Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Banas FinanceBOM:509053 +2.73%71 Gross Margin % is 22.28% as of Mar. 2026, which is 23% above its 10-year median of 18.10. GuruFocus rates BOM:509053 with a GF Score™ of 71/100 and a GF Value™ of ₹9.85 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 390 Credit Services companies, Banas Finance ranks worse than 85.64% on this metric.
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
Banas Finance had a gross margin of 22.28% 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.
Banas Finance Gross Margin % Related Terms
Banas Finance Gross Margin % Historical Data
* Premium members only.
The historical data trend for Banas Finance'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.
BOM:509053 vs V, MA, AXP: Gross Margin % Comparison
For the Credit Services subindustry, Banas Finance'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.
Banas Finance Gross Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Banas Finance's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Banas Finance'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.
Banas Finance (BOM:509053) has a Gross Margin % of 22.28% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Banas Finance and its competitors. This is 23% above median its historical median of 18.10. According to the industry distribution chart, Banas Finance ranks #334 out of 390 companies in the Credit Services industry, placing it in the top 85.6%.
Is Banas Finance's Gross Margin % too high?
Banas Finance's current Gross Margin % of 22.28% is 23% above median its 10-year median of 18.10. The Credit Services industry median Gross Margin % is 51.42. Banas Finance's value of 22.28% is 56.7% below this industry median. Based on the distribution chart, Banas Finance ranks #334 out of 390 companies in the Credit Services industry, which is in the bottom quartile relative to peers. Overall, Banas Finance has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Banas Finance's Gross Margin % compare to V and MA?
According to the Credit Services industry distribution chart, Banas Finance ranks #334 out of 390 companies for Gross Margin %. This places Banas Finance in the lower half of its industry. The industry median Gross Margin % is 51.42. Banas Finance's value of 22.28% is 56.7% below this benchmark. While the company's 10-year median is 18.10 vs. the industry median of 51.42, Banas Finance 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 Credit Services company?
The median Gross Margin % among Credit Services companies is 51.42, based on 390 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. Banas Finance's current Gross Margin % of 22.28% is 56.7% 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 Banas Finance and its competitors. For the Credit Services industry, the median Gross Margin % is 51.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Banas Finance's current Gross Margin % is 22.28%, which is 23% above median its own 10-year median of 18.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Banas Finance stock overvalued right now?
Based on GuruFocus' analysis, Banas Finance (BOM:509053) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹9.85, compared to a current price of ₹7.14 — trading 27.5% below its estimated fair value. The current Gross Margin % is 22.28%, which is 23% above median its 10-year median of 18.10 and 56.7% below the Credit Services industry median of 51.42. Banas Finance's overall GF Score™ is 71/100 with 1 warning sign 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 Banas Finance (BOM:509053), the current Gross Margin % is 22.28% 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 Banas Finance (BOM:509053) Overvalued in 2026?
Based on GuruFocus' analysis, Banas Finance stock appears to be undervalued.
The current stock price of ₹7.14 is trading 27.5% below its estimated GF Value™ of ₹9.85.
GuruFocus considers Banas Finance to be Modestly Undervalued.
Key valuation signals for BOM:509053:
Gross Margin %: 22.28% (23% above median its 10-year median of 18.10)
GF Value™: ₹9.85 vs. price of ₹7.14 (27.5% below fair value)
Industry Position: 56.7% below the Credit Services median (#334 of 390)
No single metric tells the full story. See the BOM:509053 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Banas Finance Ltd is an Indian-based non-banking financial company. The company is engaged in Lending and Securities Trading, and Income from the Commodity/Trading Business. It generates maximum revenue from Interest Income. The Company operates in a single reported segment with the main business of Finance and Share Trading activity. The company operates in India.
71GF Score
Get the complete analysis for BOM:509053
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
BOM:509053 has been successfully added to your 
