Sharp InvestmentsBOM:538212 +8.33%46 Gross Margin % is 98.48% as of Mar. 2026, which is 22% above its 10-year median of 80.62. GuruFocus rates BOM:538212 with a GF Score™ of 46/100 and a GF Value™ of ₹0.96 (Possible Value Trap). The stock has 2 warning signs investors should review. Among 387 Credit Services companies, Sharp Investments ranks better than 95.87% on this metric.
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
Sharp Investments had a gross margin of 98.48% for the quarter that ended in Mar. 2026 => Durable 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.
Sharp Investments Gross Margin % Related Terms
Sharp Investments Gross Margin % Historical Data
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The historical data trend for Sharp Investments'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:538212 vs V, MA, AXP: Gross Margin % Comparison
For the Credit Services subindustry, Sharp Investments'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.
Sharp Investments Gross Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Sharp Investments's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sharp Investments'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.
Sharp Investments (BOM:538212) has a Gross Margin % of 98.48% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Sharp Investments and its competitors. This is 22% above median its historical median of 80.62. According to the industry distribution chart, Sharp Investments ranks #16 out of 387 companies in the Credit Services industry, placing it in the top 4.1%.
Is Sharp Investments' Gross Margin % too high?
Sharp Investments' current Gross Margin % of 98.48% is 22% above median its 10-year median of 80.62. The Credit Services industry median Gross Margin % is 51.81. Sharp Investments' value of 98.48% is 90.1% above this industry median. Based on the distribution chart, Sharp Investments ranks #16 out of 387 companies in the Credit Services industry, which is in the top quartile — a strong position relative to peers. Overall, Sharp Investments has a GF Score™ of 46/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Sharp Investments' Gross Margin % compare to V and MA?
According to the Credit Services industry distribution chart, Sharp Investments ranks #16 out of 387 companies for Gross Margin %. This places Sharp Investments in the top 4% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 51.81. Sharp Investments' value of 98.48% is 90.1% above this benchmark. While the company's 10-year median is 80.62 vs. the industry median of 51.81, Sharp Investments has consistently been above 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 Credit Services company?
The median Gross Margin % among Credit Services companies is 51.81, based on 387 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. Sharp Investments's current Gross Margin % of 98.48% is 90.1% above 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 Sharp Investments and its competitors. For the Credit Services industry, the median Gross Margin % is 51.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sharp Investments's current Gross Margin % is 98.48%, which is 22% above median its own 10-year median of 80.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sharp Investments stock overvalued right now?
Based on GuruFocus' analysis, Sharp Investments (BOM:538212) is currently considered Possible Value Trap. The stock's GF Value™ is ₹0.96, compared to a current price of ₹0.39 — trading 59.4% below its estimated fair value. The current Gross Margin % is 98.48%, which is 22% above median its 10-year median of 80.62 and 90.1% above the Credit Services industry median of 51.81. Sharp Investments' overall GF Score™ is 46/100 with 2 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 Sharp Investments (BOM:538212), the current Gross Margin % is 98.48% 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 Sharp Investments (BOM:538212) Overvalued in 2026?
Based on GuruFocus' analysis, Sharp Investments stock appears to be undervalued.
The current stock price of ₹0.39 is trading 59.4% below its estimated GF Value™ of ₹0.96.
GuruFocus considers Sharp Investments to be Possible Value Trap.
Key valuation signals for BOM:538212:
Gross Margin %: 98.48% (22% above median its 10-year median of 80.62)
GF Value™: ₹0.96 vs. price of ₹0.39 (59.4% below fair value)
Industry Position: 90.1% above the Credit Services median (#16 of 387)
No single metric tells the full story. See the BOM:538212 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sharp Investments Ltd operates as a non-banking financial services company. The company is focused on providing corporate loans, personal loans, loans against shares and securities, and loans against properties. In addition, it is also engaged in the trading of shares and securities and the arbitrage business in the stock and commodity markets. The company serves financial services such as working capital loans and loans to commercial, industrial, and financial clients. Being an NBFC, the Company has positioned itself between the organized banking sector and local money lenders, offering the customers competitive, flexible, and timely lending services.
46GF Score
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