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SMT EngineeringBOM:538563 +4.99%53 Gross Margin % is 39.43% as of Mar. 2026, which is 381% above its 10-year median of 8.19. GuruFocus rates BOM:538563 with a GF Score™ of 53/100 and a GF Value™ of ₹283.14 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 620 Capital Markets companies, SMT Engineering ranks worse than 54.35% 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
SMT Engineering had a gross margin of 39.43% 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.
SMT Engineering Gross Margin % Related Terms
SMT Engineering Gross Margin % Historical Data
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The historical data trend for SMT Engineering'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:538563 vs MS, GS, SCHW: Gross Margin % Comparison
For the Capital Markets subindustry, SMT Engineering'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.
SMT Engineering Gross Margin % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, SMT Engineering's Gross Margin % distribution charts can be found below:
* The bar in red indicates where SMT Engineering'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.
SMT Engineering (BOM:538563) has a Gross Margin % of 39.43% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on SMT Engineering and its competitors. This is 381% above median its historical median of 8.19. According to the industry distribution chart, SMT Engineering ranks #337 out of 620 companies in the Capital Markets industry, placing it in the top 54.4%.
Is SMT Engineering's Gross Margin % too high?
SMT Engineering's current Gross Margin % of 39.43% is 381% above median its 10-year median of 8.19. The Capital Markets industry median Gross Margin % is 49.87. SMT Engineering's value of 39.43% is 20.9% below this industry median. Based on the distribution chart, SMT Engineering ranks #337 out of 620 companies in the Capital Markets industry, which is below the industry midpoint. Overall, SMT Engineering has a GF Score™ of 53/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SMT Engineering's Gross Margin % compare to MS and GS?
According to the Capital Markets industry distribution chart, SMT Engineering ranks #337 out of 620 companies for Gross Margin %. This places SMT Engineering in the lower half of its industry. The industry median Gross Margin % is 49.87. SMT Engineering's value of 39.43% is 20.9% below this benchmark. While the company's 10-year median is 8.19 vs. the industry median of 49.87, SMT Engineering 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 Capital Markets company?
The median Gross Margin % among Capital Markets companies is 49.87, based on 620 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. SMT Engineering's current Gross Margin % of 39.43% is 20.9% 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 SMT Engineering 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. SMT Engineering's current Gross Margin % is 39.43%, which is 381% above median its own 10-year median of 8.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SMT Engineering stock overvalued right now?
Based on GuruFocus' analysis, SMT Engineering (BOM:538563) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹283.14, compared to a current price of ₹466.00 — trading 64.6% above its estimated fair value. The current Gross Margin % is 39.43%, which is 381% above median its 10-year median of 8.19 and 20.9% below the Capital Markets industry median of 49.87. SMT Engineering's overall GF Score™ is 53/100 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 SMT Engineering (BOM:538563), the current Gross Margin % is 39.43% 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 SMT Engineering (BOM:538563) Overvalued in 2026?
Based on GuruFocus' analysis, SMT Engineering stock appears to be overvalued.
The current stock price of ₹466.00 is trading 64.6% above its estimated GF Value™ of ₹283.14.
GuruFocus considers SMT Engineering to be Significantly Overvalued.
Key valuation signals for BOM:538563:
Gross Margin %: 39.43% (381% above median its 10-year median of 8.19)
GF Value™: ₹283.14 vs. price of ₹466.00 (64.6% above fair value)
Industry Position: 20.9% below the Capital Markets median (#337 of 620)
No single metric tells the full story. See the BOM:538563 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SMT Engineering Ltd and its subsidiaries, the Group, operate in share trading, manufacturing plastic processing machinery globally, and other businesses. Through its subsidiary, the company specializes in HDPE and PVC extrusion systems, drip irrigation solutions, and related plastic pipe manufacturing machinery, with CNC facilities in Indore, India. The company is also engaged in trading commodities and investing in mutual funds, shares, and securities, with the majority of its revenue generated from sales of shares and securities.
53GF Score
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