Elgi EquipmentsBOM:522074 -2.11%96 Gross Margin % is 49.78% as of Mar. 2026, which is 9% above its 10-year median of 45.52. GuruFocus rates BOM:522074 with a GF Score™ of 96/100 and a GF Value™ of ₹672.57 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 2,998 Industrial Products companies, Elgi Equipments ranks better than 90.36% on this metric.
The historical rank and industry rank for Elgi Equipments's Gross Margin % or its related term are showing as below:
BOM:522074'
s Gross Margin % Range Over the Past 10 Years
Min: 42.67 Med: 45.52 Max: 51.08
Current: 51.05
During the past 13 years, the highestGross Margin % of Elgi Equipments was 51.08%. The lowest was 42.67%. And the median was 45.52%.
BOM:522074's Gross Margin % is ranked better than 90.36% of 2998
companies
in the Industrial Products industry
Industry Median: 26.84
vs BOM:522074: 51.05
Elgi Equipments had a gross margin of 49.78% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Elgi Equipments was 2.90% per year.
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
Elgi Equipments had a gross margin of 49.78% 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.
Elgi Equipments Gross Margin % Related Terms
Elgi Equipments Gross Margin % Historical Data
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The historical data trend for Elgi Equipments'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:522074 vs GEV, ETN, PH: Gross Margin % Comparison
For the Specialty Industrial Machinery subindustry, Elgi Equipments'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.
Elgi Equipments Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Elgi Equipments's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Elgi Equipments'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.
Elgi Equipments (BOM:522074) has a Gross Margin % of 49.78% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Elgi Equipments and its competitors. This is near median its historical median of 45.52. Over the past decade, Elgi Equipments' Gross Margin % has ranged from 42.67 to 51.08. According to the industry distribution chart, Elgi Equipments ranks #289 out of 2998 companies in the Industrial Products industry, placing it in the top 9.6%.
Is Elgi Equipments' Gross Margin % too high?
Elgi Equipments' current Gross Margin % of 49.78% is near median its 10-year median of 45.52. Over the past 10 years, this metric has ranged from a low of 42.67 to a high of 51.08. The Industrial Products industry median Gross Margin % is 26.84. Elgi Equipments' value of 49.78% is 85.5% above this industry median. Based on the distribution chart, Elgi Equipments ranks #289 out of 2998 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Elgi Equipments has a GF Score™ of 96/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Elgi Equipments' Gross Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Elgi Equipments ranks #289 out of 2998 companies for Gross Margin %. This places Elgi Equipments in the top 10% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 26.84. Elgi Equipments' value of 49.78% is 85.5% above this benchmark. Historically, Elgi Equipments' own Gross Margin % has ranged from 42.67 to 51.08 over the past decade. While the company's 10-year median is 45.52 vs. the industry median of 26.84, Elgi Equipments 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.84, based on 2,998 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. Elgi Equipments's current Gross Margin % of 49.78% is 85.5% 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 Elgi Equipments and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Elgi Equipments's current Gross Margin % is 49.78%, which is near median its own 10-year median of 45.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Elgi Equipments stock overvalued right now?
Based on GuruFocus' analysis, Elgi Equipments (BOM:522074) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹672.57, compared to a current price of ₹576.25 — trading 14.3% below its estimated fair value. The current Gross Margin % is 49.78%, which is near median its 10-year median of 45.52 and 85.5% above the Industrial Products industry median of 26.84. Elgi Equipments' overall GF Score™ is 96/100 with 3 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 Elgi Equipments (BOM:522074), the current Gross Margin % is 49.78% 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 Elgi Equipments (BOM:522074) Overvalued in 2026?
Based on GuruFocus' analysis, Elgi Equipments stock appears to be undervalued.
The current stock price of ₹576.25 is trading 14.3% below its estimated GF Value™ of ₹672.57.
GuruFocus considers Elgi Equipments to be Modestly Undervalued.
Key valuation signals for BOM:522074:
Gross Margin %: 49.78% (near median its 10-year median of 45.52)
GF Value™: ₹672.57 vs. price of ₹576.25 (14.3% below fair value)
Industry Position: 85.5% above the Industrial Products median (#289 of 2998)
No single metric tells the full story. See the BOM:522074 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Elgi Equipments Ltd manufactures air compressors and compressed air systems. The segment in which the group operates includes Air Compressors and Automotive Equipment. Its products include piston compressors, electric lubricated screw compressors, electric oil-free screw compressors, portable compressors, railway compressors, and air accessories. Geographically, it derives a majority of its revenue from India and also has a presence in the United States of America, Italy, Australia, and other countries. It serves the Textile; Manufacturing; Automotive; Agriculture and Construction industries.
96GF Score
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