SML MahindraNSE:SMLMAH -1.65%75 Interest Coverage is 11.02 as of Mar. 2026, which is 142% above its 10-year median of 4.55. GuruFocus rates NSE:SMLMAH with a GF Score™ of 75/100 and a GF Value™ of ₹2,407.48 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,067 Vehicles & Parts companies, SML Mahindra ranks better than 57.64% 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. SML Mahindra's
Operating Income
for the
three
months ended in Mar. 2026 was ₹770 Mil. SML Mahindra's Interest Expense for the
three
months ended in Mar. 2026 was ₹-70 Mil.
SML Mahindra's interest coverage for the quarter that ended in Mar. 2026 was 11.02.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for SML Mahindra's Interest Coverage or its related term are showing as below:
NSE:SMLMAH'
s Interest Coverage Range Over the Past 10 Years
Min: 1.86 Med: 4.55 Max: 15.87
Current: 10.91
NSE:SMLMAH's Interest Coverage is ranked better than 57.64% of 1067
companies
in the Vehicles & Parts industry
Industry Median: 8.41
vs NSE:SMLMAH: 10.91
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 .
SML Mahindra Interest Coverage Related Terms
SML Mahindra Interest Coverage Historical Data
* Premium members only.
The historical data trend for SML Mahindra'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:SMLMAH vs TSLA, GM, F: Interest Coverage Comparison
For the Auto Manufacturers subindustry, SML Mahindra'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.
SML Mahindra Interest Coverage vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, SML Mahindra's Interest Coverage distribution charts can be found below:
* The bar in red indicates where SML Mahindra'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.
SML Mahindra (NSE:SMLMAH) has a Interest Coverage of 11.02 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on SML Mahindra and its competitors. This is 142% above median its historical median of 4.55. Over the past decade, SML Mahindra's Interest Coverage has ranged from 1.86 to 15.87. According to the industry distribution chart, SML Mahindra ranks #452 out of 1067 companies in the Vehicles & Parts industry, placing it in the top 42.4%.
Is SML Mahindra's Interest Coverage too high?
SML Mahindra's current Interest Coverage of 11.02 is 142% above median its 10-year median of 4.55. Over the past 10 years, this metric has ranged from a low of 1.86 to a high of 15.87. The Vehicles & Parts industry median Interest Coverage is 8.41. SML Mahindra's value of 11.02 is 31% above this industry median. Based on the distribution chart, SML Mahindra ranks #452 out of 1067 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, SML Mahindra has a GF Score™ of 75/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SML Mahindra's Interest Coverage compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, SML Mahindra ranks #452 out of 1067 companies for Interest Coverage. This puts SML Mahindra in the upper half of its industry. The industry median Interest Coverage is 8.41. SML Mahindra's value of 11.02 is 31% above this benchmark. Historically, SML Mahindra's own Interest Coverage has ranged from 1.86 to 15.87 over the past decade. While the company's 10-year median is 4.55 vs. the industry median of 8.41, SML Mahindra has consistently been above 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 8.41, based on 1,067 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. SML Mahindra's current Interest Coverage of 11.02 is 31% above 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 SML Mahindra and its competitors. For the Vehicles & Parts industry, the median Interest Coverage is 8.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SML Mahindra's current Interest Coverage is 11.02, which is 142% above median its own 10-year median of 4.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SML Mahindra stock overvalued right now?
Based on GuruFocus' analysis, SML Mahindra (NSE:SMLMAH) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹2,407.48, compared to a current price of ₹3,892.30 — trading 61.7% above its estimated fair value. The current Interest Coverage is 11.02, which is 142% above median its 10-year median of 4.55 and 31% above the Vehicles & Parts industry median of 8.41. SML Mahindra's overall GF Score™ is 75/100 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 SML Mahindra (NSE:SMLMAH), the current Interest Coverage is 11.02 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 SML Mahindra (NSE:SMLMAH) Overvalued in 2026?
Based on GuruFocus' analysis, SML Mahindra stock appears to be overvalued.
The current stock price of ₹3,892.30 is trading 61.7% above its estimated GF Value™ of ₹2,407.48.
GuruFocus considers SML Mahindra to be Significantly Overvalued.
Key valuation signals for NSE:SMLMAH:
Interest Coverage: 11.02 (142% above median its 10-year median of 4.55)
GF Value™: ₹2,407.48 vs. price of ₹3,892.30 (61.7% above fair value)
Industry Position: 31% above the Vehicles & Parts median (#452 of 1067)
No single metric tells the full story. See the NSE:SMLMAH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SML Mahindra Ltd, formerly SML Isuzu Ltd is engaged in the business of manufacturing and selling of commercial vehicles including light and medium-duty trucks, buses, ambulances, and specialized vehicles. The company integrates Japanese technology with local manufacturing to offer reliable and cost-effective transportation solutions. Its product portfolio spans cargo trucks and passenger buses with variants that support different industries such as education, tourism, and corporate transport. Revenue is majorly generated through the sale of vehicles and after-sales services including telematics support. The company operates predominantly in India and exports to several countries across Africa and Asia.
75GF Score
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