Praj IndustriesBOM:522205 -1.64%92 Gross Margin % is 42.76% as of Mar. 2026, which is 6% below its 10-year median of 45.51. GuruFocus rates BOM:522205 with a GF Score™ of 92/100 and a GF Value™ of ₹491.86 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,718 Construction companies, Praj Industries ranks better than 88.24% on this metric.
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
Praj Industries had a gross margin of 42.76% 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.
Praj Industries Gross Margin % Related Terms
Praj Industries Gross Margin % Historical Data
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The historical data trend for Praj Industries'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:522205 vs PWR, FIX, EME: Gross Margin % Comparison
For the Engineering & Construction subindustry, Praj Industries'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.
Praj Industries Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Praj Industries's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Praj Industries'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.
Praj Industries (BOM:522205) has a Gross Margin % of 42.76% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Praj Industries and its competitors. This is near median its historical median of 45.51. Over the past decade, Praj Industries' Gross Margin % has ranged from 35.20 to 48.86. According to the industry distribution chart, Praj Industries ranks #202 out of 1718 companies in the Construction industry, placing it in the top 11.8%.
Is Praj Industries' Gross Margin % too high?
Praj Industries' current Gross Margin % of 42.76% is near median its 10-year median of 45.51. Over the past 10 years, this metric has ranged from a low of 35.20 to a high of 48.86. The Construction industry median Gross Margin % is 20.79. Praj Industries' value of 42.76% is 105.7% above this industry median. Based on the distribution chart, Praj Industries ranks #202 out of 1718 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Praj Industries has a GF Score™ of 92/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Praj Industries' Gross Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Praj Industries ranks #202 out of 1718 companies for Gross Margin %. This places Praj Industries in the top 12% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 20.79. Praj Industries' value of 42.76% is 105.7% above this benchmark. Historically, Praj Industries' own Gross Margin % has ranged from 35.20 to 48.86 over the past decade. While the company's 10-year median is 45.51 vs. the industry median of 20.79, Praj Industries 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 Construction company?
The median Gross Margin % among Construction companies is 20.79, based on 1,718 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. Praj Industries's current Gross Margin % of 42.76% is 105.7% 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 Praj Industries and its competitors. For the Construction industry, the median Gross Margin % is 20.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Praj Industries's current Gross Margin % is 42.76%, which is near median its own 10-year median of 45.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Praj Industries stock overvalued right now?
Based on GuruFocus' analysis, Praj Industries (BOM:522205) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹491.86, compared to a current price of ₹353.90 — trading 28% below its estimated fair value. The current Gross Margin % is 42.76%, which is near median its 10-year median of 45.51 and 105.7% above the Construction industry median of 20.79. Praj Industries' overall GF Score™ is 92/100 with 4 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 Praj Industries (BOM:522205), the current Gross Margin % is 42.76% 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 Praj Industries (BOM:522205) Overvalued in 2026?
Based on GuruFocus' analysis, Praj Industries stock appears to be undervalued.
The current stock price of ₹353.90 is trading 28% below its estimated GF Value™ of ₹491.86.
GuruFocus considers Praj Industries to be Modestly Undervalued.
Key valuation signals for BOM:522205:
Gross Margin %: 42.76% (near median its 10-year median of 45.51)
GF Value™: ₹491.86 vs. price of ₹353.90 (28% below fair value)
Industry Position: 105.7% above the Construction median (#202 of 1718)
No single metric tells the full story. See the BOM:522205 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Praj Industries Ltd is an engineering company based in India. The company operates in a single segment namely Process and Project Engineering. Its business line consists of BioEnergy, High Purity Solutions, Brewery Plants, Wastewater Treatment, Bioproducts, Skid Engineering and Process Solutions, and Critical Process Equipment and Systems.
92GF Score
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