Dharani FinanceBOM:511451 +4.98%75 Gross Margin % is 76.03% as of Mar. 2026, which is 12% below its 10-year median of 86.80. GuruFocus rates BOM:511451 with a GF Score™ of 75/100 and a GF Value™ of ₹16.27 (Fairly Valued). The stock has 6 warning signs investors should review. Among 387 Credit Services companies, Dharani Finance ranks better than 88.63% 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
Dharani Finance had a gross margin of 76.03% 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.
Dharani Finance Gross Margin % Related Terms
Dharani Finance Gross Margin % Historical Data
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The historical data trend for Dharani 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:511451 vs V, MA, AXP: Gross Margin % Comparison
For the Credit Services subindustry, Dharani 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.
Dharani Finance Gross Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Dharani Finance's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Dharani 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.
Dharani Finance (BOM:511451) has a Gross Margin % of 76.03% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Dharani Finance and its competitors. This is 12% below median its historical median of 86.80. Over the past decade, Dharani Finance's Gross Margin % has ranged from 56.73 to 89.11. According to the industry distribution chart, Dharani Finance ranks #44 out of 387 companies in the Credit Services industry, placing it in the top 11.4%.
Is Dharani Finance's Gross Margin % too high?
Dharani Finance's current Gross Margin % of 76.03% is 12% below median its 10-year median of 86.80. Over the past 10 years, this metric has ranged from a low of 56.73 to a high of 89.11. The Credit Services industry median Gross Margin % is 51.88. Dharani Finance's value of 76.03% is 46.5% above this industry median. Based on the distribution chart, Dharani Finance ranks #44 out of 387 companies in the Credit Services industry, which is in the top quartile — a strong position relative to peers. Overall, Dharani Finance has a GF Score™ of 75/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Dharani Finance's Gross Margin % compare to V and MA?
According to the Credit Services industry distribution chart, Dharani Finance ranks #44 out of 387 companies for Gross Margin %. This places Dharani Finance in the top 11% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 51.88. Dharani Finance's value of 76.03% is 46.5% above this benchmark. Historically, Dharani Finance's own Gross Margin % has ranged from 56.73 to 89.11 over the past decade. While the company's 10-year median is 86.80 vs. the industry median of 51.88, Dharani Finance 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 Credit Services company?
The median Gross Margin % among Credit Services companies is 51.88, based on 387 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. Dharani Finance's current Gross Margin % of 76.03% is 46.5% 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 Dharani Finance and its competitors. For the Credit Services industry, the median Gross Margin % is 51.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dharani Finance's current Gross Margin % is 76.03%, which is 12% below median its own 10-year median of 86.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dharani Finance stock overvalued right now?
Based on GuruFocus' analysis, Dharani Finance (BOM:511451) is currently considered Fairly Valued. The stock's GF Value™ is ₹16.27, compared to a current price of ₹16.23 — trading 0.2% below its estimated fair value. The current Gross Margin % is 76.03%, which is 12% below median its 10-year median of 86.80 and 46.5% above the Credit Services industry median of 51.88. Dharani Finance's overall GF Score™ is 75/100 with 6 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 Dharani Finance (BOM:511451), the current Gross Margin % is 76.03% 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 Dharani Finance (BOM:511451) Overvalued in 2026?
Based on GuruFocus' analysis, Dharani Finance stock appears to be undervalued.
The current stock price of ₹16.23 is trading 0.2% below its estimated GF Value™ of ₹16.27.
GuruFocus considers Dharani Finance to be Fairly Valued.
Key valuation signals for BOM:511451:
Gross Margin %: 76.03% (12% below median its 10-year median of 86.80)
GF Value™: ₹16.27 vs. price of ₹16.23 (0.2% below fair value)
Industry Position: 46.5% above the Credit Services median (#44 of 387)
No single metric tells the full story. See the BOM:511451 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dharani Finance Ltd is an Indian non-banking financial company (NBFC) engaged in providing financial services such as hire purchase finance, lease finance, and bill discounting. Dharani Finance caters to industrial and commercial enterprises. Company operates in single segment of NBFC activities. The company is also licensed by the Reserve Bank of India for foreign exchange money changing operations and has diversified activities including investment planning, tax consulting, and travel agency services. Majority of its revenue is generated from its core financial services business in hire purchase and leasing.
75GF Score
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