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Kennametal IndiaBOM:505890 -0.20%90 Gross Margin % is 46.34% as of Mar. 2026, which is 6% above its 10-year median of 43.70. GuruFocus rates BOM:505890 with a GF Score™ of 90/100 and a GF Value™ of ₹2,873.59 (Fairly Valued). The stock has 1 warning sign investors should review. Among 2,999 Industrial Products companies, Kennametal India ranks better than 82.16% on this metric.
The historical rank and industry rank for Kennametal India's Gross Margin % or its related term are showing as below:
BOM:505890'
s Gross Margin % Range Over the Past 10 Years
Min: 41.85 Med: 43.7 Max: 46.62
Current: 42.74
During the past 13 years, the highestGross Margin % of Kennametal India was 46.62%. The lowest was 41.85%. And the median was 43.70%.
BOM:505890's Gross Margin % is ranked better than 82.16% of 2999
companies
in the Industrial Products industry
Industry Median: 26.81
vs BOM:505890: 42.74
Kennametal India had a gross margin of 46.34% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Kennametal India was -0.20% per year.
Kennametal India (BOM:505890) 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
Kennametal India had a gross margin of 46.34% 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.
Kennametal India Gross Margin % Related Terms
Kennametal India Gross Margin % Historical Data
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The historical data trend for Kennametal 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:505890 vs SNA, RBC, SWK: Gross Margin % Comparison
For the Tools & Accessories subindustry, Kennametal 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.
Kennametal India Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Kennametal India's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Kennametal 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.
Kennametal India (BOM:505890) has a Gross Margin % of 46.34% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Kennametal India and its competitors. This is near median its historical median of 43.70. Over the past decade, Kennametal India's Gross Margin % has ranged from 41.85 to 46.62. According to the industry distribution chart, Kennametal India ranks #535 out of 2999 companies in the Industrial Products industry, placing it in the top 17.8%.
Is Kennametal India's Gross Margin % too high?
Kennametal India's current Gross Margin % of 46.34% is near median its 10-year median of 43.70. Over the past 10 years, this metric has ranged from a low of 41.85 to a high of 46.62. The Industrial Products industry median Gross Margin % is 26.81. Kennametal India's value of 46.34% is 72.8% above this industry median. Based on the distribution chart, Kennametal India ranks #535 out of 2999 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Kennametal India has a GF Score™ of 90/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Kennametal India's Gross Margin % compare to SNA and RBC?
According to the Industrial Products industry distribution chart, Kennametal India ranks #535 out of 2999 companies for Gross Margin %. This places Kennametal India in the top 18% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 26.81. Kennametal India's value of 46.34% is 72.8% above this benchmark. Historically, Kennametal India's own Gross Margin % has ranged from 41.85 to 46.62 over the past decade. While the company's 10-year median is 43.70 vs. the industry median of 26.81, Kennametal 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.81, based on 2,999 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. Kennametal India's current Gross Margin % of 46.34% is 72.8% 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 Kennametal India and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kennametal India's current Gross Margin % is 46.34%, which is near median its own 10-year median of 43.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kennametal India stock overvalued right now?
Based on GuruFocus' analysis, Kennametal India (BOM:505890) is currently considered Fairly Valued. The stock's GF Value™ is ₹2,873.59, compared to a current price of ₹2,880.10 — trading 0.2% above its estimated fair value. The current Gross Margin % is 46.34%, which is near median its 10-year median of 43.70 and 72.8% above the Industrial Products industry median of 26.81. Kennametal India's overall GF Score™ is 90/100 with 1 warning sign 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 Kennametal India (BOM:505890), the current Gross Margin % is 46.34% 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 Kennametal India (BOM:505890) Overvalued in 2026?
Based on GuruFocus' analysis, Kennametal India stock appears to be overvalued.
The current stock price of ₹2,880.10 is trading 0.2% above its estimated GF Value™ of ₹2,873.59.
GuruFocus considers Kennametal India to be Fairly Valued.
Key valuation signals for BOM:505890:
Gross Margin %: 46.34% (near median its 10-year median of 43.70)
GF Value™: ₹2,873.59 vs. price of ₹2,880.10 (0.2% above fair value)
Industry Position: 72.8% above the Industrial Products median (#535 of 2999)
No single metric tells the full story. See the BOM:505890 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kennametal India Ltd is engaged in the manufacturing and trading of hard metal products and machine tools, also known as machining solutions, serving both domestic and international markets. It operates through two main segments, the Machining Solutions Group and Hard Metal Products. The Machining Solutions Group's sales include machines, fixtures, spare parts, and after-sales services. The Hard Metal Products segment is the key revenue driver, offering metal cutting tools, tooling systems, and wear-resistant components for various industries such as automotive, aerospace, energy, and engineering. The company's operations are mainly based in India, with a presence in Germany, the USA, and China, and the majority of its revenue comes from India.
90GF 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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