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Parnax LabBOM:506128 -1.30%69 Gross Margin % is 37.59% as of Mar. 2026, which is 21% above its 10-year median of 31.06. GuruFocus rates BOM:506128 with a GF Score™ of 69/100 and a GF Value™ of ₹149.14 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 943 Drug Manufacturers companies, Parnax Lab ranks worse than 64.05% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Parnax Lab's Gross Profit for the
three
months ended in Mar. 2026 was ₹262 Mil. Parnax Lab's Revenue for the
three
months ended in Mar. 2026 was ₹696 Mil. Therefore, Parnax Lab's Gross Margin % for the quarter that ended in Mar. 2026 was 37.59%.
The historical rank and industry rank for Parnax Lab's Gross Margin % or its related term are showing as below:
BOM:506128'
s Gross Margin % Range Over the Past 10 Years
Min: 28.54 Med: 31.06 Max: 48.86
Current: 40.82
During the past 13 years, the highestGross Margin % of Parnax Lab was 48.86%. The lowest was 28.54%. And the median was 31.06%.
BOM:506128's Gross Margin % is ranked worse than 64.05% of 943
companies
in the Drug Manufacturers industry
Industry Median: 48.54
vs BOM:506128: 40.82
Parnax Lab had a gross margin of 37.59% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Parnax Lab was 7.60% per year.
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
Parnax Lab had a gross margin of 37.59% 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.
Parnax Lab Gross Margin % Related Terms
Parnax Lab Gross Margin % Historical Data
* Premium members only.
The historical data trend for Parnax Lab'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.
For the Drug Manufacturers - Specialty & Generic subindustry, Parnax Lab'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.
Parnax Lab Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Parnax Lab's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Parnax Lab'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.
Parnax Lab (BOM:506128) has a Gross Margin % of 37.59% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Parnax Lab and its competitors. This is 21% above median its historical median of 31.06. Over the past decade, Parnax Lab's Gross Margin % has ranged from 28.54 to 48.86. According to the industry distribution chart, Parnax Lab ranks #604 out of 943 companies in the Drug Manufacturers industry, placing it in the top 64.1%.
Is Parnax Lab's Gross Margin % too high?
Parnax Lab's current Gross Margin % of 37.59% is 21% above median its 10-year median of 31.06. Over the past 10 years, this metric has ranged from a low of 28.54 to a high of 48.86. The Drug Manufacturers industry median Gross Margin % is 48.54. Parnax Lab's value of 37.59% is 22.6% below this industry median. Based on the distribution chart, Parnax Lab ranks #604 out of 943 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Parnax Lab has a GF Score™ of 69/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Parnax Lab's Gross Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Parnax Lab ranks #604 out of 943 companies for Gross Margin %. This places Parnax Lab in the lower half of its industry. The industry median Gross Margin % is 48.54. Parnax Lab's value of 37.59% is 22.6% below this benchmark. Historically, Parnax Lab's own Gross Margin % has ranged from 28.54 to 48.86 over the past decade. While the company's 10-year median is 31.06 vs. the industry median of 48.54, Parnax Lab 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 Drug Manufacturers company?
The median Gross Margin % among Drug Manufacturers companies is 48.54, based on 943 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. Parnax Lab's current Gross Margin % of 37.59% is 22.6% 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 Parnax Lab and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Parnax Lab's current Gross Margin % is 37.59%, which is 21% above median its own 10-year median of 31.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Parnax Lab stock overvalued right now?
Based on GuruFocus' analysis, Parnax Lab (BOM:506128) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹149.14, compared to a current price of ₹133.25 — trading 10.7% below its estimated fair value. The current Gross Margin % is 37.59%, which is 21% above median its 10-year median of 31.06 and 22.6% below the Drug Manufacturers industry median of 48.54. Parnax Lab's overall GF Score™ is 69/100 with 4 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 Parnax Lab (BOM:506128), the current Gross Margin % is 37.59% 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 Parnax Lab (BOM:506128) Overvalued in 2026?
Based on GuruFocus' analysis, Parnax Lab stock appears to be undervalued.
The current stock price of ₹133.25 is trading 10.7% below its estimated GF Value™ of ₹149.14.
GuruFocus considers Parnax Lab to be Modestly Undervalued.
Key valuation signals for BOM:506128:
Gross Margin %: 37.59% (21% above median its 10-year median of 31.06)
GF Value™: ₹149.14 vs. price of ₹133.25 (10.7% below fair value)
Industry Position: 22.6% below the Drug Manufacturers median (#604 of 943)
No single metric tells the full story. See the BOM:506128 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Address104 - 107, Building No. 8, Gala No. 114, Jogani Industrial Complex, Panchsheel Nagar, Next to Modi Hyundai Service Centre, Chunabhatti, Sion, Mumbai, MH, IND, 400 022
Parnax Lab Ltd is principally engaged in the manufacturing and export of Pharmaceutical Formulations. Its product categories include Pharmaceuticals; Cosmetics; Herbal and Nutraceuticals. The company is developing and delivering Oral Formulations such as Cough Expectorants, Antacids, Anti-Histamines, Multi-Vitamins, Enzyme Preparations, Pediatric Formulations, Special Formulations for Geriatrics, Highly Viscous Products, Suspensions, and others.
69GF Score
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