Banco Products (India)BOM:500039 +1.40%74 Gross Margin % is 46.70% as of Mar. 2026, which is 13% above its 10-year median of 41.31. GuruFocus rates BOM:500039 with a GF Score™ of 74/100 and a GF Value™ of ₹492.12 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,309 Vehicles & Parts companies, Banco Products (India) ranks better than 91.6% on this metric.
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
Banco Products (India) had a gross margin of 46.70% for the quarter that ended in Mar. 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.
Banco Products (India) Gross Margin % Related Terms
Banco Products (India) Gross Margin % Historical Data
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The historical data trend for Banco Products (India)'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.
BOM:500039 vs ORLY, AZO: Gross Margin % Comparison
For the Auto Parts subindustry, Banco Products (India)'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.
Banco Products (India) Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Banco Products (India)'s Gross Margin % distribution charts can be found below:
* The bar in red indicates where Banco Products (India)'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.
Banco Products (India) (BOM:500039) has a Gross Margin % of 46.70% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Banco Products (India) and its competitors. This is 13% above median its historical median of 41.31. Over the past decade, Banco Products (India)'s Gross Margin % has ranged from 38.82 to 46.29. According to the industry distribution chart, Banco Products (India) ranks #110 out of 1309 companies in the Vehicles & Parts industry, placing it in the top 8.4%.
Is Banco Products (India)'s Gross Margin % too high?
Banco Products (India)'s current Gross Margin % of 46.70% is 13% above median its 10-year median of 41.31. Over the past 10 years, this metric has ranged from a low of 38.82 to a high of 46.29. The Vehicles & Parts industry median Gross Margin % is 19.83. Banco Products (India)'s value of 46.70% is 135.5% above this industry median. Based on the distribution chart, Banco Products (India) ranks #110 out of 1309 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Banco Products (India) has a GF Score™ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Banco Products (India)'s Gross Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Banco Products (India) ranks #110 out of 1309 companies for Gross Margin %. This places Banco Products (India) in the top 8% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 19.83. Banco Products (India)'s value of 46.70% is 135.5% above this benchmark. Historically, Banco Products (India)'s own Gross Margin % has ranged from 38.82 to 46.29 over the past decade. While the company's 10-year median is 41.31 vs. the industry median of 19.83, Banco Products (India) 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 Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.83, based on 1,309 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. Banco Products (India)'s current Gross Margin % of 46.70% is 135.5% 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 Banco Products (India) and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Banco Products (India)'s current Gross Margin % is 46.70%, which is 13% above median its own 10-year median of 41.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Banco Products (India) stock overvalued right now?
Based on GuruFocus' analysis, Banco Products (India) (BOM:500039) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹492.12, compared to a current price of ₹689.25 — trading 40.1% above its estimated fair value. The current Gross Margin % is 46.70%, which is 13% above median its 10-year median of 41.31 and 135.5% above the Vehicles & Parts industry median of 19.83. Banco Products (India)'s overall GF Score™ is 74/100 with 1 warning sign 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 Banco Products (India) (BOM:500039), the current Gross Margin % is 46.70% 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 Banco Products (India) (BOM:500039) Overvalued in 2026?
Based on GuruFocus' analysis, Banco Products (India) stock appears to be overvalued.
The current stock price of ₹689.25 is trading 40.1% above its estimated GF Value™ of ₹492.12.
GuruFocus considers Banco Products (India) to be Significantly Overvalued.
Key valuation signals for BOM:500039:
Gross Margin %: 46.70% (13% above median its 10-year median of 41.31)
GF Value™: ₹492.12 vs. price of ₹689.25 (40.1% above fair value)
Industry Position: 135.5% above the Vehicles & Parts median (#110 of 1309)
No single metric tells the full story. See the BOM:500039 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Banco Products (India) Ltd is a company engaged in the manufacturing and selling of radiators. The company manufactures aluminum radiators and copper-brass radiators. Its products include charged air coolers, fuel coolers, oil coolers, cooling systems, sealing gaskets, joint gaskets and sheets, and rubber products. Banco manufactures and supplies original equipment (OE) for commercial vehicles, passenger vehicles, and industrial products. The company caters to the domestic and international markets. The company generates the majority of its revenue within India.
74GF Score
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