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Godfrey Phillips IndiaBOM:500163 -0.03%83 Gross Margin % is 50.62% as of Mar. 2026, which is 5% above its 10-year median of 48.20. GuruFocus rates BOM:500163 with a GF Score™ of 83/100 and a GF Value™ of ₹2,383.81 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 47 Tobacco Products companies, Godfrey Phillips India ranks better than 61.7% on this metric.
BOM:500163's Gross Margin % is ranked better than 61.7% of 47
companies
in the Tobacco Products industry
Industry Median: 33.29
vs BOM:500163: 44.24
Godfrey Phillips India had a gross margin of 50.62% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Godfrey Phillips India was -4.10% per year.
Godfrey Phillips India (BOM:500163) 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
Godfrey Phillips India had a gross margin of 50.62% 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.
Godfrey Phillips India Gross Margin % Related Terms
Godfrey Phillips India Gross Margin % Historical Data
* Premium members only.
The historical data trend for Godfrey Phillips 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:500163 vs PM, MO, TPB: Gross Margin % Comparison
For the Tobacco subindustry, Godfrey Phillips 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.
Godfrey Phillips India Gross Margin % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Godfrey Phillips India's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Godfrey Phillips 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.
Godfrey Phillips India (BOM:500163) has a Gross Margin % of 50.62% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Godfrey Phillips India and its competitors. This is near median its historical median of 48.20. Over the past decade, Godfrey Phillips India's Gross Margin % has ranged from 41.69 to 55.86. According to the industry distribution chart, Godfrey Phillips India ranks #18 out of 47 companies in the Tobacco Products industry, placing it in the top 38.3%.
Is Godfrey Phillips India's Gross Margin % too high?
Godfrey Phillips India's current Gross Margin % of 50.62% is near median its 10-year median of 48.20. Over the past 10 years, this metric has ranged from a low of 41.69 to a high of 55.86. The Tobacco Products industry median Gross Margin % is 33.29. Godfrey Phillips India's value of 50.62% is 52.1% above this industry median. Based on the distribution chart, Godfrey Phillips India ranks #18 out of 47 companies in the Tobacco Products industry, which is above the industry midpoint. Overall, Godfrey Phillips India has a GF Score™ of 83/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Godfrey Phillips India's Gross Margin % compare to PM and MO?
According to the Tobacco Products industry distribution chart, Godfrey Phillips India ranks #18 out of 47 companies for Gross Margin %. This puts Godfrey Phillips India in the upper half of its industry. The industry median Gross Margin % is 33.29. Godfrey Phillips India's value of 50.62% is 52.1% above this benchmark. Historically, Godfrey Phillips India's own Gross Margin % has ranged from 41.69 to 55.86 over the past decade. While the company's 10-year median is 48.20 vs. the industry median of 33.29, Godfrey Phillips 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 Tobacco Products company?
The median Gross Margin % among Tobacco Products companies is 33.29, based on 47 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. Godfrey Phillips India's current Gross Margin % of 50.62% is 52.1% 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 Godfrey Phillips India and its competitors. For the Tobacco Products industry, the median Gross Margin % is 33.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Godfrey Phillips India's current Gross Margin % is 50.62%, which is near median its own 10-year median of 48.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Godfrey Phillips India stock overvalued right now?
Based on GuruFocus' analysis, Godfrey Phillips India (BOM:500163) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹2,383.81, compared to a current price of ₹2,132.35 — trading 10.5% below its estimated fair value. The current Gross Margin % is 50.62%, which is near median its 10-year median of 48.20 and 52.1% above the Tobacco Products industry median of 33.29. Godfrey Phillips India's overall GF Score™ is 83/100 with 2 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 Godfrey Phillips India (BOM:500163), the current Gross Margin % is 50.62% 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 Godfrey Phillips India (BOM:500163) Overvalued in 2026?
Based on GuruFocus' analysis, Godfrey Phillips India stock appears to be undervalued.
The current stock price of ₹2,132.35 is trading 10.5% below its estimated GF Value™ of ₹2,383.81.
GuruFocus considers Godfrey Phillips India to be Modestly Undervalued.
Key valuation signals for BOM:500163:
Gross Margin %: 50.62% (near median its 10-year median of 48.20)
GF Value™: ₹2,383.81 vs. price of ₹2,132.35 (10.5% below fair value)
Industry Position: 52.1% above the Tobacco Products median (#18 of 47)
No single metric tells the full story. See the BOM:500163 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Godfrey Phillips India Ltd is a cigarette manufacturer that sells its products globally under brand names including Four Square, Red & White, Cavanders, Jaisalmer, Stellar, and Marlboro which it has a license to sell in India. Cigarette sales account for the vast majority of the total revenue, although the company also sells tea and other retail products. The company operates through three reportable segments: Cigarette, Tobacco, and Related Products and Related Products; and Others. The majority of the Godfrey Phillips sales are generated in India, but the company exports some of its cigarette brands and cuts tobacco.
83GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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