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Sonal MercantileBOM:538943 -0.82%69 Gross Margin % is 56.12% as of Mar. 2026, which is 51% above its 10-year median of 37.21. GuruFocus rates BOM:538943 with a GF Score™ of 69/100 and a GF Value™ of ₹111.57 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 388 Credit Services companies, Sonal Mercantile ranks worse than 63.92% 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
Sonal Mercantile had a gross margin of 56.12% 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.
Sonal Mercantile Gross Margin % Related Terms
Sonal Mercantile Gross Margin % Historical Data
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The historical data trend for Sonal Mercantile'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:538943 vs V, MA, AXP: Gross Margin % Comparison
For the Credit Services subindustry, Sonal Mercantile'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.
Sonal Mercantile Gross Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Sonal Mercantile's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sonal Mercantile'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.
Sonal Mercantile (BOM:538943) has a Gross Margin % of 56.12% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Sonal Mercantile and its competitors. This is 51% above median its historical median of 37.21. Over the past decade, Sonal Mercantile's Gross Margin % has ranged from 21.89 to 42.09. According to the industry distribution chart, Sonal Mercantile ranks #248 out of 388 companies in the Credit Services industry, placing it in the top 63.9%.
Is Sonal Mercantile's Gross Margin % too high?
Sonal Mercantile's current Gross Margin % of 56.12% is 51% above median its 10-year median of 37.21. Over the past 10 years, this metric has ranged from a low of 21.89 to a high of 42.09. The Credit Services industry median Gross Margin % is 51.43. Sonal Mercantile's value of 56.12% is 9.1% above this industry median. Based on the distribution chart, Sonal Mercantile ranks #248 out of 388 companies in the Credit Services industry, which is below the industry midpoint. Overall, Sonal Mercantile has a GF Score™ of 69/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sonal Mercantile's Gross Margin % compare to V and MA?
According to the Credit Services industry distribution chart, Sonal Mercantile ranks #248 out of 388 companies for Gross Margin %. This places Sonal Mercantile in the lower half of its industry. The industry median Gross Margin % is 51.43. Sonal Mercantile's value of 56.12% is 9.1% above this benchmark. Historically, Sonal Mercantile's own Gross Margin % has ranged from 21.89 to 42.09 over the past decade. While the company's 10-year median is 37.21 vs. the industry median of 51.43, Sonal Mercantile 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 51.43, based on 388 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. Sonal Mercantile's current Gross Margin % of 56.12% is 9.1% 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 Sonal Mercantile and its competitors. For the Credit Services industry, the median Gross Margin % is 51.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sonal Mercantile's current Gross Margin % is 56.12%, which is 51% above median its own 10-year median of 37.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sonal Mercantile stock overvalued right now?
Based on GuruFocus' analysis, Sonal Mercantile (BOM:538943) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹111.57, compared to a current price of ₹92.21 — trading 17.4% below its estimated fair value. The current Gross Margin % is 56.12%, which is 51% above median its 10-year median of 37.21 and 9.1% above the Credit Services industry median of 51.43. Sonal Mercantile's overall GF Score™ is 69/100 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 Sonal Mercantile (BOM:538943), the current Gross Margin % is 56.12% 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 Sonal Mercantile (BOM:538943) Overvalued in 2026?
Based on GuruFocus' analysis, Sonal Mercantile stock appears to be undervalued.
The current stock price of ₹92.21 is trading 17.4% below its estimated GF Value™ of ₹111.57.
GuruFocus considers Sonal Mercantile to be Modestly Undervalued.
Key valuation signals for BOM:538943:
Gross Margin %: 56.12% (51% above median its 10-year median of 37.21)
GF Value™: ₹111.57 vs. price of ₹92.21 (17.4% below fair value)
Industry Position: 9.1% above the Credit Services median (#248 of 388)
No single metric tells the full story. See the BOM:538943 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sonal Mercantile Ltd is an India-based non-banking financial company. It is engaged in providing secured and unsecured loans and advances and is also involved in investing in quoted and unquoted securities in the stock and commodity markets. The company offers inter-corporate loans, personal loans, long-term and short-term loans, Trade financing, Bills Discounting, Project Appraisal, Loans against Guarantees, and Properties.
69GF Score
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