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Muthoot Capital ServicesBOM:511766 -0.78%55 Gross Margin % is 29.66% as of Jun. 2026, which is 38% below its 10-year median of 47.56. GuruFocus rates BOM:511766 with a GF Score™ of 55/100 and a GF Value™ of ₹450.02 (Possible Value Trap). The stock has 9 warning signs investors should review. Among 391 Credit Services companies, Muthoot Capital Services ranks worse than 74.94% on this metric.
Muthoot Capital Services (BOM:511766) 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
Muthoot Capital Services had a gross margin of 29.66% for the quarter that ended in Jun. 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.
Muthoot Capital Services Gross Margin % Related Terms
Muthoot Capital 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:511766 vs V, MA, AXP: Gross Margin % Comparison
For the Credit Services subindustry, Muthoot Capital 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.
Muthoot Capital Services Gross Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Muthoot Capital Services's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Muthoot Capital 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.
Muthoot Capital Services (BOM:511766) has a Gross Margin % of 29.66% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Muthoot Capital Services and its competitors. This is 38% below median its historical median of 47.56. Over the past decade, Muthoot Capital Services' Gross Margin % has ranged from 29.13 to 55.35. According to the industry distribution chart, Muthoot Capital Services ranks #293 out of 391 companies in the Credit Services industry, placing it in the top 74.9%.
Is Muthoot Capital Services' Gross Margin % too high?
Muthoot Capital Services' current Gross Margin % of 29.66% is 38% below median its 10-year median of 47.56. Over the past 10 years, this metric has ranged from a low of 29.13 to a high of 55.35. The Credit Services industry median Gross Margin % is 51.69. Muthoot Capital Services' value of 29.66% is 42.6% below this industry median. Based on the distribution chart, Muthoot Capital Services ranks #293 out of 391 companies in the Credit Services industry, which is below the industry midpoint. Overall, Muthoot Capital Services has a GF Score™ of 55/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Muthoot Capital Services' Gross Margin % compare to V and MA?
According to the Credit Services industry distribution chart, Muthoot Capital Services ranks #293 out of 391 companies for Gross Margin %. This places Muthoot Capital Services in the lower half of its industry. The industry median Gross Margin % is 51.69. Muthoot Capital Services' value of 29.66% is 42.6% below this benchmark. Historically, Muthoot Capital Services' own Gross Margin % has ranged from 29.13 to 55.35 over the past decade. While the company's 10-year median is 47.56 vs. the industry median of 51.69, Muthoot Capital Services 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 51.69, based on 391 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. Muthoot Capital Services's current Gross Margin % of 29.66% is 42.6% 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 Muthoot Capital Services and its competitors. For the Credit Services industry, the median Gross Margin % is 51.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Muthoot Capital Services's current Gross Margin % is 29.66%, which is 38% below median its own 10-year median of 47.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Muthoot Capital Services stock overvalued right now?
Based on GuruFocus' analysis, Muthoot Capital Services (BOM:511766) is currently considered Possible Value Trap. The stock's GF Value™ is ₹450.02, compared to a current price of ₹255.85 — trading 43.1% below its estimated fair value. The current Gross Margin % is 29.66%, which is 38% below median its 10-year median of 47.56 and 42.6% below the Credit Services industry median of 51.69. Muthoot Capital Services' overall GF Score™ is 55/100 with 9 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 Muthoot Capital Services (BOM:511766), the current Gross Margin % is 29.66% as of Jun. 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 Muthoot Capital Services (BOM:511766) Overvalued in 2026?
Based on GuruFocus' analysis, Muthoot Capital Services stock appears to be undervalued.
The current stock price of ₹255.85 is trading 43.1% below its estimated GF Value™ of ₹450.02.
GuruFocus considers Muthoot Capital Services to be Possible Value Trap.
Key valuation signals for BOM:511766:
Gross Margin %: 29.66% (38% below median its 10-year median of 47.56)
GF Value™: ₹450.02 vs. price of ₹255.85 (43.1% below fair value)
Industry Position: 42.6% below the Credit Services median (#293 of 391)
No single metric tells the full story. See the BOM:511766 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Muthoot Capital Services Ltd is an Indian non-banking finance company (NBFC). It offers fund-based financial services to retail, corporate, and institutional customers. The company is engaged in the business of financing for the purchase of automobiles, mainly two-wheelers, used four-wheelers, and commercial vehicles, against hypothecation of the vehicles and granting of personal/ business loans, etc. All of the company's revenue is earned from India. The Company is engaged in the business of financing.
55GF Score
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