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BOM:524715's Gross Margin % is ranked better than 91.93% of 942
companies
in the Drug Manufacturers industry
Industry Median: 48.54
vs BOM:524715: 80.17
Sun Pharmaceuticals Industries had a gross margin of 80.76% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Sun Pharmaceuticals Industries (BOM:524715) 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
Sun Pharmaceuticals Industries had a gross margin of 80.76% 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.
Sun Pharmaceuticals Industries Gross Margin % Related Terms
Sun Pharmaceuticals Industries 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.
Sun Pharmaceuticals Industries Gross Margin % Chart
BOM:524715 vs ZTS, UTHR: Gross Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Sun Pharmaceuticals 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.
Sun Pharmaceuticals Industries Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Sun Pharmaceuticals Industries's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sun Pharmaceuticals 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.
Sun Pharmaceuticals Industries (BOM:524715) has a Gross Margin % of 80.76% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Sun Pharmaceuticals Industries and its competitors. This is 13% above median its historical median of 71.33. Over the past decade, Sun Pharmaceuticals Industries' Gross Margin % has ranged from 66.14 to 80.17. According to the industry distribution chart, Sun Pharmaceuticals Industries ranks #76 out of 942 companies in the Drug Manufacturers industry, placing it in the top 8.1%.
Is Sun Pharmaceuticals Industries' Gross Margin % too high?
Sun Pharmaceuticals Industries' current Gross Margin % of 80.76% is 13% above median its 10-year median of 71.33. Over the past 10 years, this metric has ranged from a low of 66.14 to a high of 80.17. The Drug Manufacturers industry median Gross Margin % is 48.54. Sun Pharmaceuticals Industries' value of 80.76% is 66.4% above this industry median. Based on the distribution chart, Sun Pharmaceuticals Industries ranks #76 out of 942 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Sun Pharmaceuticals Industries has a GF Score™ of 91/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Sun Pharmaceuticals Industries' Gross Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Sun Pharmaceuticals Industries ranks #76 out of 942 companies for Gross Margin %. This places Sun Pharmaceuticals Industries in the top 8% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 48.54. Sun Pharmaceuticals Industries' value of 80.76% is 66.4% above this benchmark. Historically, Sun Pharmaceuticals Industries' own Gross Margin % has ranged from 66.14 to 80.17 over the past decade. While the company's 10-year median is 71.33 vs. the industry median of 48.54, Sun Pharmaceuticals 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 Drug Manufacturers company?
The median Gross Margin % among Drug Manufacturers companies is 48.54, based on 942 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. Sun Pharmaceuticals Industries's current Gross Margin % of 80.76% is 66.4% 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 Sun Pharmaceuticals Industries and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sun Pharmaceuticals Industries's current Gross Margin % is 80.76%, which is 13% above median its own 10-year median of 71.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sun Pharmaceuticals Industries stock overvalued right now?
Based on GuruFocus' analysis, Sun Pharmaceuticals Industries (BOM:524715) is currently considered Fairly Valued. The stock's GF Value™ is ₹1,927.98, compared to a current price of ₹1,973.50 — trading 2.4% above its estimated fair value. The current Gross Margin % is 80.76%, which is 13% above median its 10-year median of 71.33 and 66.4% above the Drug Manufacturers industry median of 48.54. Sun Pharmaceuticals Industries' overall GF Score™ is 91/100 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 Sun Pharmaceuticals Industries (BOM:524715), the current Gross Margin % is 80.76% 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 Sun Pharmaceuticals Industries (BOM:524715) Overvalued in 2026?
Based on GuruFocus' analysis, Sun Pharmaceuticals Industries stock appears to be overvalued.
The current stock price of ₹1,973.50 is trading 2.4% above its estimated GF Value™ of ₹1,927.98.
GuruFocus considers Sun Pharmaceuticals Industries to be Fairly Valued.
Key valuation signals for BOM:524715:
Gross Margin %: 80.76% (13% above median its 10-year median of 71.33)
GF Value™: ₹1,927.98 vs. price of ₹1,973.50 (2.4% above fair value)
Industry Position: 66.4% above the Drug Manufacturers median (#76 of 942)
No single metric tells the full story. See the BOM:524715 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sun Pharmaceuticals Industries Business Description
Sun Pharmaceuticals Industries Ltd is India's generic pharmaceutical manufacturing company. The company's substantial markets are the U.S. and India to make up the majority of revenue. The remaining is spread across both emerging and developed markets. In addition to generics, the company also produces and distributes name-brand formulas to specific geographies. It maintains manufacturing and research and development facilities globally to serve its markets but is majorly based in India.
91GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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