Raja Bahadur International (BOM:503127) 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
Raja Bahadur International had a gross margin of 99.62% 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.
Raja Bahadur International Gross Margin % Related Terms
Raja Bahadur International 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:503127 vs CBRE, BEKE, JLL: Gross Margin % Comparison
For the Real Estate Services subindustry, Raja Bahadur International'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.
Raja Bahadur International Gross Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Raja Bahadur International's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Raja Bahadur International'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.
Raja Bahadur International (BOM:503127) has a Gross Margin % of 99.62% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Raja Bahadur International and its competitors. This is 102% above median its historical median of 49.23. According to the industry distribution chart, Raja Bahadur International ranks #18 out of 1645 companies in the Real Estate industry, placing it in the top 1.1%.
Is Raja Bahadur International's Gross Margin % too high?
Raja Bahadur International's current Gross Margin % of 99.62% is 102% above median its 10-year median of 49.23. The Real Estate industry median Gross Margin % is 36.98. Raja Bahadur International's value of 99.62% is 169.4% above this industry median. Based on the distribution chart, Raja Bahadur International ranks #18 out of 1645 companies in the Real Estate industry, which is in the top quartile — a strong position relative to peers. Overall, Raja Bahadur International has a GF Score™ of 55/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Raja Bahadur International's Gross Margin % compare to CBRE and BEKE?
According to the Real Estate industry distribution chart, Raja Bahadur International ranks #18 out of 1645 companies for Gross Margin %. This places Raja Bahadur International in the top 1% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 36.98. Raja Bahadur International's value of 99.62% is 169.4% above this benchmark. While the company's 10-year median is 49.23 vs. the industry median of 36.98, Raja Bahadur International 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 Real Estate company?
The median Gross Margin % among Real Estate companies is 36.98, based on 1,645 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. Raja Bahadur International's current Gross Margin % of 99.62% is 169.4% 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 Raja Bahadur International and its competitors. For the Real Estate industry, the median Gross Margin % is 36.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Raja Bahadur International's current Gross Margin % is 99.62%, which is 102% above median its own 10-year median of 49.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Raja Bahadur International stock overvalued right now?
Based on GuruFocus' analysis, Raja Bahadur International (BOM:503127) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹5,882.84, compared to a current price of ₹5,100.00 — trading 13.3% below its estimated fair value. The current Gross Margin % is 99.62%, which is 102% above median its 10-year median of 49.23 and 169.4% above the Real Estate industry median of 36.98. Raja Bahadur International's overall GF Score™ is 55/100 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 Raja Bahadur International (BOM:503127), the current Gross Margin % is 99.62% 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 Raja Bahadur International (BOM:503127) Overvalued in 2026?
Based on GuruFocus' analysis, Raja Bahadur International stock appears to be undervalued.
The current stock price of ₹5,100.00 is trading 13.3% below its estimated GF Value™ of ₹5,882.84.
GuruFocus considers Raja Bahadur International to be Modestly Undervalued.
Key valuation signals for BOM:503127:
Gross Margin %: 99.62% (102% above median its 10-year median of 49.23)
GF Value™: ₹5,882.84 vs. price of ₹5,100.00 (13.3% below fair value)
Industry Position: 169.4% above the Real Estate median (#18 of 1645)
No single metric tells the full story. See the BOM:503127 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Raja Bahadur International Ltd is engaged in the business of real estate development and construction. It has one operating segment Construction and Real Estate Development.
55GF Score
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