Tainwala Chemical and Plastic (I) (BOM:507785) 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
Tainwala Chemical and Plastic (I) had a gross margin of 74.12% 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.
Tainwala Chemical and Plastic (I) Gross Margin % Related Terms
Tainwala Chemical and Plastic (I) Gross Margin % Historical Data
* 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.
Tainwala Chemical and Plastic (I) Gross Margin % Chart
BOM:507785 vs LIN, SHW, ECL: Gross Margin % Comparison
For the Specialty Chemicals subindustry, Tainwala Chemical and Plastic (I)'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.
Tainwala Chemical and Plastic (I) Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Tainwala Chemical and Plastic (I)'s Gross Margin % distribution charts can be found below:
* The bar in red indicates where Tainwala Chemical and Plastic (I)'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.
Tainwala Chemical and Plastic (I) (BOM:507785) has a Gross Margin % of 74.12% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Tainwala Chemical and Plastic (I) and its competitors. This is 517% above median its historical median of 12.02. Over the past decade, Tainwala Chemical and Plastic (I)'s Gross Margin % has ranged from 5.32 to 24.97. According to the industry distribution chart, Tainwala Chemical and Plastic (I) ranks #723 out of 1556 companies in the Chemicals industry, placing it in the top 46.5%.
Is Tainwala Chemical and Plastic (I)'s Gross Margin % too high?
Tainwala Chemical and Plastic (I)'s current Gross Margin % of 74.12% is 517% above median its 10-year median of 12.02. Over the past 10 years, this metric has ranged from a low of 5.32 to a high of 24.97. The Chemicals industry median Gross Margin % is 23.47. Tainwala Chemical and Plastic (I)'s value of 74.12% is 215.9% above this industry median. Based on the distribution chart, Tainwala Chemical and Plastic (I) ranks #723 out of 1556 companies in the Chemicals industry, which is above the industry midpoint. Overall, Tainwala Chemical and Plastic (I) has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Tainwala Chemical and Plastic (I)'s Gross Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Tainwala Chemical and Plastic (I) ranks #723 out of 1556 companies for Gross Margin %. This puts Tainwala Chemical and Plastic (I) in the upper half of its industry. The industry median Gross Margin % is 23.47. Tainwala Chemical and Plastic (I)'s value of 74.12% is 215.9% above this benchmark. Historically, Tainwala Chemical and Plastic (I)'s own Gross Margin % has ranged from 5.32 to 24.97 over the past decade. While the company's 10-year median is 12.02 vs. the industry median of 23.47, Tainwala Chemical and Plastic (I) 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 Chemicals company?
The median Gross Margin % among Chemicals companies is 23.47, based on 1,556 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. Tainwala Chemical and Plastic (I)'s current Gross Margin % of 74.12% is 215.9% 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 Tainwala Chemical and Plastic (I) and its competitors. For the Chemicals industry, the median Gross Margin % is 23.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tainwala Chemical and Plastic (I)'s current Gross Margin % is 74.12%, which is 517% above median its own 10-year median of 12.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tainwala Chemical and Plastic (I) stock overvalued right now?
Based on GuruFocus' analysis, Tainwala Chemical and Plastic (I) (BOM:507785) is currently considered Fairly Valued. The stock's GF Value™ is ₹205.72, compared to a current price of ₹193.95 — trading 5.7% below its estimated fair value. The current Gross Margin % is 74.12%, which is 517% above median its 10-year median of 12.02 and 215.9% above the Chemicals industry median of 23.47. Tainwala Chemical and Plastic (I)'s overall GF Score™ is 73/100 with 5 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 Tainwala Chemical and Plastic (I) (BOM:507785), the current Gross Margin % is 74.12% 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 Tainwala Chemical and Plastic (I) (BOM:507785) Overvalued in 2026?
Based on GuruFocus' analysis, Tainwala Chemical and Plastic (I) stock appears to be undervalued.
The current stock price of ₹193.95 is trading 5.7% below its estimated GF Value™ of ₹205.72.
GuruFocus considers Tainwala Chemical and Plastic (I) to be Fairly Valued.
Key valuation signals for BOM:507785:
Gross Margin %: 74.12% (517% above median its 10-year median of 12.02)
GF Value™: ₹205.72 vs. price of ₹193.95 (5.7% below fair value)
Industry Position: 215.9% above the Chemicals median (#723 of 1556)
No single metric tells the full story. See the BOM:507785 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tainwala Chemical and Plastic (I) Business Description
Tainwala Chemical and Plastic (I) Ltd is engaged in the business of manufacturing extruded plastic sheets of various polymers like polyvinyl chloride (PVC), polypropylene (PP), PP glass laminated (PPGL), high-density polyethylene (HDPE), and acrylonitrile-butadiene-styrene (ABS). Its other products include Tainclear-PVC Rigid Sheets, Tainflex-PVC Flexible Sheets, Tain PP-Polypropylene Sheets, Tainpack-PVC Foils, and other products. The company operates through two segments: Plastic Sheets and Tradable items.
73GF Score
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