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
Arihant's Securities had a gross margin of -377.38% 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.
Arihant's Securities Gross Margin % Related Terms
Arihant's Securities Gross Margin % Historical Data
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The historical data trend for Arihant's Securities'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:531017 vs MS, GS, SCHW: Gross Margin % Comparison
For the Capital Markets subindustry, Arihant's Securities'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.
Arihant's Securities Gross Margin % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Arihant's Securities's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Arihant's Securities'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.
Arihant's Securities (BOM:531017) has a Gross Margin % of -377.38% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Arihant's Securities and its competitors. According to the industry distribution chart, Arihant's Securities ranks #473 out of 618 companies in the Capital Markets industry, placing it in the top 76.5%.
Is Arihant's Securities' Gross Margin % too high?
Arihant's Securities' current Gross Margin % is -377.38%. Based on the distribution chart, Arihant's Securities ranks #473 out of 618 companies in the Capital Markets industry, which is in the bottom quartile relative to peers. Overall, Arihant's Securities has a GF Score™ of 66/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Arihant's Securities' Gross Margin % compare to MS and GS?
According to the Capital Markets industry distribution chart, Arihant's Securities ranks #473 out of 618 companies for Gross Margin %. This places Arihant's Securities in the lower half of its industry. The industry median Gross Margin % is 49.87. 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 Capital Markets company?
The median Gross Margin % among Capital Markets companies is 49.87, based on 618 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. 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 Arihant's Securities and its competitors. For the Capital Markets industry, the median Gross Margin % is 49.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arihant's Securities's current Gross Margin % is -377.38%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arihant's Securities stock overvalued right now?
Based on GuruFocus' analysis, Arihant's Securities (BOM:531017) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹2.42, compared to a current price of ₹19.49 — trading 705.4% above its estimated fair value. The current Gross Margin % is -377.38%. Arihant's Securities' overall GF Score™ is 66/100 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 Arihant's Securities (BOM:531017), the current Gross Margin % is -377.38% 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 Arihant's Securities (BOM:531017) Overvalued in 2026?
Based on GuruFocus' analysis, Arihant's Securities stock appears to be overvalued.
The current stock price of ₹19.49 is trading 705.4% above its estimated GF Value™ of ₹2.42.
GuruFocus considers Arihant's Securities to be Significantly Overvalued.
Key valuation signals for BOM:531017:
Gross Margin %: -377.38%
GF Value™: ₹2.42 vs. price of ₹19.49 (705.4% above fair value)
No single metric tells the full story. See the BOM:531017 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arihant's Securities Ltd operates as a financial service company with its operations spanning proprietary investments, lending, and trading activities. The majority of the company's revenue is generated from its trading of shares activity.
66GF 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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