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
Sadhana Nitro Chem had a gross margin of -46.21% for the quarter that ended in Mar. 2026 => No sustainable 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.
Sadhana Nitro Chem Gross Margin % Related Terms
Sadhana Nitro Chem Gross Margin % Historical Data
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The historical data trend for Sadhana Nitro Chem'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 Chemicals subindustry, Sadhana Nitro Chem'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.
Sadhana Nitro Chem Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Sadhana Nitro Chem's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sadhana Nitro Chem'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.
Sadhana Nitro Chem (BOM:506642) has a Gross Margin % of -46.21% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Sadhana Nitro Chem and its competitors. According to the industry distribution chart, Sadhana Nitro Chem ranks #1534 out of 1557 companies in the Chemicals industry, placing it in the top 98.5%.
Is Sadhana Nitro Chem's Gross Margin % too high?
Sadhana Nitro Chem's current Gross Margin % is -46.21%. Based on the distribution chart, Sadhana Nitro Chem ranks #1534 out of 1557 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Sadhana Nitro Chem has a GF Score™ of 58/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sadhana Nitro Chem's Gross Margin % compare to DOW?
According to the Chemicals industry distribution chart, Sadhana Nitro Chem ranks #1534 out of 1557 companies for Gross Margin %. This places Sadhana Nitro Chem in the lower half of its industry. The industry median Gross Margin % is 23.49. 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 Chemicals company?
The median Gross Margin % among Chemicals companies is 23.49, based on 1,557 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. 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 Sadhana Nitro Chem and its competitors. For the Chemicals industry, the median Gross Margin % is 23.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sadhana Nitro Chem's current Gross Margin % is -46.21%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sadhana Nitro Chem stock overvalued right now?
Based on GuruFocus' analysis, Sadhana Nitro Chem (BOM:506642) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹1.04, compared to a current price of ₹2.73 — trading 162.5% above its estimated fair value. The current Gross Margin % is -46.21%. Sadhana Nitro Chem's overall GF Score™ is 58/100 with 8 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 Sadhana Nitro Chem (BOM:506642), the current Gross Margin % is -46.21% 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 Sadhana Nitro Chem (BOM:506642) Overvalued in 2026?
Based on GuruFocus' analysis, Sadhana Nitro Chem stock appears to be overvalued.
The current stock price of ₹2.73 is trading 162.5% above its estimated GF Value™ of ₹1.04.
GuruFocus considers Sadhana Nitro Chem to be Significantly Overvalued.
Key valuation signals for BOM:506642:
Gross Margin %: -46.21%
GF Value™: ₹1.04 vs. price of ₹2.73 (162.5% above fair value)
No single metric tells the full story. See the BOM:506642 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sadhana Nitro Chem Ltd is a company that operates in the chemical business. It is engaged in the manufacture of chemical intermediates, heavy organic chemicals, performance chemicals, and wireless network equipment and services. The company offers chemicals like nitrobenzene, metanilic acid, aniline, ortho-aminophenol, ammonium sulphate, dibutyl keto acid, etc. The majority of its revenue is generated from the sale of chemical intermediaries. The group has two reportable segments based on geographical area, i.e., domestic sales, which form a substantial part of its overall revenue, and export sales.
58GF Score
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