Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Ambalalrabhai EnterprisesBOM:500009 -0.36%57 Gross Margin % is 50.12% as of Jun. 2026, which is 35% above its 10-year median of 37.09. GuruFocus rates BOM:500009 with a GF Score™ of 57/100 and a GF Value™ of ₹42.92 (Fairly Valued). The stock has 7 warning signs investors should review. Among 939 Drug Manufacturers companies, Ambalalrabhai Enterprises ranks worse than 59.42% on this metric.
BOM:500009's Gross Margin % is ranked worse than 59.42% of 939
companies
in the Drug Manufacturers industry
Industry Median: 48.55
vs BOM:500009: 42.78
Ambalalrabhai Enterprises had a gross margin of 50.12% for the quarter that ended in Jun. 2026 => Durable competitive advantage
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 50.12% for the quarter that ended in Jun. 2026 => 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.
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.
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 50.12% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Ambalalrabhai Enterprises and its competitors. This is 35% above median its historical median of 37.09. Over the past decade, Ambalalrabhai Enterprises' Gross Margin % has ranged from 36.29 to 42.78. According to the industry distribution chart, Ambalalrabhai Enterprises ranks #558 out of 939 companies in the Drug Manufacturers industry, placing it in the top 59.4%.
Is Ambalalrabhai Enterprises' Gross Margin % too high?
Ambalalrabhai Enterprises' current Gross Margin % of 50.12% is 35% above 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 42.78. The Drug Manufacturers industry median Gross Margin % is 48.55. Ambalalrabhai Enterprises' value of 50.12% is 3.2% above this industry median. Based on the distribution chart, Ambalalrabhai Enterprises ranks #558 out of 939 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Ambalalrabhai Enterprises has a GF Score™ of 57/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Ambalalrabhai Enterprises' Gross Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Ambalalrabhai Enterprises ranks #558 out of 939 companies for Gross Margin %. This places Ambalalrabhai Enterprises in the lower half of its industry. The industry median Gross Margin % is 48.55. Ambalalrabhai Enterprises' value of 50.12% is 3.2% above this benchmark. Historically, Ambalalrabhai Enterprises' own Gross Margin % has ranged from 36.29 to 42.78 over the past decade. While the company's 10-year median is 37.09 vs. the industry median of 48.55, Ambalalrabhai Enterprises 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 Gross Margin % for a Drug Manufacturers company?
The median Gross Margin % among Drug Manufacturers companies is 48.55, based on 939 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 50.12% is 3.2% 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 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 48.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ambalalrabhai Enterprises's current Gross Margin % is 50.12%, which is 35% above 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 Fairly Valued. The stock's GF Value™ is ₹42.92, compared to a current price of ₹43.72 — trading 1.9% above its estimated fair value. The current Gross Margin % is 50.12%, which is 35% above median its 10-year median of 37.09 and 3.2% above the Drug Manufacturers industry median of 48.55. Ambalalrabhai Enterprises' overall GF Score™ is 57/100 with 7 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 50.12% as of Jun. 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 overvalued.
The current stock price of ₹43.72 is trading 1.9% above its estimated GF Value™ of ₹42.92.
GuruFocus considers Ambalalrabhai Enterprises to be Fairly Valued.
Key valuation signals for BOM:500009:
Gross Margin %: 50.12% (35% above median its 10-year median of 37.09)
GF Value™: ₹42.92 vs. price of ₹43.72 (1.9% above fair value)
Industry Position: 3.2% above the Drug Manufacturers median (#558 of 939)
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.
57GF Score
Get the complete analysis for BOM:500009
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
BOM:500009 has been successfully added to your 
