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Hindustan Oil Exploration Co (BOM:500186) 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
Hindustan Oil Exploration Co had a gross margin of -18.66% 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.
Hindustan Oil Exploration Co Gross Margin % Related Terms
Hindustan Oil Exploration Co 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.
BOM:500186 vs COP, EOG, FANG: Gross Margin % Comparison
For the Oil & Gas E&P subindustry, Hindustan Oil Exploration Co'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.
Hindustan Oil Exploration Co Gross Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Hindustan Oil Exploration Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hindustan Oil Exploration Co'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.
Hindustan Oil Exploration Co (BOM:500186) has a Gross Margin % of -18.66% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Hindustan Oil Exploration Co and its competitors. Over the past decade, Hindustan Oil Exploration Co's Gross Margin % has ranged from 17.87 to 65.17. According to the industry distribution chart, Hindustan Oil Exploration Co ranks #365 out of 869 companies in the Oil & Gas industry, placing it in the top 42%.
Is Hindustan Oil Exploration Co's Gross Margin % too high?
Hindustan Oil Exploration Co's current Gross Margin % is -18.66%. Over the past 10 years, this metric has ranged from a low of 17.87 to a high of 65.17. Based on the distribution chart, Hindustan Oil Exploration Co ranks #365 out of 869 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, Hindustan Oil Exploration Co has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hindustan Oil Exploration Co's Gross Margin % compare to COP and EOG?
According to the Oil & Gas industry distribution chart, Hindustan Oil Exploration Co ranks #365 out of 869 companies for Gross Margin %. This puts Hindustan Oil Exploration Co in the upper half of its industry. The industry median Gross Margin % is 25.78. Historically, Hindustan Oil Exploration Co's own Gross Margin % has ranged from 17.87 to 65.17 over the past decade. 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. 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 Hindustan Oil Exploration Co 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. Hindustan Oil Exploration Co's current Gross Margin % is -18.66%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hindustan Oil Exploration Co stock overvalued right now?
Based on GuruFocus' analysis, Hindustan Oil Exploration Co (BOM:500186) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹72.30, compared to a current price of ₹154.25 — trading 113.3% above its estimated fair value. The current Gross Margin % is -18.66%. Hindustan Oil Exploration Co's overall GF Score™ is 69/100 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 Hindustan Oil Exploration Co (BOM:500186), the current Gross Margin % is -18.66% 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 Hindustan Oil Exploration Co (BOM:500186) Overvalued in 2026?
Based on GuruFocus' analysis, Hindustan Oil Exploration Co stock appears to be overvalued.
The current stock price of ₹154.25 is trading 113.3% above its estimated GF Value™ of ₹72.30.
GuruFocus considers Hindustan Oil Exploration Co to be Significantly Overvalued.
Key valuation signals for BOM:500186:
Gross Margin %: -18.66%
GF Value™: ₹72.30 vs. price of ₹154.25 (113.3% above fair value)
No single metric tells the full story. See the BOM:500186 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hindustan Oil Exploration Co Ltd is engaged in the exploration, development, and production of crude oil and natural gas in India. Its business falls under the reportable segment of Oil and Gas. The group derives revenue from the sale of its products which includes Crude oil, Condensate and Natural gas. Key revenue is derived from the sale of natural gas. Geographically, the group's operations are principally carried in India.
69GF Score
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