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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Smiths & Founders (India)BOM:513418 -1.02%54 Gross Margin % is 43.04% as of Jun. 2026, which is 16% above its 10-year median of 37.25. GuruFocus rates BOM:513418 with a GF Score™ of 54/100 and a GF Value™ of ₹6.53 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,318 Vehicles & Parts companies, Smiths & Founders (India) ranks better than 87.25% on this metric.
BOM:513418's Gross Margin % is ranked better than 87.25% of 1318
companies
in the Vehicles & Parts industry
Industry Median: 20.02
vs BOM:513418: 41.28
Smiths & Founders (India) had a gross margin of 43.04% for the quarter that ended in Jun. 2026 => Durable competitive advantage
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
Smiths & Founders (India) had a gross margin of 43.04% for the quarter that ended in Jun. 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.
Smiths & Founders (India) Gross Margin % Related Terms
Smiths & Founders (India) 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:513418 vs ORLY, AZO, GPC: Gross Margin % Comparison
For the Auto Parts subindustry, Smiths & Founders (India)'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.
Smiths & Founders (India) Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Smiths & Founders (India)'s Gross Margin % distribution charts can be found below:
* The bar in red indicates where Smiths & Founders (India)'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.
Smiths & Founders (India) (BOM:513418) has a Gross Margin % of 43.04% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Smiths & Founders (India) and its competitors. This is 16% above median its historical median of 37.25. Over the past decade, Smiths & Founders (India)'s Gross Margin % has ranged from 28.30 to 42.55. According to the industry distribution chart, Smiths & Founders (India) ranks #168 out of 1318 companies in the Vehicles & Parts industry, placing it in the top 12.7%.
Is Smiths & Founders (India)'s Gross Margin % too high?
Smiths & Founders (India)'s current Gross Margin % of 43.04% is 16% above median its 10-year median of 37.25. Over the past 10 years, this metric has ranged from a low of 28.30 to a high of 42.55. The Vehicles & Parts industry median Gross Margin % is 20.02. Smiths & Founders (India)'s value of 43.04% is 115% above this industry median. Based on the distribution chart, Smiths & Founders (India) ranks #168 out of 1318 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Smiths & Founders (India) has a GF Score™ of 54/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Smiths & Founders (India)'s Gross Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Smiths & Founders (India) ranks #168 out of 1318 companies for Gross Margin %. This places Smiths & Founders (India) in the top 13% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 20.02. Smiths & Founders (India)'s value of 43.04% is 115% above this benchmark. Historically, Smiths & Founders (India)'s own Gross Margin % has ranged from 28.30 to 42.55 over the past decade. While the company's 10-year median is 37.25 vs. the industry median of 20.02, Smiths & Founders (India) 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 Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 20.02, based on 1,318 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. Smiths & Founders (India)'s current Gross Margin % of 43.04% is 115% 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 Smiths & Founders (India) and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 20.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Smiths & Founders (India)'s current Gross Margin % is 43.04%, which is 16% above median its own 10-year median of 37.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Smiths & Founders (India) stock overvalued right now?
Based on GuruFocus' analysis, Smiths & Founders (India) (BOM:513418) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹6.53, compared to a current price of ₹10.63 — trading 62.8% above its estimated fair value. The current Gross Margin % is 43.04%, which is 16% above median its 10-year median of 37.25 and 115% above the Vehicles & Parts industry median of 20.02. Smiths & Founders (India)'s overall GF Score™ is 54/100 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 Smiths & Founders (India) (BOM:513418), the current Gross Margin % is 43.04% 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 Smiths & Founders (India) (BOM:513418) Overvalued in 2026?
Based on GuruFocus' analysis, Smiths & Founders (India) stock appears to be overvalued.
The current stock price of ₹10.63 is trading 62.8% above its estimated GF Value™ of ₹6.53.
GuruFocus considers Smiths & Founders (India) to be Significantly Overvalued.
Key valuation signals for BOM:513418:
Gross Margin %: 43.04% (16% above median its 10-year median of 37.25)
GF Value™: ₹6.53 vs. price of ₹10.63 (62.8% above fair value)
Industry Position: 115% above the Vehicles & Parts median (#168 of 1318)
No single metric tells the full story. See the BOM:513418 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Smiths & Founders (India) Ltd is engaged in manufacturing Forgings and Machined Components used in Automobiles, Agriculture, Mining, Material Handling, Power Transmission, Hydraulic, and General Engineering Industries. The product range includes rocker arms, connecting rods, tie rod ends, yokes, spiders, gear blanks, wheel dressers, insulator pins, insulator hooks, tool holders, valve bodies, rod eye ends, coal augers, rotary drill bits, rotovator shovels, cultivator blades, etc. The company is catering to both domestic and export markets.
54GF Score
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