Shree Ajit Pulp And PaperBOM:538795 +1.85%79 Gross Margin % is 41.60% as of Mar. 2026, which is 9% above its 10-year median of 38.09. GuruFocus rates BOM:538795 with a GF Score™ of 79/100 and a GF Value™ of ₹355.93 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 278 Forest Products companies, Shree Ajit Pulp And Paper ranks better than 79.86% on this metric.
Shree Ajit Pulp And Paper (BOM:538795) Gross Margin % Explanation
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
Shree Ajit Pulp And Paper had a gross margin of 41.60% 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.
Shree Ajit Pulp And Paper Gross Margin % Related Terms
Shree Ajit Pulp And Paper Gross Margin % Historical Data
* 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.
Shree Ajit Pulp And Paper Gross Margin % Competitor Comparison
For the Paper & Paper Products subindustry, Shree Ajit Pulp And Paper'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.
Shree Ajit Pulp And Paper Gross Margin % vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Shree Ajit Pulp And Paper's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Shree Ajit Pulp And Paper'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.
Shree Ajit Pulp And Paper (BOM:538795) has a Gross Margin % of 41.60% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Shree Ajit Pulp And Paper and its competitors. This is near median its historical median of 38.09. Over the past decade, Shree Ajit Pulp And Paper's Gross Margin % has ranged from 31.81 to 43.50. According to the industry distribution chart, Shree Ajit Pulp And Paper ranks #56 out of 278 companies in the Forest Products industry, placing it in the top 20.1%.
Is Shree Ajit Pulp And Paper's Gross Margin % too high?
Shree Ajit Pulp And Paper's current Gross Margin % of 41.60% is near median its 10-year median of 38.09. Over the past 10 years, this metric has ranged from a low of 31.81 to a high of 43.50. The Forest Products industry median Gross Margin % is 18.83. Shree Ajit Pulp And Paper's value of 41.60% is 121% above this industry median. Based on the distribution chart, Shree Ajit Pulp And Paper ranks #56 out of 278 companies in the Forest Products industry, which is in the top quartile — a strong position relative to peers. Overall, Shree Ajit Pulp And Paper has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Shree Ajit Pulp And Paper's Gross Margin % compare to competitors?
According to the Forest Products industry distribution chart, Shree Ajit Pulp And Paper ranks #56 out of 278 companies for Gross Margin %. This places Shree Ajit Pulp And Paper in the top 20% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 18.83. Shree Ajit Pulp And Paper's value of 41.60% is 121% above this benchmark. Historically, Shree Ajit Pulp And Paper's own Gross Margin % has ranged from 31.81 to 43.50 over the past decade. While the company's 10-year median is 38.09 vs. the industry median of 18.83, Shree Ajit Pulp And Paper 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 Forest Products company?
The median Gross Margin % among Forest Products companies is 18.83, based on 278 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. Shree Ajit Pulp And Paper's current Gross Margin % of 41.60% is 121% 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 Shree Ajit Pulp And Paper and its competitors. For the Forest Products industry, the median Gross Margin % is 18.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shree Ajit Pulp And Paper's current Gross Margin % is 41.60%, which is near median its own 10-year median of 38.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shree Ajit Pulp And Paper stock overvalued right now?
Based on GuruFocus' analysis, Shree Ajit Pulp And Paper (BOM:538795) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹355.93, compared to a current price of ₹275.00 — trading 22.7% below its estimated fair value. The current Gross Margin % is 41.60%, which is near median its 10-year median of 38.09 and 121% above the Forest Products industry median of 18.83. Shree Ajit Pulp And Paper's overall GF Score™ is 79/100 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 Shree Ajit Pulp And Paper (BOM:538795), the current Gross Margin % is 41.60% 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 Shree Ajit Pulp And Paper (BOM:538795) Overvalued in 2026?
Based on GuruFocus' analysis, Shree Ajit Pulp And Paper stock appears to be undervalued.
The current stock price of ₹275.00 is trading 22.7% below its estimated GF Value™ of ₹355.93.
GuruFocus considers Shree Ajit Pulp And Paper to be Modestly Undervalued.
Key valuation signals for BOM:538795:
Gross Margin %: 41.60% (near median its 10-year median of 38.09)
GF Value™: ₹355.93 vs. price of ₹275.00 (22.7% below fair value)
Industry Position: 121% above the Forest Products median (#56 of 278)
No single metric tells the full story. See the BOM:538795 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shree Ajit Pulp And Paper Ltd is engaged in the manufacturing of Kraft Paper (Testliner/Multilayer Testliner), which is mainly used for the manufacturing of corrugated boxes. The product includes multilayer test liner and test liner paper, and is available in two shades, which are natural and golden yellow. The Kraft papers of the company are mainly used for making corrugated boxes, duplex cartons, and packaging material. Geographically, the company derives all of its revenue from its business in India.
79GF Score
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