Sri Nachammai Cotton Mills (BOM:521234) Gross Margin %: 20.11% (As of Mar. 2026) — 15% Above Median

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BOM:521234 Sri Nachammai Cotton Mills Ltd BOM:521234
45 GF Score
Price ₹29.28
GF Value ₹30.47
Valuation Fairly Valued
! 5 Warning Signs
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What is Sri Nachammai Cotton Mills Gross Margin %?

Sri Nachammai Cotton Mills BOM:521234 45 Gross Margin % is 20.11% as of Mar. 2026, which is 15% above its 10-year median of 17.45. GuruFocus rates BOM:521234 with a GF Score™ of 45/100 and a GF Value™ of ₹30.47 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,027 Manufacturing - Apparel & Accessories companies, Sri Nachammai Cotton Mills ranks worse than 82.47% on this metric.

Gross Margin % is calculated as gross profit divided by its revenue. Sri Nachammai Cotton Mills's Gross Profit for the three months ended in Mar. 2026 was ₹29.9 Mil. Sri Nachammai Cotton Mills's Revenue for the three months ended in Mar. 2026 was ₹148.8 Mil. Therefore, Sri Nachammai Cotton Mills's Gross Margin % for the quarter that ended in Mar. 2026 was 20.11%.

Warning Sign:

Sri Nachammai Cotton Mills Ltd gross margin has been in long-term decline. The average rate of decline per year is -10.4%.


The historical rank and industry rank for Sri Nachammai Cotton Mills's Gross Margin % or its related term are showing as below:

BOM:521234' s Gross Margin % Range Over the Past 10 Years
Min: 8.8   Med: 17.45   Max: 20.4
Current: 11.1


During the past 13 years, the highest Gross Margin % of Sri Nachammai Cotton Mills was 20.40%. The lowest was 8.80%. And the median was 17.45%.

BOM:521234's Gross Margin % is ranked worse than
82.47% of 1027 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 28.53 vs BOM:521234: 11.10

Sri Nachammai Cotton Mills had a gross margin of 20.11% for the quarter that ended in Mar. 2026 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for Sri Nachammai Cotton Mills was -10.40% per year.


Sri Nachammai Cotton Mills  (BOM:521234) 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

Sri Nachammai Cotton Mills had a gross margin of 20.11% 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.


Sri Nachammai Cotton Mills Gross Margin % Related Terms


Sri Nachammai Cotton Mills Gross Margin % Historical Data

* Premium members only.

The historical data trend for Sri Nachammai Cotton Mills'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.

Sri Nachammai Cotton Mills Gross Margin % Chart

Sri Nachammai Cotton Mills Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 20.40 13.28 8.80 12.30 11.10

Sri Nachammai Cotton Mills Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.71 14.07 9.71 2.22 20.11

Sri Nachammai Cotton Mills Gross Margin % Competitor Comparison

For the Textile Manufacturing subindustry, Sri Nachammai Cotton 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.


Sri Nachammai Cotton Mills Gross Margin % vs Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Sri Nachammai Cotton Mills's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Sri Nachammai Cotton Mills's Gross Margin % falls into.


BOM:521234
45GF Score
Sri Nachammai Cotton Mills Ltd BOM:521234
Gross Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Sri Nachammai Cotton Mills Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Sri Nachammai Cotton Mills's Gross Margin for the fiscal year that ended in Mar. 2026 is calculated as

Gross Margin % (A: Mar. 2026 )=Gross Profit (A: Mar. 2026 ) / Revenue (A: Mar. 2026 )
=71.6 / 645.291
=(Revenue - Cost of Goods Sold) / Revenue
=(645.291 - 573.653) / 645.291
=11.10 %

Sri Nachammai Cotton Mills's Gross Margin for the quarter that ended in Mar. 2026 is calculated as


Gross Margin % (Q: Mar. 2026 )=Gross Profit (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=29.9 / 148.815
=(Revenue - Cost of Goods Sold) / Revenue
=(148.815 - 118.892) / 148.815
=20.11 %

