The South India Paper MillsBOM:516108 +1.07%66 Gross Margin % is 43.85% as of Mar. 2026, which is 41% above its 10-year median of 31.07. GuruFocus rates BOM:516108 with a GF Score™ of 66/100 and a GF Value™ of ₹121.90 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 279 Forest Products companies, The South India Paper Mills ranks better than 82.8% on this metric.
The South India Paper Mills (BOM:516108) 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
The South India Paper Mills had a gross margin of 43.85% 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.
The South India Paper Mills Gross Margin % Related Terms
The South India Paper Mills 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.
The South India Paper Mills Gross Margin % Competitor Comparison
For the Paper & Paper Products subindustry, The South India Paper Mills'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.
The South India Paper Mills Gross Margin % vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, The South India Paper Mills's Gross Margin % distribution charts can be found below:
* The bar in red indicates where The South India Paper Mills'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.
The South India Paper Mills (BOM:516108) has a Gross Margin % of 43.85% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on The South India Paper Mills and its competitors. This is 41% above median its historical median of 31.07. Over the past decade, The South India Paper Mills' Gross Margin % has ranged from 13.93 to 42.07. According to the industry distribution chart, The South India Paper Mills ranks #48 out of 279 companies in the Forest Products industry, placing it in the top 17.2%.
Is The South India Paper Mills' Gross Margin % too high?
The South India Paper Mills' current Gross Margin % of 43.85% is 41% above median its 10-year median of 31.07. Over the past 10 years, this metric has ranged from a low of 13.93 to a high of 42.07. The Forest Products industry median Gross Margin % is 18.89. The South India Paper Mills' value of 43.85% is 132.1% above this industry median. Based on the distribution chart, The South India Paper Mills ranks #48 out of 279 companies in the Forest Products industry, which is in the top quartile — a strong position relative to peers. Overall, The South India Paper Mills has a GF Score™ of 66/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does The South India Paper Mills' Gross Margin % compare to competitors?
According to the Forest Products industry distribution chart, The South India Paper Mills ranks #48 out of 279 companies for Gross Margin %. This places The South India Paper Mills in the top 17% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 18.89. The South India Paper Mills' value of 43.85% is 132.1% above this benchmark. Historically, The South India Paper Mills' own Gross Margin % has ranged from 13.93 to 42.07 over the past decade. While the company's 10-year median is 31.07 vs. the industry median of 18.89, The South India Paper Mills 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 Forest Products company?
The median Gross Margin % among Forest Products companies is 18.89, based on 279 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. The South India Paper Mills's current Gross Margin % of 43.85% is 132.1% 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 The South India Paper Mills and its competitors. For the Forest Products industry, the median Gross Margin % is 18.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The South India Paper Mills's current Gross Margin % is 43.85%, which is 41% above median its own 10-year median of 31.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The South India Paper Mills stock overvalued right now?
Based on GuruFocus' analysis, The South India Paper Mills (BOM:516108) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹121.90, compared to a current price of ₹104.10 — trading 14.6% below its estimated fair value. The current Gross Margin % is 43.85%, which is 41% above median its 10-year median of 31.07 and 132.1% above the Forest Products industry median of 18.89. The South India Paper Mills' overall GF Score™ is 66/100 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 The South India Paper Mills (BOM:516108), the current Gross Margin % is 43.85% 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 The South India Paper Mills (BOM:516108) Overvalued in 2026?
Based on GuruFocus' analysis, The South India Paper Mills stock appears to be undervalued.
The current stock price of ₹104.10 is trading 14.6% below its estimated GF Value™ of ₹121.90.
GuruFocus considers The South India Paper Mills to be Modestly Undervalued.
Key valuation signals for BOM:516108:
Gross Margin %: 43.85% (41% above median its 10-year median of 31.07)
GF Value™: ₹121.90 vs. price of ₹104.10 (14.6% below fair value)
Industry Position: 132.1% above the Forest Products median (#48 of 279)
No single metric tells the full story. See the BOM:516108 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The South India Paper Mills Ltd is the manufacturer of corrugating raw material and paper boards. It is also engaged in the manufacture of corrugated paper and paperboard, and containers of paper and paperboard and power generation. The company's only reportable business segment is Paper and paper products. The firm operates in India. The majority of the company's revenues are generated through paper and paper products.
66GF Score
Get the complete analysis for BOM:516108
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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