Purshottam InvestofinBOM:538647 -1.97%52 Gross Margin % is 85.68% as of Mar. 2026, which is 136% above its 10-year median of 36.32. GuruFocus rates BOM:538647 with a GF Score™ of 52/100 and a GF Value™ of ₹13.82 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 618 Capital Markets companies, Purshottam Investofin ranks better than 87.54% 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
Purshottam Investofin had a gross margin of 85.68% 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.
Purshottam Investofin Gross Margin % Related Terms
Purshottam Investofin Gross Margin % Historical Data
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The historical data trend for Purshottam Investofin'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:538647 vs MS, GS, SCHW: Gross Margin % Comparison
For the Capital Markets subindustry, Purshottam Investofin'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.
Purshottam Investofin Gross Margin % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Purshottam Investofin's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Purshottam Investofin'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.
Purshottam Investofin (BOM:538647) has a Gross Margin % of 85.68% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Purshottam Investofin and its competitors. This is 136% above median its historical median of 36.32. According to the industry distribution chart, Purshottam Investofin ranks #77 out of 618 companies in the Capital Markets industry, placing it in the top 12.5%.
Is Purshottam Investofin's Gross Margin % too high?
Purshottam Investofin's current Gross Margin % of 85.68% is 136% above median its 10-year median of 36.32. The Capital Markets industry median Gross Margin % is 49.87. Purshottam Investofin's value of 85.68% is 71.8% above this industry median. Based on the distribution chart, Purshottam Investofin ranks #77 out of 618 companies in the Capital Markets industry, which is in the top quartile — a strong position relative to peers. Overall, Purshottam Investofin has a GF Score™ of 52/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Purshottam Investofin's Gross Margin % compare to MS and GS?
According to the Capital Markets industry distribution chart, Purshottam Investofin ranks #77 out of 618 companies for Gross Margin %. This places Purshottam Investofin in the top 13% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 49.87. Purshottam Investofin's value of 85.68% is 71.8% above this benchmark. While the company's 10-year median is 36.32 vs. the industry median of 49.87, Purshottam Investofin 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 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. Purshottam Investofin's current Gross Margin % of 85.68% is 71.8% 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 Purshottam Investofin 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. Purshottam Investofin's current Gross Margin % is 85.68%, which is 136% above median its own 10-year median of 36.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Purshottam Investofin stock overvalued right now?
Based on GuruFocus' analysis, Purshottam Investofin (BOM:538647) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹13.82, compared to a current price of ₹35.27 — trading 155.2% above its estimated fair value. The current Gross Margin % is 85.68%, which is 136% above median its 10-year median of 36.32 and 71.8% above the Capital Markets industry median of 49.87. Purshottam Investofin's overall GF Score™ is 52/100 with 4 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 Purshottam Investofin (BOM:538647), the current Gross Margin % is 85.68% 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 Purshottam Investofin (BOM:538647) Overvalued in 2026?
Based on GuruFocus' analysis, Purshottam Investofin stock appears to be overvalued.
The current stock price of ₹35.27 is trading 155.2% above its estimated GF Value™ of ₹13.82.
GuruFocus considers Purshottam Investofin to be Significantly Overvalued.
Key valuation signals for BOM:538647:
Gross Margin %: 85.68% (136% above median its 10-year median of 36.32)
GF Value™: ₹13.82 vs. price of ₹35.27 (155.2% above fair value)
Industry Position: 71.8% above the Capital Markets median (#77 of 618)
No single metric tells the full story. See the BOM:538647 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Purshottam Investofin Ltd is an Indian non-banking finance company. It is engaged in the business of trading in securities and providing loans to micro, small, and medium enterprises, and individuals with proprietary businesses. The company also offers advisory services. The majority of its revenue is generated in the form of interest income.
52GF Score
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