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
Deepak Fertilisers & Petrochemicals had a gross margin of 27.92% for the quarter that ended in Mar. 2026 => Competition eroding margins
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.
Deepak Fertilisers & Petrochemicals Gross Margin % Related Terms
Deepak Fertilisers & Petrochemicals 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.
For the Chemicals subindustry, Deepak Fertilisers & Petrochemicals'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.
Deepak Fertilisers & Petrochemicals Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Deepak Fertilisers & Petrochemicals's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Deepak Fertilisers & Petrochemicals'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.
Deepak Fertilisers & Petrochemicals (BOM:500645) has a Gross Margin % of 27.92% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Deepak Fertilisers & Petrochemicals and its competitors. This is 19% above median its historical median of 23.53. Over the past decade, Deepak Fertilisers & Petrochemicals' Gross Margin % has ranged from 10.50 to 35.08. According to the industry distribution chart, Deepak Fertilisers & Petrochemicals ranks #528 out of 1557 companies in the Chemicals industry, placing it in the top 33.9%.
Is Deepak Fertilisers & Petrochemicals' Gross Margin % too high?
Deepak Fertilisers & Petrochemicals' current Gross Margin % of 27.92% is 19% above median its 10-year median of 23.53. Over the past 10 years, this metric has ranged from a low of 10.50 to a high of 35.08. The Chemicals industry median Gross Margin % is 23.49. Deepak Fertilisers & Petrochemicals' value of 27.92% is 18.9% above this industry median. Based on the distribution chart, Deepak Fertilisers & Petrochemicals ranks #528 out of 1557 companies in the Chemicals industry, which is above the industry midpoint. Overall, Deepak Fertilisers & Petrochemicals has a GF Score™ of 77/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Deepak Fertilisers & Petrochemicals' Gross Margin % compare to DOW?
According to the Chemicals industry distribution chart, Deepak Fertilisers & Petrochemicals ranks #528 out of 1557 companies for Gross Margin %. This puts Deepak Fertilisers & Petrochemicals in the upper half of its industry. The industry median Gross Margin % is 23.49. Deepak Fertilisers & Petrochemicals' value of 27.92% is 18.9% above this benchmark. Historically, Deepak Fertilisers & Petrochemicals' own Gross Margin % has ranged from 10.50 to 35.08 over the past decade. While the company's 10-year median is 23.53 vs. the industry median of 23.49, Deepak Fertilisers & Petrochemicals 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 Chemicals company?
The median Gross Margin % among Chemicals companies is 23.49, based on 1,557 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. Deepak Fertilisers & Petrochemicals's current Gross Margin % of 27.92% is 18.9% 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 Deepak Fertilisers & Petrochemicals and its competitors. For the Chemicals industry, the median Gross Margin % is 23.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Deepak Fertilisers & Petrochemicals's current Gross Margin % is 27.92%, which is 19% above median its own 10-year median of 23.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Deepak Fertilisers & Petrochemicals stock overvalued right now?
Based on GuruFocus' analysis, Deepak Fertilisers & Petrochemicals (BOM:500645) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹1,304.72, compared to a current price of ₹1,526.30 — trading 17% above its estimated fair value. The current Gross Margin % is 27.92%, which is 19% above median its 10-year median of 23.53 and 18.9% above the Chemicals industry median of 23.49. Deepak Fertilisers & Petrochemicals' overall GF Score™ is 77/100 with 7 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 Deepak Fertilisers & Petrochemicals (BOM:500645), the current Gross Margin % is 27.92% 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 Deepak Fertilisers & Petrochemicals (BOM:500645) Overvalued in 2026?
Based on GuruFocus' analysis, Deepak Fertilisers & Petrochemicals stock appears to be overvalued.
The current stock price of ₹1,526.30 is trading 17% above its estimated GF Value™ of ₹1,304.72.
GuruFocus considers Deepak Fertilisers & Petrochemicals to be Modestly Overvalued.
Key valuation signals for BOM:500645:
Gross Margin %: 27.92% (19% above median its 10-year median of 23.53)
GF Value™: ₹1,304.72 vs. price of ₹1,526.30 (17% above fair value)
Industry Position: 18.9% above the Chemicals median (#528 of 1557)
No single metric tells the full story. See the BOM:500645 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Deepak Fertilisers & Petrochemicals Business Description
Deepak Fertilisers & Petrochemicals Corp Ltd carries on business in fertilizers, agri-services, bulk chemicals, mining chemicals, and value-added real estate. The segments of the company are Chemicals, Fertilizers, Realty, and Others. The majority of its revenue is generated from the Chemicals segment, which includes the manufacturing and trading of mining and industrial chemicals such as nitric acid, iso propyl alcohol, food-grade liquid carbon dioxide, and methanol, among others. The company caters mainly to the needs of the Indian Markets.
77GF Score
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