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Sovereign DiamondsBOM:523826 +0.91%45 Gross Margin % is 23.83% as of Mar. 2026, which is 20% above its 10-year median of 19.81. GuruFocus rates BOM:523826 with a GF Score™ of 45/100 and a GF Value™ of ₹14.22 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,121 Retail - Cyclical companies, Sovereign Diamonds ranks worse than 99.64% on this metric.
The historical rank and industry rank for Sovereign Diamonds's Gross Margin % or its related term are showing as below:
BOM:523826'
s Gross Margin % Range Over the Past 10 Years
Min: -14.68 Med: 19.81 Max: 24.24
Current: -11.95
During the past 13 years, the highestGross Margin % of Sovereign Diamonds was 24.24%. The lowest was -14.68%. And the median was 19.81%.
BOM:523826's Gross Margin % is ranked worse than 99.64% of 1121
companies
in the Retail - Cyclical industry
Industry Median: 36.25
vs BOM:523826: -11.95
Sovereign Diamonds had a gross margin of 23.83% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Sovereign Diamonds was 0.00% per year.
Sovereign Diamonds (BOM:523826) 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
Sovereign Diamonds had a gross margin of 23.83% 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.
Sovereign Diamonds Gross Margin % Related Terms
Sovereign Diamonds Gross Margin % Historical Data
* Premium members only.
The historical data trend for Sovereign Diamonds'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.
For the Luxury Goods subindustry, Sovereign Diamonds'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.
Sovereign Diamonds Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Sovereign Diamonds's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sovereign Diamonds'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.
Sovereign Diamonds (BOM:523826) has a Gross Margin % of 23.83% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Sovereign Diamonds and its competitors. This is 20% above median its historical median of 19.81. According to the industry distribution chart, Sovereign Diamonds ranks #1117 out of 1121 companies in the Retail - Cyclical industry, placing it in the top 99.6%.
Is Sovereign Diamonds' Gross Margin % too high?
Sovereign Diamonds' current Gross Margin % of 23.83% is 20% above median its 10-year median of 19.81. The Retail - Cyclical industry median Gross Margin % is 36.25. Sovereign Diamonds' value of 23.83% is 34.3% below this industry median. Based on the distribution chart, Sovereign Diamonds ranks #1117 out of 1121 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, Sovereign Diamonds has a GF Score™ of 45/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sovereign Diamonds' Gross Margin % compare to TPR?
According to the Retail - Cyclical industry distribution chart, Sovereign Diamonds ranks #1117 out of 1121 companies for Gross Margin %. This places Sovereign Diamonds in the lower half of its industry. The industry median Gross Margin % is 36.25. Sovereign Diamonds' value of 23.83% is 34.3% below this benchmark. While the company's 10-year median is 19.81 vs. the industry median of 36.25, Sovereign Diamonds 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 Retail - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.25, based on 1,121 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. Sovereign Diamonds's current Gross Margin % of 23.83% is 34.3% 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 Sovereign Diamonds and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sovereign Diamonds's current Gross Margin % is 23.83%, which is 20% above median its own 10-year median of 19.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sovereign Diamonds stock overvalued right now?
Based on GuruFocus' analysis, Sovereign Diamonds (BOM:523826) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹14.22, compared to a current price of ₹26.54 — trading 86.6% above its estimated fair value. The current Gross Margin % is 23.83%, which is 20% above median its 10-year median of 19.81 and 34.3% below the Retail - Cyclical industry median of 36.25. Sovereign Diamonds' overall GF Score™ is 45/100 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 Sovereign Diamonds (BOM:523826), the current Gross Margin % is 23.83% 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 Sovereign Diamonds (BOM:523826) Overvalued in 2026?
Based on GuruFocus' analysis, Sovereign Diamonds stock appears to be overvalued.
The current stock price of ₹26.54 is trading 86.6% above its estimated GF Value™ of ₹14.22.
GuruFocus considers Sovereign Diamonds to be Significantly Overvalued.
Key valuation signals for BOM:523826:
Gross Margin %: 23.83% (20% above median its 10-year median of 19.81)
GF Value™: ₹14.22 vs. price of ₹26.54 (86.6% above fair value)
Industry Position: 34.3% below the Retail - Cyclical median (#1117 of 1121)
No single metric tells the full story. See the BOM:523826 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sovereign Diamonds Ltd is engaged in manufacturing, selling of Gold Jewellery, Diamond Studded Jewellery and Silver item. The company supplies its products to retail brands and retail chains. It has only one operating segment Jewellery Business.
45GF Score
Get the complete analysis for BOM:523826
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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