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Longview Tea Co (BOM:526568) 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
Longview Tea Co had a gross margin of 6.10% for the quarter that ended in Sep. 2025 => No sustainable 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.
Longview Tea Co Gross Margin % Related Terms
Longview Tea Co Gross Margin % Historical Data
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The historical data trend for Longview Tea Co'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 Conglomerates subindustry, Longview Tea Co'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.
Longview Tea Co Gross Margin % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Longview Tea Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Longview Tea Co'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.
Longview Tea Co (BOM:526568) has a Gross Margin % of 6.10% as of Sep. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Longview Tea Co and its competitors. This is 66% above median its historical median of 3.67.
Is Longview Tea Co's Gross Margin % too high?
Longview Tea Co's current Gross Margin % of 6.10% is 66% above median its 10-year median of 3.67. The Conglomerates industry median Gross Margin % is 25.88. Longview Tea Co's value of 6.10% is 76.4% below this industry median. Overall, Longview Tea Co has a GF Score™ of 63/100, reflecting its overall financial health beyond just this single metric.
How does Longview Tea Co's Gross Margin % compare to HON and MMM?
Longview Tea Co's Gross Margin % of 6.10% can be compared against companies in the Conglomerates industry. The industry median Gross Margin % is 25.88. Longview Tea Co's value of 6.10% is 76.4% below this benchmark. While the company's 10-year median is 3.67 vs. the industry median of 25.88, Longview Tea Co 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 Conglomerates company?
The median Gross Margin % among Conglomerates companies is 25.88, based on 515 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. Longview Tea Co's current Gross Margin % of 6.10% is 76.4% 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 Longview Tea Co and its competitors. For the Conglomerates industry, the median Gross Margin % is 25.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Longview Tea Co's current Gross Margin % is 6.10%, which is 66% above median its own 10-year median of 3.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Longview Tea Co stock overvalued right now?
Longview Tea Co (BOM:526568) has a current Gross Margin % of 6.10%. The stock's GF Value™ is ₹17.05, compared to a current price of ₹14.82 — trading 13.1% below its estimated fair value. The current Gross Margin % is 6.10%, which is 66% above median its 10-year median of 3.67 and 76.4% below the Conglomerates industry median of 25.88. Longview Tea Co's overall GF Score™ is 63/100 with 1 warning sign 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 Longview Tea Co (BOM:526568), the current Gross Margin % is 6.10% as of Sep. 2025. 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 Longview Tea Co (BOM:526568) Overvalued in 2026?
Based on GuruFocus' analysis, Longview Tea Co stock appears to be undervalued.
The current stock price of ₹14.82 is trading 13.1% below its estimated GF Value™ of ₹17.05.
Key valuation signals for BOM:526568:
Gross Margin %: 6.10% (66% above median its 10-year median of 3.67)
GF Value™: ₹17.05 vs. price of ₹14.82 (13.1% below fair value)
Industry Position: 76.4% below the Conglomerates median
No single metric tells the full story. See the BOM:526568 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Longview Tea Co Ltd is an India-based company engaged in the business of trading in Tea, Ferrous Metals and non-ferrous metals. The company is also engaged in dealing and investing in shares and securities and has interest income from loans and advances. The company has two segments: Trading Activities and Financial Activities, and the company's group revenue is gained from Trading Activities.
63GF Score
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