V B Desai Financial Services (BOM:511110) 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
V B Desai Financial Services had a gross margin of 76.30% 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.
V B Desai Financial Services Gross Margin % Related Terms
V B Desai Financial Services 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.
BOM:511110 vs MS, GS, SCHW: Gross Margin % Comparison
For the Capital Markets subindustry, V B Desai Financial Services'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.
V B Desai Financial Services Gross Margin % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, V B Desai Financial Services's Gross Margin % distribution charts can be found below:
* The bar in red indicates where V B Desai Financial Services'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.
V B Desai Financial Services (BOM:511110) has a Gross Margin % of 76.30% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on V B Desai Financial Services and its competitors. This is near median its historical median of 83.75. Over the past decade, V B Desai Financial Services' Gross Margin % has ranged from 77.93 to 88.86. According to the industry distribution chart, V B Desai Financial Services ranks #118 out of 616 companies in the Capital Markets industry, placing it in the top 19.2%.
Is V B Desai Financial Services' Gross Margin % too high?
V B Desai Financial Services' current Gross Margin % of 76.30% is near median its 10-year median of 83.75. Over the past 10 years, this metric has ranged from a low of 77.93 to a high of 88.86. The Capital Markets industry median Gross Margin % is 49.87. V B Desai Financial Services' value of 76.30% is 53% above this industry median. Based on the distribution chart, V B Desai Financial Services ranks #118 out of 616 companies in the Capital Markets industry, which is in the top quartile — a strong position relative to peers. Overall, V B Desai Financial Services has a GF Score™ of 69/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does V B Desai Financial Services' Gross Margin % compare to MS and GS?
According to the Capital Markets industry distribution chart, V B Desai Financial Services ranks #118 out of 616 companies for Gross Margin %. This places V B Desai Financial Services in the top 19% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 49.87. V B Desai Financial Services' value of 76.30% is 53% above this benchmark. Historically, V B Desai Financial Services' own Gross Margin % has ranged from 77.93 to 88.86 over the past decade. While the company's 10-year median is 83.75 vs. the industry median of 49.87, V B Desai Financial Services 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 Capital Markets company?
The median Gross Margin % among Capital Markets companies is 49.87, based on 616 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. V B Desai Financial Services's current Gross Margin % of 76.30% is 53% 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 V B Desai Financial Services and its competitors. For the Capital Markets industry, the median Gross Margin % is 49.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. V B Desai Financial Services's current Gross Margin % is 76.30%, which is near median its own 10-year median of 83.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is V B Desai Financial Services stock overvalued right now?
Based on GuruFocus' analysis, V B Desai Financial Services (BOM:511110) is currently considered Fairly Valued. The stock's GF Value™ is ₹19.05, compared to a current price of ₹17.50 — trading 8.1% below its estimated fair value. The current Gross Margin % is 76.30%, which is near median its 10-year median of 83.75 and 53% above the Capital Markets industry median of 49.87. V B Desai Financial Services' overall GF Score™ is 69/100 with 3 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 V B Desai Financial Services (BOM:511110), the current Gross Margin % is 76.30% 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 V B Desai Financial Services (BOM:511110) Overvalued in 2026?
Based on GuruFocus' analysis, V B Desai Financial Services stock appears to be undervalued.
The current stock price of ₹17.50 is trading 8.1% below its estimated GF Value™ of ₹19.05.
GuruFocus considers V B Desai Financial Services to be Fairly Valued.
Key valuation signals for BOM:511110:
Gross Margin %: 76.30% (near median its 10-year median of 83.75)
GF Value™: ₹19.05 vs. price of ₹17.50 (8.1% below fair value)
Industry Position: 53% above the Capital Markets median (#118 of 616)
No single metric tells the full story. See the BOM:511110 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
V B Desai Financial Services Ltd is an Indian company providing merchant banking services. The company is engaged in offering financial and advisory services. It provides services like Share Valuation, (Employee Stock Option Plan) ESOP Valuation, ESOP Advisory, merger and acquisition, to act as Manager in Buyback of shares and Acquisition, Takeover of Listed Companies and Initial Public Offerings, etc. The Company has one segment which is Merchant Banking and financial services.
69GF Score
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