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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
Cholamandalam Financial Holdings had a gross margin of 37.06% 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.
Cholamandalam Financial Holdings Gross Margin % Related Terms
Cholamandalam Financial Holdings 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:504973 vs V, MA, AXP: Gross Margin % Comparison
For the Credit Services subindustry, Cholamandalam Financial Holdings'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.
Cholamandalam Financial Holdings Gross Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Cholamandalam Financial Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Cholamandalam Financial Holdings'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.
Cholamandalam Financial Holdings (BOM:504973) has a Gross Margin % of 37.06% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Cholamandalam Financial Holdings and its competitors. This is near median its historical median of 35.86. Over the past decade, Cholamandalam Financial Holdings' Gross Margin % has ranged from 29.89 to 94.71. According to the industry distribution chart, Cholamandalam Financial Holdings ranks #264 out of 388 companies in the Credit Services industry, placing it in the top 68%.
Is Cholamandalam Financial Holdings' Gross Margin % too high?
Cholamandalam Financial Holdings' current Gross Margin % of 37.06% is near median its 10-year median of 35.86. Over the past 10 years, this metric has ranged from a low of 29.89 to a high of 94.71. The Credit Services industry median Gross Margin % is 51.43. Cholamandalam Financial Holdings' value of 37.06% is 27.9% below this industry median. Based on the distribution chart, Cholamandalam Financial Holdings ranks #264 out of 388 companies in the Credit Services industry, which is below the industry midpoint. Overall, Cholamandalam Financial Holdings has a GF Score™ of 74/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cholamandalam Financial Holdings' Gross Margin % compare to V and MA?
According to the Credit Services industry distribution chart, Cholamandalam Financial Holdings ranks #264 out of 388 companies for Gross Margin %. This places Cholamandalam Financial Holdings in the lower half of its industry. The industry median Gross Margin % is 51.43. Cholamandalam Financial Holdings' value of 37.06% is 27.9% below this benchmark. Historically, Cholamandalam Financial Holdings' own Gross Margin % has ranged from 29.89 to 94.71 over the past decade. While the company's 10-year median is 35.86 vs. the industry median of 51.43, Cholamandalam Financial Holdings 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 a Credit Services company?
The median Gross Margin % among Credit Services companies is 51.43, based on 388 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. Cholamandalam Financial Holdings's current Gross Margin % of 37.06% is 27.9% 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 Cholamandalam Financial Holdings and its competitors. For the Credit Services industry, the median Gross Margin % is 51.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cholamandalam Financial Holdings's current Gross Margin % is 37.06%, which is near median its own 10-year median of 35.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cholamandalam Financial Holdings stock overvalued right now?
Based on GuruFocus' analysis, Cholamandalam Financial Holdings (BOM:504973) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹2,097.95, compared to a current price of ₹1,575.35 — trading 24.9% below its estimated fair value. The current Gross Margin % is 37.06%, which is near median its 10-year median of 35.86 and 27.9% below the Credit Services industry median of 51.43. Cholamandalam Financial Holdings' overall GF Score™ is 74/100 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 Cholamandalam Financial Holdings (BOM:504973), the current Gross Margin % is 37.06% 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 Cholamandalam Financial Holdings (BOM:504973) Overvalued in 2026?
Based on GuruFocus' analysis, Cholamandalam Financial Holdings stock appears to be undervalued.
The current stock price of ₹1,575.35 is trading 24.9% below its estimated GF Value™ of ₹2,097.95.
GuruFocus considers Cholamandalam Financial Holdings to be Modestly Undervalued.
Key valuation signals for BOM:504973:
Gross Margin %: 37.06% (near median its 10-year median of 35.86)
GF Value™: ₹2,097.95 vs. price of ₹1,575.35 (24.9% below fair value)
Industry Position: 27.9% below the Credit Services median (#264 of 388)
No single metric tells the full story. See the BOM:504973 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cholamandalam Financial Holdings Business Description
Cholamandalam Financial Holdings Ltd along with its subsidiaries is a diversified investment company under the Murugappa Group. It offers financial services that include general insurance, residential mortgages, auto loans, risk services, and non-banking financial services. The company's activities are located exclusively in India. It has two primary product segments which include the Financial Services segment which derives key revenue and represents its lending business, and the Insurance and allied services segment.
74GF Score
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