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Godavari DrugsBOM:530317 -0.49%54 Gross Margin % is 23.50% as of Mar. 2026, which is 6% above its 10-year median of 22.17. GuruFocus rates BOM:530317 with a GF Score™ of 54/100 and a GF Value™ of ₹72.35 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 940 Drug Manufacturers companies, Godavari Drugs ranks worse than 84.47% on this metric.
The historical rank and industry rank for Godavari Drugs's Gross Margin % or its related term are showing as below:
BOM:530317'
s Gross Margin % Range Over the Past 10 Years
Min: 19.03 Med: 22.17 Max: 27.96
Current: 26.76
During the past 13 years, the highestGross Margin % of Godavari Drugs was 27.96%. The lowest was 19.03%. And the median was 22.17%.
BOM:530317's Gross Margin % is ranked worse than 84.47% of 940
companies
in the Drug Manufacturers industry
Industry Median: 48.35
vs BOM:530317: 26.76
Godavari Drugs had a gross margin of 23.50% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Godavari Drugs was 7.30% 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
Godavari Drugs had a gross margin of 23.50% 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.
Godavari Drugs Gross Margin % Related Terms
Godavari Drugs Gross Margin % Historical Data
* Premium members only.
The historical data trend for Godavari Drugs'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 Drug Manufacturers - Specialty & Generic subindustry, Godavari Drugs'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.
Godavari Drugs Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Godavari Drugs's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Godavari Drugs'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.
Godavari Drugs (BOM:530317) has a Gross Margin % of 23.50% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Godavari Drugs and its competitors. This is near median its historical median of 22.17. Over the past decade, Godavari Drugs' Gross Margin % has ranged from 19.03 to 27.96. According to the industry distribution chart, Godavari Drugs ranks #794 out of 940 companies in the Drug Manufacturers industry, placing it in the top 84.5%.
Is Godavari Drugs' Gross Margin % too high?
Godavari Drugs' current Gross Margin % of 23.50% is near median its 10-year median of 22.17. Over the past 10 years, this metric has ranged from a low of 19.03 to a high of 27.96. The Drug Manufacturers industry median Gross Margin % is 48.35. Godavari Drugs' value of 23.50% is 51.4% below this industry median. Based on the distribution chart, Godavari Drugs ranks #794 out of 940 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers. Overall, Godavari Drugs has a GF Score™ of 54/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Godavari Drugs' Gross Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Godavari Drugs ranks #794 out of 940 companies for Gross Margin %. This places Godavari Drugs in the lower half of its industry. The industry median Gross Margin % is 48.35. Godavari Drugs' value of 23.50% is 51.4% below this benchmark. Historically, Godavari Drugs' own Gross Margin % has ranged from 19.03 to 27.96 over the past decade. While the company's 10-year median is 22.17 vs. the industry median of 48.35, Godavari Drugs 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 Drug Manufacturers company?
The median Gross Margin % among Drug Manufacturers companies is 48.35, based on 940 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. Godavari Drugs's current Gross Margin % of 23.50% is 51.4% 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 Godavari Drugs and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Godavari Drugs's current Gross Margin % is 23.50%, which is near median its own 10-year median of 22.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Godavari Drugs stock overvalued right now?
Based on GuruFocus' analysis, Godavari Drugs (BOM:530317) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹72.35, compared to a current price of ₹102.50 — trading 41.7% above its estimated fair value. The current Gross Margin % is 23.50%, which is near median its 10-year median of 22.17 and 51.4% below the Drug Manufacturers industry median of 48.35. Godavari Drugs' overall GF Score™ is 54/100 with 5 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 Godavari Drugs (BOM:530317), the current Gross Margin % is 23.50% 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 Godavari Drugs (BOM:530317) Overvalued in 2026?
Based on GuruFocus' analysis, Godavari Drugs stock appears to be overvalued.
The current stock price of ₹102.50 is trading 41.7% above its estimated GF Value™ of ₹72.35.
GuruFocus considers Godavari Drugs to be Significantly Overvalued.
Key valuation signals for BOM:530317:
Gross Margin %: 23.50% (near median its 10-year median of 22.17)
GF Value™: ₹72.35 vs. price of ₹102.50 (41.7% above fair value)
Industry Position: 51.4% below the Drug Manufacturers median (#794 of 940)
No single metric tells the full story. See the BOM:530317 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Godavari Drugs Ltd is an India-based pharmaceutical company. It is principally engaged in manufacturing of APl's, intermediates and fine chemicals,. The firm's product includes Ciprofloxacin hydrochloride, ciprofloxacin, ciprofloxacin lactate, ciprofloxacin lactate, and Others. The company operates only one segment which is the manufacture and sale of Active Pharmaceutical Ingredients (API) and its intermediates.
54GF Score
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