Carborundum UniversalBOM:513375 +0.06%94 Gross Margin % is 58.55% as of Mar. 2026, which is 3% below its 10-year median of 60.56. GuruFocus rates BOM:513375 with a GF Score™ of 94/100 and a GF Value™ of ₹1,256.02 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 517 Conglomerates companies, Carborundum Universal ranks better than 91.49% 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
Carborundum Universal had a gross margin of 58.55% 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.
Carborundum Universal Gross Margin % Related Terms
Carborundum Universal Gross Margin % Historical Data
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The historical data trend for Carborundum Universal'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.
For the Conglomerates subindustry, Carborundum Universal'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.
Carborundum Universal Gross Margin % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Carborundum Universal's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Carborundum Universal'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.
Carborundum Universal (BOM:513375) has a Gross Margin % of 58.55% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Carborundum Universal and its competitors. This is near median its historical median of 60.56. Over the past decade, Carborundum Universal's Gross Margin % has ranged from 58.59 to 62.86. According to the industry distribution chart, Carborundum Universal ranks #44 out of 517 companies in the Conglomerates industry, placing it in the top 8.5%.
Is Carborundum Universal's Gross Margin % too high?
Carborundum Universal's current Gross Margin % of 58.55% is near median its 10-year median of 60.56. Over the past 10 years, this metric has ranged from a low of 58.59 to a high of 62.86. The Conglomerates industry median Gross Margin % is 25.98. Carborundum Universal's value of 58.55% is 125.4% above this industry median. Based on the distribution chart, Carborundum Universal ranks #44 out of 517 companies in the Conglomerates industry, which is in the top quartile — a strong position relative to peers. Overall, Carborundum Universal has a GF Score™ of 94/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Carborundum Universal's Gross Margin % compare to HON and MMM?
According to the Conglomerates industry distribution chart, Carborundum Universal ranks #44 out of 517 companies for Gross Margin %. This places Carborundum Universal in the top 9% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 25.98. Carborundum Universal's value of 58.55% is 125.4% above this benchmark. Historically, Carborundum Universal's own Gross Margin % has ranged from 58.59 to 62.86 over the past decade. While the company's 10-year median is 60.56 vs. the industry median of 25.98, Carborundum Universal 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 Conglomerates company?
The median Gross Margin % among Conglomerates companies is 25.98, based on 517 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. Carborundum Universal's current Gross Margin % of 58.55% is 125.4% 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 Carborundum Universal and its competitors. For the Conglomerates industry, the median Gross Margin % is 25.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Carborundum Universal's current Gross Margin % is 58.55%, which is near median its own 10-year median of 60.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Carborundum Universal stock overvalued right now?
Based on GuruFocus' analysis, Carborundum Universal (BOM:513375) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹1,256.02, compared to a current price of ₹1,090.60 — trading 13.2% below its estimated fair value. The current Gross Margin % is 58.55%, which is near median its 10-year median of 60.56 and 125.4% above the Conglomerates industry median of 25.98. Carborundum Universal's overall GF Score™ is 94/100 with 4 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 Carborundum Universal (BOM:513375), the current Gross Margin % is 58.55% 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 Carborundum Universal (BOM:513375) Overvalued in 2026?
Based on GuruFocus' analysis, Carborundum Universal stock appears to be undervalued.
The current stock price of ₹1,090.60 is trading 13.2% below its estimated GF Value™ of ₹1,256.02.
GuruFocus considers Carborundum Universal to be Modestly Undervalued.
Key valuation signals for BOM:513375:
Gross Margin %: 58.55% (near median its 10-year median of 60.56)
GF Value™: ₹1,256.02 vs. price of ₹1,090.60 (13.2% below fair value)
Industry Position: 125.4% above the Conglomerates median (#44 of 517)
No single metric tells the full story. See the BOM:513375 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Carborundum Universal Ltd is an investment holding company. Along with its subsidiaries, it mainly provides solutions predominantly for industrial manufacturing needs by developing, manufacturing, and marketing products using the properties of materials known as electrominerals. The company's reportable business segments are; Surface engineering (material removal, cutting, polishing) known as Abrasives; Ceramics; Electrominerals; Power; IT services; and others. Maximum revenue is derived from the Abrasives segment which is comprised of bonded, coated, processed cloth, polymers, power tools, and coolants. The company generates maximum revenue through exports and the rest from its business in India.
94GF Score
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