Star CementNSE:STARCEMENT -0.80%88 Interest Coverage is 16.73 as of Mar. 2026, which is 32% below its 10-year median of 24.75. GuruFocus rates NSE:STARCEMENT with a GF Score™ of 88/100 and a GF Value™ of ₹267.31 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 307 Building Materials companies, Star Cement ranks better than 63.84% 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. Star Cement's
Operating Income
for the
three
months ended in Mar. 2026 was ₹2,164 Mil. Star Cement's Interest Expense for the
three
months ended in Mar. 2026 was ₹-129 Mil.
Star Cement's interest coverage for the quarter that ended in Mar. 2026 was 16.73.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Star Cement's Interest Coverage or its related term are showing as below:
NSE:STARCEMENT'
s Interest Coverage Range Over the Past 10 Years
Min: 3.91 Med: 24.75 Max: 46.58
Current: 12.32
NSE:STARCEMENT's Interest Coverage is ranked better than 63.84% of 307
companies
in the Building Materials industry
Industry Median: 6.63
vs NSE:STARCEMENT: 12.32
Star Cement (NSE:STARCEMENT) 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 .
Star Cement Interest Coverage Related Terms
Star Cement Interest Coverage Historical Data
* Premium members only.
The historical data trend for Star Cement'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:STARCEMENT vs CRH, VMC, MLM: Interest Coverage Comparison
For the Building Materials subindustry, Star Cement'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.
Star Cement Interest Coverage vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Star Cement's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Star Cement'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.
Star Cement (NSE:STARCEMENT) has a Interest Coverage of 16.73 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Star Cement and its competitors. This is 32% below median its historical median of 24.75. Over the past decade, Star Cement's Interest Coverage has ranged from 3.91 to 46.58. According to the industry distribution chart, Star Cement ranks #111 out of 307 companies in the Building Materials industry, placing it in the top 36.2%.
Is Star Cement's Interest Coverage too high?
Star Cement's current Interest Coverage of 16.73 is 32% below median its 10-year median of 24.75. Over the past 10 years, this metric has ranged from a low of 3.91 to a high of 46.58. The Building Materials industry median Interest Coverage is 6.63. Star Cement's value of 16.73 is 152.3% above this industry median. Based on the distribution chart, Star Cement ranks #111 out of 307 companies in the Building Materials industry, which is above the industry midpoint. Overall, Star Cement has a GF Score™ of 88/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Star Cement's Interest Coverage compare to CRH and VMC?
According to the Building Materials industry distribution chart, Star Cement ranks #111 out of 307 companies for Interest Coverage. This puts Star Cement in the upper half of its industry. The industry median Interest Coverage is 6.63. Star Cement's value of 16.73 is 152.3% above this benchmark. Historically, Star Cement's own Interest Coverage has ranged from 3.91 to 46.58 over the past decade. While the company's 10-year median is 24.75 vs. the industry median of 6.63, Star Cement 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 Building Materials company?
The median Interest Coverage among Building Materials companies is 6.63, based on 307 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. Star Cement's current Interest Coverage of 16.73 is 152.3% 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 Star Cement and its competitors. For the Building Materials industry, the median Interest Coverage is 6.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Star Cement's current Interest Coverage is 16.73, which is 32% below median its own 10-year median of 24.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Star Cement stock overvalued right now?
Based on GuruFocus' analysis, Star Cement (NSE:STARCEMENT) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹267.31, compared to a current price of ₹210.65 — trading 21.2% below its estimated fair value. The current Interest Coverage is 16.73, which is 32% below median its 10-year median of 24.75 and 152.3% above the Building Materials industry median of 6.63. Star Cement's overall GF Score™ is 88/100 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 Star Cement (NSE:STARCEMENT), the current Interest Coverage is 16.73 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 Star Cement (NSE:STARCEMENT) Overvalued in 2026?
Based on GuruFocus' analysis, Star Cement stock appears to be undervalued.
The current stock price of ₹210.65 is trading 21.2% below its estimated GF Value™ of ₹267.31.
GuruFocus considers Star Cement to be Modestly Undervalued.
Key valuation signals for NSE:STARCEMENT:
Interest Coverage: 16.73 (32% below median its 10-year median of 24.75)
GF Value™: ₹267.31 vs. price of ₹210.65 (21.2% below fair value)
Industry Position: 152.3% above the Building Materials median (#111 of 307)
No single metric tells the full story. See the NSE:STARCEMENT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Star Cement Ltd is a cement company. It offers Cement and Cement linker products. The group markets clinker to different grinding units in North East India and parts of Eastern India. Its product range comprises ordinary Portland cement, Portland pozzolana cement, and Portland slag cement, among others. The company sells its products in India. Geographically, the company generates the majority of its revenue from India.
88GF Score
Get the complete analysis for NSE:STARCEMENT
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:STARCEMENT has been successfully added to your 
