The historical rank and industry rank for Machhar Industries's Gross Margin % or its related term are showing as below:
BOM:543934'
s Gross Margin % Range Over the Past 10 Years
Min: 23.25 Med: 29.66 Max: 33.32
Current: 23.25
During the past 5 years, the highestGross Margin % of Machhar Industries was 33.32%. The lowest was 23.25%. And the median was 29.66%.
BOM:543934's Gross Margin % is ranked better than 53.14% of 1513
companies
in the Chemicals industry
Industry Median: 22.38
vs BOM:543934: 23.25
Machhar Industries had a gross margin of 89.40% for the quarter that ended in Sep. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Machhar Industries was 0.00% per year.
Machhar Industries Gross Margin % Historical Data
The historical data trend for Machhar Industries's Gross Margin % 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.
Competitive Comparison of Machhar Industries's Gross Margin %
For the Specialty Chemicals subindustry, Machhar Industries's Gross Margin %, along with its competitors' market caps and Gross Margin % 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.
Machhar Industries's Gross Margin % Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Machhar Industries's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Machhar Industries's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Machhar Industries had a gross margin of 89.40% for the quarter that ended in Sep. 2023 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Machhar Industries Gross Margin % Related Terms
Thank you for viewing the detailed overview of Machhar Industries's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Machhar Industries (BOM:543934) Business Description
Machhar Industries Ltd operates with three distinct divisions: the explosive division, the transportation division, and Adblue (DEF). The company generates maximum revenue from the Transportation division.
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