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Fermenta BiotechBOM:506414 +7.25%65 Gross Margin % is 65.68% as of Mar. 2026, which is 8% above its 10-year median of 60.69. GuruFocus rates BOM:506414 with a GF Score™ of 65/100 and a GF Value™ of ₹321.75 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 943 Drug Manufacturers companies, Fermenta Biotech ranks better than 75.19% on this metric.
The historical rank and industry rank for Fermenta Biotech's Gross Margin % or its related term are showing as below:
BOM:506414'
s Gross Margin % Range Over the Past 10 Years
Min: 53.07 Med: 60.69 Max: 74.47
Current: 64.42
During the past 13 years, the highestGross Margin % of Fermenta Biotech was 74.47%. The lowest was 53.07%. And the median was 60.69%.
BOM:506414's Gross Margin % is ranked better than 75.19% of 943
companies
in the Drug Manufacturers industry
Industry Median: 48.54
vs BOM:506414: 64.42
Fermenta Biotech had a gross margin of 65.68% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Fermenta Biotech was 0.50% 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
Fermenta Biotech had a gross margin of 65.68% 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.
Fermenta Biotech Gross Margin % Related Terms
Fermenta Biotech Gross Margin % Historical Data
* Premium members only.
The historical data trend for Fermenta Biotech'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, Fermenta Biotech'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.
Fermenta Biotech Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Fermenta Biotech's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Fermenta Biotech'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.
Fermenta Biotech (BOM:506414) has a Gross Margin % of 65.68% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Fermenta Biotech and its competitors. This is near median its historical median of 60.69. Over the past decade, Fermenta Biotech's Gross Margin % has ranged from 53.07 to 74.47. According to the industry distribution chart, Fermenta Biotech ranks #234 out of 943 companies in the Drug Manufacturers industry, placing it in the top 24.8%.
Is Fermenta Biotech's Gross Margin % too high?
Fermenta Biotech's current Gross Margin % of 65.68% is near median its 10-year median of 60.69. Over the past 10 years, this metric has ranged from a low of 53.07 to a high of 74.47. The Drug Manufacturers industry median Gross Margin % is 48.54. Fermenta Biotech's value of 65.68% is 35.3% above this industry median. Based on the distribution chart, Fermenta Biotech ranks #234 out of 943 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Fermenta Biotech has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Fermenta Biotech's Gross Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Fermenta Biotech ranks #234 out of 943 companies for Gross Margin %. This places Fermenta Biotech in the top 25% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 48.54. Fermenta Biotech's value of 65.68% is 35.3% above this benchmark. Historically, Fermenta Biotech's own Gross Margin % has ranged from 53.07 to 74.47 over the past decade. While the company's 10-year median is 60.69 vs. the industry median of 48.54, Fermenta Biotech 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 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. Fermenta Biotech's current Gross Margin % of 65.68% is 35.3% 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 Fermenta Biotech 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. Fermenta Biotech's current Gross Margin % is 65.68%, which is near median its own 10-year median of 60.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fermenta Biotech stock overvalued right now?
Based on GuruFocus' analysis, Fermenta Biotech (BOM:506414) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹321.75, compared to a current price of ₹499.30 — trading 55.2% above its estimated fair value. The current Gross Margin % is 65.68%, which is near median its 10-year median of 60.69 and 35.3% above the Drug Manufacturers industry median of 48.54. Fermenta Biotech's overall GF Score™ is 65/100 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 Fermenta Biotech (BOM:506414), the current Gross Margin % is 65.68% 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 Fermenta Biotech (BOM:506414) Overvalued in 2026?
Based on GuruFocus' analysis, Fermenta Biotech stock appears to be overvalued.
The current stock price of ₹499.30 is trading 55.2% above its estimated GF Value™ of ₹321.75.
GuruFocus considers Fermenta Biotech to be Significantly Overvalued.
Key valuation signals for BOM:506414:
Gross Margin %: 65.68% (near median its 10-year median of 60.69)
GF Value™: ₹321.75 vs. price of ₹499.30 (55.2% above fair value)
Industry Position: 35.3% above the Drug Manufacturers median (#234 of 943)
No single metric tells the full story. See the BOM:506414 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fermenta Biotech Ltd is engaged in the business of manufacturing and marketing chemicals, bulk drugs, enzymes, pharmaceutical formulations, and environmental solution products and renting and selling properties. It is a manufacturer and supplier of Vitamin D and also supplies Penicillin G Amidase, CAL B Lipase, Polymer Supports, and enzyme technologies. The company operates in two segments namely Property and Bulk Drugs/Chemicals. The majority of the revenue comes from the Bulk Drug/Chemicals segment. Geographically, it caters to both domestic and international markets and generates maximum revenue from the Indian market.
65GF Score
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