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Terai Tea CoBOM:530533 -0.28%59 Gross Margin % is 7.22% as of Mar. 2026, which is 64% below its 10-year median of 19.99. GuruFocus rates BOM:530533 with a GF Score™ of 59/100 and a GF Value™ of ₹93.45 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 1,914 Consumer Packaged Goods companies, Terai Tea Co ranks worse than 62.8% on this metric.
Terai Tea Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -1.3%.
The historical rank and industry rank for Terai Tea Co's Gross Margin % or its related term are showing as below:
BOM:530533'
s Gross Margin % Range Over the Past 10 Years
Min: 14.24 Med: 19.99 Max: 22.18
Current: 20.6
During the past 13 years, the highestGross Margin % of Terai Tea Co was 22.18%. The lowest was 14.24%. And the median was 19.99%.
BOM:530533's Gross Margin % is ranked worse than 62.8% of 1914
companies
in the Consumer Packaged Goods industry
Industry Median: 26.305
vs BOM:530533: 20.60
Terai Tea Co had a gross margin of 7.22% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Terai Tea Co was -1.30% per year.
Terai Tea Co (BOM:530533) 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
Terai Tea Co had a gross margin of 7.22% for the quarter that ended in Mar. 2026 => 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.
Terai Tea Co Gross Margin % Related Terms
Terai Tea Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Terai 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.
BOM:530533 vs ADM, BG, TSN: Gross Margin % Comparison
For the Farm Products subindustry, Terai 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.
Terai Tea Co Gross Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Terai Tea Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Terai 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.
Terai Tea Co (BOM:530533) has a Gross Margin % of 7.22% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Terai Tea Co and its competitors. This is 64% below median its historical median of 19.99. Over the past decade, Terai Tea Co's Gross Margin % has ranged from 14.24 to 22.18. According to the industry distribution chart, Terai Tea Co ranks #1202 out of 1914 companies in the Consumer Packaged Goods industry, placing it in the top 62.8%.
Is Terai Tea Co's Gross Margin % too high?
Terai Tea Co's current Gross Margin % of 7.22% is 64% below median its 10-year median of 19.99. Over the past 10 years, this metric has ranged from a low of 14.24 to a high of 22.18. The Consumer Packaged Goods industry median Gross Margin % is 26.31. Terai Tea Co's value of 7.22% is 72.6% below this industry median. Based on the distribution chart, Terai Tea Co ranks #1202 out of 1914 companies in the Consumer Packaged Goods industry, which is below the industry midpoint. Overall, Terai Tea Co has a GF Score™ of 59/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Terai Tea Co's Gross Margin % compare to ADM and BG?
According to the Consumer Packaged Goods industry distribution chart, Terai Tea Co ranks #1202 out of 1914 companies for Gross Margin %. This places Terai Tea Co in the lower half of its industry. The industry median Gross Margin % is 26.31. Terai Tea Co's value of 7.22% is 72.6% below this benchmark. Historically, Terai Tea Co's own Gross Margin % has ranged from 14.24 to 22.18 over the past decade. While the company's 10-year median is 19.99 vs. the industry median of 26.31, Terai 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 Consumer Packaged Goods company?
The median Gross Margin % among Consumer Packaged Goods companies is 26.31, based on 1,914 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. Terai Tea Co's current Gross Margin % of 7.22% is 72.6% 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 Terai Tea Co and its competitors. For the Consumer Packaged Goods industry, the median Gross Margin % is 26.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Terai Tea Co's current Gross Margin % is 7.22%, which is 64% below median its own 10-year median of 19.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Terai Tea Co stock overvalued right now?
Based on GuruFocus' analysis, Terai Tea Co (BOM:530533) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹93.45, compared to a current price of ₹124.00 — trading 32.7% above its estimated fair value. The current Gross Margin % is 7.22%, which is 64% below median its 10-year median of 19.99 and 72.6% below the Consumer Packaged Goods industry median of 26.31. Terai Tea Co's overall GF Score™ is 59/100 with 10 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 Terai Tea Co (BOM:530533), the current Gross Margin % is 7.22% 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 Terai Tea Co (BOM:530533) Overvalued in 2026?
Based on GuruFocus' analysis, Terai Tea Co stock appears to be overvalued.
The current stock price of ₹124.00 is trading 32.7% above its estimated GF Value™ of ₹93.45.
GuruFocus considers Terai Tea Co to be Significantly Overvalued.
Key valuation signals for BOM:530533:
Gross Margin %: 7.22% (64% below median its 10-year median of 19.99)
GF Value™: ₹93.45 vs. price of ₹124.00 (32.7% above fair value)
Industry Position: 72.6% below the Consumer Packaged Goods median (#1202 of 1914)
No single metric tells the full story. See the BOM:530533 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Terai Tea Co Ltd is a tea manufacturing company in North Bengal, India. In addition, it is engaged in the trading of sugar, Raw Jute, and various merchandise fabrics. The company is also involved in the export of various merchandise to Bangladesh and other Middle East countries. The Group operates in two business segments: Trading Items, and Tea Production. The majority of its revenue is generated from the trading items segment.
59GF Score
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