Bihar Sponge IronBOM:500058 -1.54%54 Gross Margin % is 3.17% as of Mar. 2026, which is 64% below its 10-year median of 8.77. GuruFocus rates BOM:500058 with a GF Score™ of 54/100 and a GF Value™ of ₹10.45 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 593 Steel companies, Bihar Sponge Iron ranks worse than 65.43% on this metric.
Bihar Sponge Iron Ltd gross margin has been in long-term decline. The average rate of decline per year is -30.8%.
The historical rank and industry rank for Bihar Sponge Iron's Gross Margin % or its related term are showing as below:
BOM:500058'
s Gross Margin % Range Over the Past 10 Years
Min: -700 Med: 8.77 Max: 42.16
Current: 8.77
During the past 13 years, the highestGross Margin % of Bihar Sponge Iron was 42.16%. The lowest was -700.00%. And the median was 8.77%.
BOM:500058's Gross Margin % is ranked worse than 65.43% of 593
companies
in the Steel industry
Industry Median: 12.6
vs BOM:500058: 8.77
Bihar Sponge Iron had a gross margin of 3.17% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Bihar Sponge Iron was -30.80% per year.
Bihar Sponge Iron (BOM:500058) Gross Margin % Explanation
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
Bihar Sponge Iron had a gross margin of 3.17% for the quarter that ended in Mar. 2026 => No sustainable 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.
Bihar Sponge Iron Gross Margin % Related Terms
Bihar Sponge Iron Gross Margin % Historical Data
* Premium members only.
The historical data trend for Bihar Sponge Iron'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:500058 vs NUE, STLD, RS: Gross Margin % Comparison
For the Steel subindustry, Bihar Sponge Iron'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.
Bihar Sponge Iron Gross Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Bihar Sponge Iron's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Bihar Sponge Iron'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.
Bihar Sponge Iron (BOM:500058) has a Gross Margin % of 3.17% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Bihar Sponge Iron and its competitors. This is 64% below median its historical median of 8.77. According to the industry distribution chart, Bihar Sponge Iron ranks #388 out of 593 companies in the Steel industry, placing it in the top 65.4%.
Is Bihar Sponge Iron's Gross Margin % too high?
Bihar Sponge Iron's current Gross Margin % of 3.17% is 64% below median its 10-year median of 8.77. The Steel industry median Gross Margin % is 12.60. Bihar Sponge Iron's value of 3.17% is 74.8% below this industry median. Based on the distribution chart, Bihar Sponge Iron ranks #388 out of 593 companies in the Steel industry, which is below the industry midpoint. Overall, Bihar Sponge Iron has a GF Score™ of 54/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Bihar Sponge Iron's Gross Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Bihar Sponge Iron ranks #388 out of 593 companies for Gross Margin %. This places Bihar Sponge Iron in the lower half of its industry. The industry median Gross Margin % is 12.60. Bihar Sponge Iron's value of 3.17% is 74.8% below this benchmark. While the company's 10-year median is 8.77 vs. the industry median of 12.60, Bihar Sponge Iron 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 Steel company?
The median Gross Margin % among Steel companies is 12.60, based on 593 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. Bihar Sponge Iron's current Gross Margin % of 3.17% is 74.8% 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 Bihar Sponge Iron and its competitors. For the Steel industry, the median Gross Margin % is 12.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bihar Sponge Iron's current Gross Margin % is 3.17%, which is 64% below median its own 10-year median of 8.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bihar Sponge Iron stock overvalued right now?
Based on GuruFocus' analysis, Bihar Sponge Iron (BOM:500058) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹10.45, compared to a current price of ₹12.77 — trading 22.2% above its estimated fair value. The current Gross Margin % is 3.17%, which is 64% below median its 10-year median of 8.77 and 74.8% below the Steel industry median of 12.60. Bihar Sponge Iron's overall GF Score™ is 54/100 with 5 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 Bihar Sponge Iron (BOM:500058), the current Gross Margin % is 3.17% 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 Bihar Sponge Iron (BOM:500058) Overvalued in 2026?
Based on GuruFocus' analysis, Bihar Sponge Iron stock appears to be overvalued.
The current stock price of ₹12.77 is trading 22.2% above its estimated GF Value™ of ₹10.45.
GuruFocus considers Bihar Sponge Iron to be Modestly Overvalued.
Key valuation signals for BOM:500058:
Gross Margin %: 3.17% (64% below median its 10-year median of 8.77)
GF Value™: ₹10.45 vs. price of ₹12.77 (22.2% above fair value)
Industry Position: 74.8% below the Steel median (#388 of 593)
No single metric tells the full story. See the BOM:500058 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bihar Sponge Iron Ltd is India's first merchant sponge iron plant located in Jharkhand. It produces Direct Reduced Iron, commonly known as sponge iron, using indigenous iron ore and non-coking coal. Its plant uses coal-based rotary kiln technology for sponge iron production, with additional facilities such as crushing, sizing, and magnetic separation for raw materials. The plant is strategically located with excellent connectivity to many cities and transportation infrastructure. Bihar Sponge Iron also operates captive power plants to meet its energy needs efficiently. The company's sponge iron serves as a substitute for scrap in steelmaking electric arc and induction furnaces.
54GF Score
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