Lakshmi Precision Screws (BOM:506079) Gross Margin %: 53.62% (As of Mar. 2017)

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What is Lakshmi Precision Screws Gross Margin %?

Lakshmi Precision Screws BOM:506079 Gross Margin % is 53.62% as of Mar. 2017.

Gross Margin % is calculated as gross profit divided by its revenue. Lakshmi Precision Screws's Gross Profit for the six months ended in Mar. 2017 was ₹1,372 Mil. Lakshmi Precision Screws's Revenue for the six months ended in Mar. 2017 was ₹2,558 Mil. Therefore, Lakshmi Precision Screws's Gross Margin % for the quarter that ended in Mar. 2017 was 53.62%.


The historical rank and industry rank for Lakshmi Precision Screws's Gross Margin % or its related term are showing as below:


BOM:506079's Gross Margin % is not ranked *
in the Industrial Products industry.
Industry Median: 26.85
* Ranked among companies with meaningful Gross Margin % only.

Lakshmi Precision Screws had a gross margin of 53.62% for the quarter that ended in Mar. 2017 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Lakshmi Precision Screws was 0.00% per year.


Lakshmi Precision Screws  (BOM:506079) 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

Lakshmi Precision Screws had a gross margin of 53.62% for the quarter that ended in Mar. 2017 => 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.


Lakshmi Precision Screws Gross Margin % Related Terms


Lakshmi Precision Screws Gross Margin % Historical Data

* Premium members only.

The historical data trend for Lakshmi Precision Screws'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.

Lakshmi Precision Screws Gross Margin % Chart

Lakshmi Precision Screws Annual Data
Trend Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 58.96 56.65 53.59 51.01 53.62

Lakshmi Precision Screws Semi-Annual Data
Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only 58.96 56.65 53.59 51.01 53.62

BOM:506079 vs TXHG, TBLT: Gross Margin % Comparison

For the Tools & Accessories subindustry, Lakshmi Precision Screws'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.


Lakshmi Precision Screws Gross Margin % vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Lakshmi Precision Screws's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Lakshmi Precision Screws's Gross Margin % falls into.



Lakshmi Precision Screws Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Lakshmi Precision Screws's Gross Margin for the fiscal year that ended in Mar. 2017 is calculated as

Gross Margin % (A: Mar. 2017 )=Gross Profit (A: Mar. 2017 ) / Revenue (A: Mar. 2017 )
=1371.8 / 2558.396
=(Revenue - Cost of Goods Sold) / Revenue
=(2558.396 - 1186.57) / 2558.396
=53.62 %

Lakshmi Precision Screws's Gross Margin for the quarter that ended in Mar. 2017 is calculated as


Gross Margin % (Q: Mar. 2017 )=Gross Profit (Q: Mar. 2017 ) / Revenue (Q: Mar. 2017 )
=1371.8 / 2558.396
=(Revenue - Cost of Goods Sold) / Revenue
=(2558.396 - 1186.57) / 2558.396
=53.62 %

* 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.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 53.62% mean?
Lakshmi Precision Screws (BOM:506079) has a Gross Margin % of 53.62% as of Mar. 2017. Gross margin is the ratio of total gross profit to net sales. View historical data on Lakshmi Precision Screws and its competitors.
Is Lakshmi Precision Screws' Gross Margin % too high?
Lakshmi Precision Screws' current Gross Margin % is 53.62%. The Industrial Products industry median Gross Margin % is 26.85. Lakshmi Precision Screws' value of 53.62% is 99.7% above this industry median.
How does Lakshmi Precision Screws' Gross Margin % compare to TXHG and TBLT?
Lakshmi Precision Screws' Gross Margin % of 53.62% can be compared against companies in the Industrial Products industry. The industry median Gross Margin % is 26.85. Lakshmi Precision Screws' value of 53.62% is 99.7% above this benchmark. 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 26.85, 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. Lakshmi Precision Screws's current Gross Margin % of 53.62% is 99.7% 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 Lakshmi Precision Screws and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lakshmi Precision Screws's current Gross Margin % is 53.62%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lakshmi Precision Screws stock overvalued right now?
Lakshmi Precision Screws (BOM:506079) has a current Gross Margin % of 53.62%. The current Gross Margin % is 53.62% and 99.7% above the Industrial Products industry median of 26.85. 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 Lakshmi Precision Screws (BOM:506079), the current Gross Margin % is 53.62% as of Mar. 2017. 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.

Lakshmi Precision Screws Business Description

Address Hisar Road, 46/1, Mile Stone, Rohtak, HR, IND, 124001
Lakshmi Precision Screws Ltd is engaged in the business of manufacturing high-tensile fasteners. The product portfolio includes - Bolts and Screws, Pins, Nuts, Allen Key, Anchor Bush, Hammer, Wedges, Threaded road, Ball pins, Clevis pins, and many others. The company caters to the need of many sectors like Wind energy, Automotive, Defence, Electronic and communication, Construction, Agriculture, Tool and die, Oil and gas. The company's area of operation comprises four manufacturing units spread across an area of about 1,00,000 sqm.