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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
Southern Magnesium & Chemicals had a gross margin of 32.75% for the quarter that ended in Mar. 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.
Southern Magnesium & Chemicals Gross Margin % Related Terms
Southern Magnesium & Chemicals 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.
For the Other Industrial Metals & Mining subindustry, Southern Magnesium & Chemicals'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.
Southern Magnesium & Chemicals Gross Margin % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Southern Magnesium & Chemicals's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Southern Magnesium & Chemicals'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.
Southern Magnesium & Chemicals (BOM:513498) has a Gross Margin % of 32.75% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Southern Magnesium & Chemicals and its competitors. This is 43% below median its historical median of 57.69. Over the past decade, Southern Magnesium & Chemicals' Gross Margin % has ranged from 16.30 to 74.00. According to the industry distribution chart, Southern Magnesium & Chemicals ranks #293 out of 731 companies in the Metals & Mining industry, placing it in the top 40.1%.
Is Southern Magnesium & Chemicals' Gross Margin % too high?
Southern Magnesium & Chemicals' current Gross Margin % of 32.75% is 43% below median its 10-year median of 57.69. Over the past 10 years, this metric has ranged from a low of 16.30 to a high of 74.00. The Metals & Mining industry median Gross Margin % is 26.20. Southern Magnesium & Chemicals' value of 32.75% is 25% above this industry median. Based on the distribution chart, Southern Magnesium & Chemicals ranks #293 out of 731 companies in the Metals & Mining industry, which is above the industry midpoint. Overall, Southern Magnesium & Chemicals has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Southern Magnesium & Chemicals' Gross Margin % compare to competitors?
According to the Metals & Mining industry distribution chart, Southern Magnesium & Chemicals ranks #293 out of 731 companies for Gross Margin %. This puts Southern Magnesium & Chemicals in the upper half of its industry. The industry median Gross Margin % is 26.20. Southern Magnesium & Chemicals' value of 32.75% is 25% above this benchmark. Historically, Southern Magnesium & Chemicals' own Gross Margin % has ranged from 16.30 to 74.00 over the past decade. While the company's 10-year median is 57.69 vs. the industry median of 26.20, Southern Magnesium & Chemicals 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 Metals & Mining company?
The median Gross Margin % among Metals & Mining companies is 26.20, based on 731 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. Southern Magnesium & Chemicals's current Gross Margin % of 32.75% is 25% 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 Southern Magnesium & Chemicals and its competitors. For the Metals & Mining industry, the median Gross Margin % is 26.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Southern Magnesium & Chemicals's current Gross Margin % is 32.75%, which is 43% below median its own 10-year median of 57.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Southern Magnesium & Chemicals stock overvalued right now?
Based on GuruFocus' analysis, Southern Magnesium & Chemicals (BOM:513498) is currently considered Fairly Valued. The stock's GF Value™ is ₹65.16, compared to a current price of ₹71.80 — trading 10.2% above its estimated fair value. The current Gross Margin % is 32.75%, which is 43% below median its 10-year median of 57.69 and 25% above the Metals & Mining industry median of 26.20. Southern Magnesium & Chemicals' overall GF Score™ is 73/100 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 Southern Magnesium & Chemicals (BOM:513498), the current Gross Margin % is 32.75% 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 Southern Magnesium & Chemicals (BOM:513498) Overvalued in 2026?
Based on GuruFocus' analysis, Southern Magnesium & Chemicals stock appears to be overvalued.
The current stock price of ₹71.80 is trading 10.2% above its estimated GF Value™ of ₹65.16.
GuruFocus considers Southern Magnesium & Chemicals to be Fairly Valued.
Key valuation signals for BOM:513498:
Gross Margin %: 32.75% (43% below median its 10-year median of 57.69)
GF Value™: ₹65.16 vs. price of ₹71.80 (10.2% above fair value)
Industry Position: 25% above the Metals & Mining median (#293 of 731)
No single metric tells the full story. See the BOM:513498 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Southern Magnesium & Chemicals Business Description
Southern Magnesium & Chemicals Ltd is an Indian company engaged in the business of magnesium metal and related goods. The company also produces Magnesium alloy, Turnings, Granules, Powders, and extrusion.
73GF Score
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