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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.
Chennai PetroleumBOM:500110 -2.04%71 Gross Margin % is 15.87% as of Mar. 2026, which is 80% above its 10-year median of 8.84. GuruFocus rates BOM:500110 with a GF Score™ of 71/100 and a GF Value™ of ₹769.43 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 869 Oil & Gas companies, Chennai Petroleum ranks worse than 77.1% on this metric.
Chennai Petroleum Corp Ltd gross margin has been in long-term decline. The average rate of decline per year is -8.9%.
The historical rank and industry rank for Chennai Petroleum's Gross Margin % or its related term are showing as below:
BOM:500110'
s Gross Margin % Range Over the Past 10 Years
Min: -3.28 Med: 8.84 Max: 12.28
Current: 10.59
During the past 13 years, the highestGross Margin % of Chennai Petroleum was 12.28%. The lowest was -3.28%. And the median was 8.84%.
BOM:500110's Gross Margin % is ranked worse than 77.1% of 869
companies
in the Oil & Gas industry
Industry Median: 25.78
vs BOM:500110: 10.59
Chennai Petroleum had a gross margin of 15.87% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Chennai Petroleum was -8.90% per year.
Chennai Petroleum (BOM:500110) 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
Chennai Petroleum had a gross margin of 15.87% 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.
Chennai Petroleum Gross Margin % Related Terms
Chennai Petroleum Gross Margin % Historical Data
* Premium members only.
The historical data trend for Chennai Petroleum'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:500110 vs VLO, MPC, PSX: Gross Margin % Comparison
For the Oil & Gas Refining & Marketing subindustry, Chennai Petroleum'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.
Chennai Petroleum Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Chennai Petroleum's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Chennai Petroleum'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.
Chennai Petroleum (BOM:500110) has a Gross Margin % of 15.87% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Chennai Petroleum and its competitors. This is 80% above median its historical median of 8.84. According to the industry distribution chart, Chennai Petroleum ranks #670 out of 869 companies in the Oil & Gas industry, placing it in the top 77.1%.
Is Chennai Petroleum's Gross Margin % too high?
Chennai Petroleum's current Gross Margin % of 15.87% is 80% above median its 10-year median of 8.84. The Oil & Gas industry median Gross Margin % is 25.78. Chennai Petroleum's value of 15.87% is 38.4% below this industry median. Based on the distribution chart, Chennai Petroleum ranks #670 out of 869 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers. Overall, Chennai Petroleum has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Chennai Petroleum's Gross Margin % compare to VLO and MPC?
According to the Oil & Gas industry distribution chart, Chennai Petroleum ranks #670 out of 869 companies for Gross Margin %. This places Chennai Petroleum in the lower half of its industry. The industry median Gross Margin % is 25.78. Chennai Petroleum's value of 15.87% is 38.4% below this benchmark. While the company's 10-year median is 8.84 vs. the industry median of 25.78, Chennai Petroleum 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 an Oil & Gas company?
The median Gross Margin % among Oil & Gas companies is 25.78, based on 869 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. Chennai Petroleum's current Gross Margin % of 15.87% is 38.4% 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 Chennai Petroleum and its competitors. For the Oil & Gas industry, the median Gross Margin % is 25.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chennai Petroleum's current Gross Margin % is 15.87%, which is 80% above median its own 10-year median of 8.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chennai Petroleum stock overvalued right now?
Based on GuruFocus' analysis, Chennai Petroleum (BOM:500110) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹769.43, compared to a current price of ₹1,157.65 — trading 50.5% above its estimated fair value. The current Gross Margin % is 15.87%, which is 80% above median its 10-year median of 8.84 and 38.4% below the Oil & Gas industry median of 25.78. Chennai Petroleum's overall GF Score™ is 71/100 with 6 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 Chennai Petroleum (BOM:500110), the current Gross Margin % is 15.87% 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 Chennai Petroleum (BOM:500110) Overvalued in 2026?
Based on GuruFocus' analysis, Chennai Petroleum stock appears to be overvalued.
The current stock price of ₹1,157.65 is trading 50.5% above its estimated GF Value™ of ₹769.43.
GuruFocus considers Chennai Petroleum to be Significantly Overvalued.
Key valuation signals for BOM:500110:
Gross Margin %: 15.87% (80% above median its 10-year median of 8.84)
GF Value™: ₹769.43 vs. price of ₹1,157.65 (50.5% above fair value)
Industry Position: 38.4% below the Oil & Gas median (#670 of 869)
No single metric tells the full story. See the BOM:500110 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chennai Petroleum Corp Ltd manufactures and supplies petrol products in India. The Manali refinery of the company in India produces fuel, wax, lube, and petrochemical feedstock. The company also has a wax plant that produces paraffin wax for the manufacturing of candle wax, waterproof formulations, and match wax. The company's main products include liquefied petroleum gas, motor spirit, superior kerosene oil, high-speed diesel, fuel oil, hexane, and petrochemical feedstocks. A large majority of sales are derived from petroleum products.
71GF Score
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