Vama IndustriesBOM:512175 +6.41%70 Gross Margin % is 6.34% as of Mar. 2026, which is 57% below its 10-year median of 14.81. GuruFocus rates BOM:512175 with a GF Score™ of 70/100 and a GF Value™ of ₹4.98 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 2,685 Software companies, Vama Industries ranks worse than 96.54% 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
Vama Industries had a gross margin of 6.34% for the quarter that ended in Mar. 2026 => No sustainable 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.
Vama Industries Gross Margin % Related Terms
Vama Industries Gross Margin % Historical Data
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The historical data trend for Vama Industries'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:512175 vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, Vama Industries'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.
Vama Industries Gross Margin % vs Software Industry
For the Software industry and Technology sector, Vama Industries's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Vama Industries'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.
Vama Industries (BOM:512175) has a Gross Margin % of 6.34% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Vama Industries and its competitors. This is 57% below median its historical median of 14.81. According to the industry distribution chart, Vama Industries ranks #2592 out of 2685 companies in the Software industry, placing it in the top 96.5%.
Is Vama Industries' Gross Margin % too high?
Vama Industries' current Gross Margin % of 6.34% is 57% below median its 10-year median of 14.81. The Software industry median Gross Margin % is 40.49. Vama Industries' value of 6.34% is 84.3% below this industry median. Based on the distribution chart, Vama Industries ranks #2592 out of 2685 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Vama Industries has a GF Score™ of 70/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Vama Industries' Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Vama Industries ranks #2592 out of 2685 companies for Gross Margin %. This places Vama Industries in the lower half of its industry. The industry median Gross Margin % is 40.49. Vama Industries' value of 6.34% is 84.3% below this benchmark. While the company's 10-year median is 14.81 vs. the industry median of 40.49, Vama Industries 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 Software company?
The median Gross Margin % among Software companies is 40.49, based on 2,685 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. Vama Industries's current Gross Margin % of 6.34% is 84.3% 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 Vama Industries and its competitors. For the Software industry, the median Gross Margin % is 40.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vama Industries's current Gross Margin % is 6.34%, which is 57% below median its own 10-year median of 14.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vama Industries stock overvalued right now?
Based on GuruFocus' analysis, Vama Industries (BOM:512175) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹4.98, compared to a current price of ₹3.65 — trading 26.7% below its estimated fair value. The current Gross Margin % is 6.34%, which is 57% below median its 10-year median of 14.81 and 84.3% below the Software industry median of 40.49. Vama Industries' overall GF Score™ is 70/100 with 2 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 Vama Industries (BOM:512175), the current Gross Margin % is 6.34% 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 Vama Industries (BOM:512175) Overvalued in 2026?
Based on GuruFocus' analysis, Vama Industries stock appears to be undervalued.
The current stock price of ₹3.65 is trading 26.7% below its estimated GF Value™ of ₹4.98.
GuruFocus considers Vama Industries to be Modestly Undervalued.
Key valuation signals for BOM:512175:
Gross Margin %: 6.34% (57% below median its 10-year median of 14.81)
GF Value™: ₹4.98 vs. price of ₹3.65 (26.7% below fair value)
Industry Position: 84.3% below the Software median (#2592 of 2685)
No single metric tells the full story. See the BOM:512175 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Vama Industries Ltd is engaged in engineering design and development services, system integration projects, IT infrastructure, data center engineering builds, and facility management services. Its only operating segment is IT-related services. The company generates its key revenue from the sale of goods-computers, peripherals, and software. It serves various industries, including aerospace and defense, automotive, banking, capital markets, chemical and process industries, consumer goods, energy and utilities, healthcare, industrial manufacturing, insurance, logistics, hospitality, and more.
70GF Score
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