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Nova Iron & Steel (BOM:513566) 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
Nova Iron & Steel had a gross margin of 3.12% for the quarter that ended in Dec. 2025 => 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.
Nova Iron & Steel Gross Margin % Related Terms
Nova Iron & Steel Gross Margin % Historical Data
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The historical data trend for Nova Iron & Steel'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:513566 vs NUE, STLD, RS: Gross Margin % Comparison
For the Steel subindustry, Nova Iron & Steel'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.
Nova Iron & Steel Gross Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Nova Iron & Steel's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nova Iron & Steel'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.
Nova Iron & Steel (BOM:513566) has a Gross Margin % of 3.12% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Nova Iron & Steel and its competitors. According to the industry distribution chart, Nova Iron & Steel ranks #499 out of 595 companies in the Steel industry, placing it in the top 83.9%.
Is Nova Iron & Steel's Gross Margin % too high?
Nova Iron & Steel's current Gross Margin % is 3.12%. The Steel industry median Gross Margin % is 12.62. Nova Iron & Steel's value of 3.12% is 75.3% below this industry median. Based on the distribution chart, Nova Iron & Steel ranks #499 out of 595 companies in the Steel industry, which is in the bottom quartile relative to peers. Overall, Nova Iron & Steel has a GF Score™ of 56/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Nova Iron & Steel's Gross Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Nova Iron & Steel ranks #499 out of 595 companies for Gross Margin %. This places Nova Iron & Steel in the lower half of its industry. The industry median Gross Margin % is 12.62. Nova Iron & Steel's value of 3.12% is 75.3% below this benchmark. 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 Steel company?
The median Gross Margin % among Steel companies is 12.62, based on 595 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. Nova Iron & Steel's current Gross Margin % of 3.12% is 75.3% 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 Nova Iron & Steel and its competitors. For the Steel industry, the median Gross Margin % is 12.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nova Iron & Steel's current Gross Margin % is 3.12%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nova Iron & Steel stock overvalued right now?
Based on GuruFocus' analysis, Nova Iron & Steel (BOM:513566) is currently considered Fairly Valued. The stock's GF Value™ is ₹13.11, compared to a current price of ₹12.07 — trading 7.9% below its estimated fair value. The current Gross Margin % is 3.12% and 75.3% below the Steel industry median of 12.62. Nova Iron & Steel's overall GF Score™ is 56/100 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 Nova Iron & Steel (BOM:513566), the current Gross Margin % is 3.12% as of Dec. 2025. 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 Nova Iron & Steel (BOM:513566) Overvalued in 2026?
Based on GuruFocus' analysis, Nova Iron & Steel stock appears to be undervalued.
The current stock price of ₹12.07 is trading 7.9% below its estimated GF Value™ of ₹13.11.
GuruFocus considers Nova Iron & Steel to be Fairly Valued.
Key valuation signals for BOM:513566:
Gross Margin %: 3.12%
GF Value™: ₹13.11 vs. price of ₹12.07 (7.9% below fair value)
Industry Position: 75.3% below the Steel median (#499 of 595)
No single metric tells the full story. See the BOM:513566 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nova Iron & Steel Ltd is an Indian company engaged in the business of manufacturing and trading iron, steel, metals, securities, and natural resources.
56GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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