Net interest cover can be calculated by dividing earnings before interest and tax (EBIT) by the company's net interest expense. Larsen & Toubro has EBIT of 8.91 times its interest expense, which we think is adequate. Despite a decent level of interest cover, we think that shareholders should remain cautious of the high level of net debt. Rising rates or tighter debt markets have a nasty habit of making fools of highly-indebted dividend stocks.