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Ambalalrabhai EnterprisesBOM:500009 +0.13%65 Gross Margin % is 39.04% as of Mar. 2026, which is 5% above its 10-year median of 37.09. GuruFocus rates BOM:500009 with a GF Score™ of 65/100 and a GF Value™ of ₹41.72 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 941 Drug Manufacturers companies, Ambalalrabhai Enterprises ranks worse than 63.44% on this metric.
BOM:500009's Gross Margin % is ranked worse than 63.44% of 941
companies
in the Drug Manufacturers industry
Industry Median: 48.54
vs BOM:500009: 41.10
Ambalalrabhai Enterprises had a gross margin of 39.04% for the quarter that ended in Mar. 2026 => Competition eroding margins
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
Ambalalrabhai Enterprises had a gross margin of 39.04% for the quarter that ended in Mar. 2026 => Competition eroding margins
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.
Ambalalrabhai Enterprises Gross Margin % Related Terms
Ambalalrabhai Enterprises Gross Margin % Historical Data
* 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.
BOM:500009 vs ZTS, UTHR: Gross Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Ambalalrabhai Enterprises'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.
Ambalalrabhai Enterprises Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Ambalalrabhai Enterprises's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ambalalrabhai Enterprises'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.
Ambalalrabhai Enterprises (BOM:500009) has a Gross Margin % of 39.04% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Ambalalrabhai Enterprises and its competitors. This is near median its historical median of 37.09. Over the past decade, Ambalalrabhai Enterprises' Gross Margin % has ranged from 36.29 to 41.10. According to the industry distribution chart, Ambalalrabhai Enterprises ranks #597 out of 941 companies in the Drug Manufacturers industry, placing it in the top 63.4%.
Is Ambalalrabhai Enterprises' Gross Margin % too high?
Ambalalrabhai Enterprises' current Gross Margin % of 39.04% is near median its 10-year median of 37.09. Over the past 10 years, this metric has ranged from a low of 36.29 to a high of 41.10. The Drug Manufacturers industry median Gross Margin % is 48.54. Ambalalrabhai Enterprises' value of 39.04% is 19.6% below this industry median. Based on the distribution chart, Ambalalrabhai Enterprises ranks #597 out of 941 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Ambalalrabhai Enterprises has a GF Score™ of 65/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ambalalrabhai Enterprises' Gross Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Ambalalrabhai Enterprises ranks #597 out of 941 companies for Gross Margin %. This places Ambalalrabhai Enterprises in the lower half of its industry. The industry median Gross Margin % is 48.54. Ambalalrabhai Enterprises' value of 39.04% is 19.6% below this benchmark. Historically, Ambalalrabhai Enterprises' own Gross Margin % has ranged from 36.29 to 41.10 over the past decade. While the company's 10-year median is 37.09 vs. the industry median of 48.54, Ambalalrabhai Enterprises has consistently been below 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 Gross Margin % for a Drug Manufacturers company?
The median Gross Margin % among Drug Manufacturers companies is 48.54, based on 941 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ambalalrabhai Enterprises's current Gross Margin % of 39.04% is 19.6% below 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Ambalalrabhai Enterprises and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ambalalrabhai Enterprises's current Gross Margin % is 39.04%, which is near median its own 10-year median of 37.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ambalalrabhai Enterprises stock overvalued right now?
Based on GuruFocus' analysis, Ambalalrabhai Enterprises (BOM:500009) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹41.72, compared to a current price of ₹31.00 — trading 25.7% below its estimated fair value. The current Gross Margin % is 39.04%, which is near median its 10-year median of 37.09 and 19.6% below the Drug Manufacturers industry median of 48.54. Ambalalrabhai Enterprises' overall GF Score™ is 65/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Ambalalrabhai Enterprises (BOM:500009), the current Gross Margin % is 39.04% 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 Ambalalrabhai Enterprises (BOM:500009) Overvalued in 2026?
Based on GuruFocus' analysis, Ambalalrabhai Enterprises stock appears to be undervalued.
The current stock price of ₹31.00 is trading 25.7% below its estimated GF Value™ of ₹41.72.
GuruFocus considers Ambalalrabhai Enterprises to be Modestly Undervalued.
Key valuation signals for BOM:500009:
Gross Margin %: 39.04% (near median its 10-year median of 37.09)
GF Value™: ₹41.72 vs. price of ₹31.00 (25.7% below fair value)
Industry Position: 19.6% below the Drug Manufacturers median (#597 of 941)
No single metric tells the full story. See the BOM:500009 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ambalal Sarabhai Enterprises Ltd is an India-based company engaged in the manufacturing and marketing of Drugs and Formulation. The operating segment of the company is Pharmaceutical Products. It serves domestic as well as International markets.
65GF Score
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