
three
months ended in Mar. 2026 was ₹-125 Mil.
Rane (Madras)'s interest coverage for the quarter that ended in Mar. 2026 was 4.58.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Rane (Madras)'s Interest Coverage or its related term are showing as below:
NSE:RML'
s Interest Coverage Range Over the Past 10 Years
Min: 0.02 Med: 2.23 Max: 3.25
Current: 3.25
NSE:RML's Interest Coverage is ranked worse than 71.01% of 1066
companies
in the Vehicles & Parts industry
Industry Median: 8.295
vs NSE:RML: 3.25
Rane (Madras) (NSE:RML) 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 .
Rane (Madras) Interest Coverage Related Terms
Rane (Madras) Interest Coverage Historical Data
* Premium members only.
The historical data trend for Rane (Madras)'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:RML vs ORLY, AZO: Interest Coverage Comparison
For the Auto Parts subindustry, Rane (Madras)'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.
Rane (Madras) Interest Coverage vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Rane (Madras)'s Interest Coverage distribution charts can be found below:
* The bar in red indicates where Rane (Madras)'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.
Rane (Madras) (NSE:RML) has a Interest Coverage of 4.58 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Rane (Madras) and its competitors. This is 105% above median its historical median of 2.23. Over the past decade, Rane (Madras)'s Interest Coverage has ranged from 0.02 to 3.25. According to the industry distribution chart, Rane (Madras) ranks #757 out of 1066 companies in the Vehicles & Parts industry, placing it in the top 71%.
Is Rane (Madras)'s Interest Coverage too high?
Rane (Madras)'s current Interest Coverage of 4.58 is 105% above median its 10-year median of 2.23. Over the past 10 years, this metric has ranged from a low of 0.02 to a high of 3.25. The Vehicles & Parts industry median Interest Coverage is 8.30. Rane (Madras)'s value of 4.58 is 44.8% below this industry median. Based on the distribution chart, Rane (Madras) ranks #757 out of 1066 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Rane (Madras) has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rane (Madras)'s Interest Coverage compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Rane (Madras) ranks #757 out of 1066 companies for Interest Coverage. This places Rane (Madras) in the lower half of its industry. The industry median Interest Coverage is 8.30. Rane (Madras)'s value of 4.58 is 44.8% below this benchmark. Historically, Rane (Madras)'s own Interest Coverage has ranged from 0.02 to 3.25 over the past decade. While the company's 10-year median is 2.23 vs. the industry median of 8.30, Rane (Madras) 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 Vehicles & Parts company?
The median Interest Coverage among Vehicles & Parts companies is 8.30, based on 1,066 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. Rane (Madras)'s current Interest Coverage of 4.58 is 44.8% 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 Rane (Madras) and its competitors. For the Vehicles & Parts industry, the median Interest Coverage is 8.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rane (Madras)'s current Interest Coverage is 4.58, which is 105% above median its own 10-year median of 2.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rane (Madras) stock overvalued right now?
Based on GuruFocus' analysis, Rane (Madras) (NSE:RML) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹643.57, compared to a current price of ₹1,041.40 — trading 61.8% above its estimated fair value. The current Interest Coverage is 4.58, which is 105% above median its 10-year median of 2.23 and 44.8% below the Vehicles & Parts industry median of 8.30. Rane (Madras)'s overall GF Score™ is 68/100 with 8 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 Rane (Madras) (NSE:RML), the current Interest Coverage is 4.58 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 Rane (Madras) (NSE:RML) Overvalued in 2026?
Based on GuruFocus' analysis, Rane (Madras) stock appears to be overvalued.
The current stock price of ₹1,041.40 is trading 61.8% above its estimated GF Value™ of ₹643.57.
GuruFocus considers Rane (Madras) to be Significantly Overvalued.
Key valuation signals for NSE:RML:
Interest Coverage: 4.58 (105% above median its 10-year median of 2.23)
GF Value™: ₹643.57 vs. price of ₹1,041.40 (61.8% above fair value)
Industry Position: 44.8% below the Vehicles & Parts median (#757 of 1066)
No single metric tells the full story. See the NSE:RML stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rane (Madras) Ltd provides components for the transportation industry. The company is a manufacturer of steering and suspension linkages products, steering gear products and other articles of aluminum die casting products. It operates through two divisions: the Steering and Linkages division and the Light Metal Castings division. The company's steering and linkages division manufactures manual steering gears, hydrostatic steering systems, and steering and suspension linkage products. Its Light Metal Castings division manufactures low-porosity, high-quality aluminum die-castings such as steering housings and engine case covers. Geographically, the company derives key revenue within India.
68GF Score
Get the complete analysis for NSE:RML
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NSE:RML has been successfully added to your 