* 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.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 20.11% mean?
Sri Nachammai Cotton Mills (BOM:521234) has a Gross Margin % of 20.11% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Sri Nachammai Cotton Mills and its competitors. This is 15% above median its historical median of 17.45. Over the past decade, Sri Nachammai Cotton Mills' Gross Margin % has ranged from 8.80 to 20.40. According to the industry distribution chart, Sri Nachammai Cotton Mills ranks #847 out of 1027 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 82.5%.
Is Sri Nachammai Cotton Mills' Gross Margin % too high?
Sri Nachammai Cotton Mills' current Gross Margin % of 20.11% is 15% above median its 10-year median of 17.45. Over the past 10 years, this metric has ranged from a low of 8.80 to a high of 20.40. The Manufacturing - Apparel & Accessories industry median Gross Margin % is 28.53. Sri Nachammai Cotton Mills' value of 20.11% is 29.5% below this industry median. Based on the distribution chart, Sri Nachammai Cotton Mills ranks #847 out of 1027 companies in the Manufacturing - Apparel & Accessories industry, which is in the bottom quartile relative to peers. Overall, Sri Nachammai Cotton Mills has a GF Score™ of 45/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Sri Nachammai Cotton Mills' Gross Margin % compare to competitors?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Sri Nachammai Cotton Mills ranks #847 out of 1027 companies for Gross Margin %. This places Sri Nachammai Cotton Mills in the lower half of its industry. The industry median Gross Margin % is 28.53. Sri Nachammai Cotton Mills' value of 20.11% is 29.5% below this benchmark. Historically, Sri Nachammai Cotton Mills' own Gross Margin % has ranged from 8.80 to 20.40 over the past decade. While the company's 10-year median is 17.45 vs. the industry median of 28.53, Sri Nachammai Cotton Mills has consistently been below 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 Manufacturing - Apparel & Accessories company?
The median Gross Margin % among Manufacturing - Apparel & Accessories companies is 28.53, based on 1,027 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. Sri Nachammai Cotton Mills's current Gross Margin % of 20.11% is 29.5% 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 Sri Nachammai Cotton Mills and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Gross Margin % is 28.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sri Nachammai Cotton Mills's current Gross Margin % is 20.11%, which is 15% above median its own 10-year median of 17.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sri Nachammai Cotton Mills stock overvalued right now?
Based on GuruFocus' analysis, Sri Nachammai Cotton Mills (BOM:521234) is currently considered Fairly Valued. The stock's GF Value™ is ₹30.47, compared to a current price of ₹29.28 — trading 3.9% below its estimated fair value. The current Gross Margin % is 20.11%, which is 15% above median its 10-year median of 17.45 and 29.5% below the Manufacturing - Apparel & Accessories industry median of 28.53. Sri Nachammai Cotton Mills' overall GF Score™ is 45/100 with 5 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 Sri Nachammai Cotton Mills (BOM:521234), the current Gross Margin % is 20.11% 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 Sri Nachammai Cotton Mills (BOM:521234) Overvalued in 2026?

Based on GuruFocus' analysis, Sri Nachammai Cotton Mills stock appears to be undervalued. The current stock price of ₹29.28 is trading 3.9% below its estimated GF Value™ of ₹30.47. GuruFocus considers Sri Nachammai Cotton Mills to be Fairly Valued.

Key valuation signals for BOM:521234:

  • Gross Margin %: 20.11% (15% above median its 10-year median of 17.45)
  • GF Value™: ₹30.47 vs. price of ₹29.28 (3.9% below fair value)
  • GF Score™: 45/100 with 5 warning signs
  • Industry Position: 29.5% below the Manufacturing - Apparel & Accessories median (#847 of 1027)

No single metric tells the full story. See the BOM:521234 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Sri Nachammai Cotton Mills Business Description

Address 4th Cross Street, Door No. 181, 'Vasantham', New Fairlands, Salem, TN, IND, 636016
Sri Nachammai Cotton Mills Ltd is engaged in the manufacture and sale of combed, carded, and compact cotton hosiery and hank yarns. Its products are used by manufacturers for fabric production, garment dyeing, and export purposes. The company operates spinning mills located in Chettinad, Sivaganga District, Tamil Nadu, India. Over the years, the company has expanded its spinning capacity and modernized its plant, with majority funding from internal accruals and long-term borrowings. Sri Nachammai Cotton Mills caters both to domestic and export markets in the textile sector.
45GF Score

Get the complete analysis for BOM:521234

Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹29.28
Price
₹30.47
GF Value