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Coffee Day EnterprisesBOM:539436 -1.34%67 Gross Margin % is 38.14% as of Mar. 2026, which is 1% above its 10-year median of 37.61. GuruFocus rates BOM:539436 with a GF Score™ of 67/100 and a GF Value™ of ₹42.01 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 354 Restaurants companies, Coffee Day Enterprises ranks worse than 65.25% on this metric.
BOM:539436's Gross Margin % is ranked worse than 65.25% of 354
companies
in the Restaurants industry
Industry Median: 45.685
vs BOM:539436: 35.88
Coffee Day Enterprises had a gross margin of 38.14% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Coffee Day Enterprises was 3.40% per year.
Coffee Day Enterprises (BOM:539436) 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
Coffee Day Enterprises had a gross margin of 38.14% 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.
Coffee Day Enterprises Gross Margin % Related Terms
Coffee Day Enterprises Gross Margin % Historical Data
* Premium members only.
The historical data trend for Coffee Day Enterprises'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:539436 vs MCD, SBUX, YUM: Gross Margin % Comparison
For the Restaurants subindustry, Coffee Day Enterprises'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.
Coffee Day Enterprises Gross Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Coffee Day Enterprises's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Coffee Day Enterprises'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.
Coffee Day Enterprises (BOM:539436) has a Gross Margin % of 38.14% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Coffee Day Enterprises and its competitors. This is near median its historical median of 37.61. Over the past decade, Coffee Day Enterprises' Gross Margin % has ranged from 23.77 to 46.07. According to the industry distribution chart, Coffee Day Enterprises ranks #231 out of 354 companies in the Restaurants industry, placing it in the top 65.3%.
Is Coffee Day Enterprises' Gross Margin % too high?
Coffee Day Enterprises' current Gross Margin % of 38.14% is near median its 10-year median of 37.61. Over the past 10 years, this metric has ranged from a low of 23.77 to a high of 46.07. The Restaurants industry median Gross Margin % is 45.69. Coffee Day Enterprises' value of 38.14% is 16.5% below this industry median. Based on the distribution chart, Coffee Day Enterprises ranks #231 out of 354 companies in the Restaurants industry, which is below the industry midpoint. Overall, Coffee Day Enterprises has a GF Score™ of 67/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Coffee Day Enterprises' Gross Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Coffee Day Enterprises ranks #231 out of 354 companies for Gross Margin %. This places Coffee Day Enterprises in the lower half of its industry. The industry median Gross Margin % is 45.69. Coffee Day Enterprises' value of 38.14% is 16.5% below this benchmark. Historically, Coffee Day Enterprises' own Gross Margin % has ranged from 23.77 to 46.07 over the past decade. While the company's 10-year median is 37.61 vs. the industry median of 45.69, Coffee Day Enterprises 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 Restaurants company?
The median Gross Margin % among Restaurants companies is 45.69, based on 354 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. Coffee Day Enterprises's current Gross Margin % of 38.14% is 16.5% 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 Coffee Day Enterprises and its competitors. For the Restaurants industry, the median Gross Margin % is 45.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Coffee Day Enterprises's current Gross Margin % is 38.14%, which is near median its own 10-year median of 37.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Coffee Day Enterprises stock overvalued right now?
Based on GuruFocus' analysis, Coffee Day Enterprises (BOM:539436) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹42.01, compared to a current price of ₹31.65 — trading 24.7% below its estimated fair value. The current Gross Margin % is 38.14%, which is near median its 10-year median of 37.61 and 16.5% below the Restaurants industry median of 45.69. Coffee Day Enterprises' overall GF Score™ is 67/100 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 Coffee Day Enterprises (BOM:539436), the current Gross Margin % is 38.14% 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 Coffee Day Enterprises (BOM:539436) Overvalued in 2026?
Based on GuruFocus' analysis, Coffee Day Enterprises stock appears to be undervalued.
The current stock price of ₹31.65 is trading 24.7% below its estimated GF Value™ of ₹42.01.
GuruFocus considers Coffee Day Enterprises to be Modestly Undervalued.
Key valuation signals for BOM:539436:
Gross Margin %: 38.14% (near median its 10-year median of 37.61)
GF Value™: ₹42.01 vs. price of ₹31.65 (24.7% below fair value)
Industry Position: 16.5% below the Restaurants median (#231 of 354)
No single metric tells the full story. See the BOM:539436 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Coffee Day Enterprises Ltd owns and operates a resort and renders consultancy services and trading of coffee beans. The Company, through its subsidiaries, associates, and joint venture companies, is engaged in business in multiple sectors such as coffee retail and exports, Leasing of commercial office space, Hospitality, and Information Technology (IT) / Information technology-enabled services (ITeS). It operates through the following business segments: Coffee and related business, Integrated multimodal logistics, Financial services, Leasing of commercial office space, Hospitality services, and Investment and other corporate functions. The vast majority of its revenue is generated within India and has a presence in Europe and Other countries.
67GF Score
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