Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
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
Paragon Finance had a gross margin of -1.43% 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.
Paragon Finance Gross Margin % Related Terms
Paragon Finance Gross Margin % Historical Data
* Premium members only.
The historical data trend for Paragon Finance'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:531255 vs V, MA, AXP: Gross Margin % Comparison
For the Credit Services subindustry, Paragon Finance'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.
Paragon Finance Gross Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Paragon Finance's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Paragon Finance'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.
Paragon Finance (BOM:531255) has a Gross Margin % of -1.43% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Paragon Finance and its competitors. According to the industry distribution chart, Paragon Finance ranks #360 out of 390 companies in the Credit Services industry, placing it in the top 92.3%.
Is Paragon Finance's Gross Margin % too high?
Paragon Finance's current Gross Margin % is -1.43%. Based on the distribution chart, Paragon Finance ranks #360 out of 390 companies in the Credit Services industry, which is in the bottom quartile relative to peers. Overall, Paragon Finance has a GF Score™ of 59/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Paragon Finance's Gross Margin % compare to V and MA?
According to the Credit Services industry distribution chart, Paragon Finance ranks #360 out of 390 companies for Gross Margin %. This places Paragon Finance in the lower half of its industry. The industry median Gross Margin % is 51.16. 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 Credit Services company?
The median Gross Margin % among Credit Services companies is 51.16, based on 390 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 Paragon Finance and its competitors. For the Credit Services industry, the median Gross Margin % is 51.16 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paragon Finance's current Gross Margin % is -1.43%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Paragon Finance stock overvalued right now?
Based on GuruFocus' analysis, Paragon Finance (BOM:531255) is currently considered Fairly Valued. The stock's GF Value™ is ₹48.04, compared to a current price of ₹52.09 — trading 8.4% above its estimated fair value. The current Gross Margin % is -1.43%. Paragon Finance's overall GF Score™ is 59/100 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 Paragon Finance (BOM:531255), the current Gross Margin % is -1.43% 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 Paragon Finance (BOM:531255) Overvalued in 2026?
Based on GuruFocus' analysis, Paragon Finance stock appears to be overvalued.
The current stock price of ₹52.09 is trading 8.4% above its estimated GF Value™ of ₹48.04.
GuruFocus considers Paragon Finance to be Fairly Valued.
Key valuation signals for BOM:531255:
Gross Margin %: -1.43%
GF Value™: ₹48.04 vs. price of ₹52.09 (8.4% above fair value)
No single metric tells the full story. See the BOM:531255 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Paragon Finance Ltd is engaged in providing various credit services. It provides its services in the areas of automobile finance, shares, and real estate. The company provides loans against the security of vehicles, investments in shares and mutual funds, finance business concerns, individuals, and companies. Geographically, the company operates only in the Indian market.
59GF Score
Get the complete analysis for BOM:531255
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
BOM:531255 has been successfully added to your 
