
The Red Flag Screener on interest coverage tracks stocks that have high interest payments, and earnings that may not be sufficient to cover these payments. To identify such companies, this screener looks at the interest coverage ratio - the annual earnings before interest, depreciation and taxes, divided by the interest payment that is due annually.
Companies with low "interest coverage" would have earnings below 1.5x of their interest payments. That means a big share of their earnings is going towards payments due. While a lot of finance companies unsurprisingly, fall into this list, other companies include Adani Green Energy, Hathway Cable, India Cements, Coffee Day Enterprises and Future Consumer.