Fredun PharmaceuticalsBOM:539730 -0.42%73 Gross Margin % is 25.81% as of Mar. 2026, which is 10% above its 10-year median of 23.44. GuruFocus rates BOM:539730 with a GF Score™ of 73/100 and a GF Value™ of ₹1,586.25 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 938 Drug Manufacturers companies, Fredun Pharmaceuticals ranks worse than 85.29% on this metric.
BOM:539730's Gross Margin % is ranked worse than 85.29% of 938
companies
in the Drug Manufacturers industry
Industry Median: 48.54
vs BOM:539730: 26.62
Fredun Pharmaceuticals had a gross margin of 25.81% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Fredun Pharmaceuticals was 7.90% per year.
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
Fredun Pharmaceuticals had a gross margin of 25.81% 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.
Fredun Pharmaceuticals Gross Margin % Related Terms
Fredun Pharmaceuticals Gross Margin % Historical Data
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The historical data trend for Fredun Pharmaceuticals'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:539730 vs ZTS, UTHR: Gross Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Fredun Pharmaceuticals'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.
Fredun Pharmaceuticals Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Fredun Pharmaceuticals's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Fredun Pharmaceuticals'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.
Fredun Pharmaceuticals (BOM:539730) has a Gross Margin % of 25.81% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Fredun Pharmaceuticals and its competitors. This is 10% above median its historical median of 23.44. Over the past decade, Fredun Pharmaceuticals' Gross Margin % has ranged from 17.20 to 32.68. According to the industry distribution chart, Fredun Pharmaceuticals ranks #800 out of 938 companies in the Drug Manufacturers industry, placing it in the top 85.3%.
Is Fredun Pharmaceuticals' Gross Margin % too high?
Fredun Pharmaceuticals' current Gross Margin % of 25.81% is 10% above median its 10-year median of 23.44. Over the past 10 years, this metric has ranged from a low of 17.20 to a high of 32.68. The Drug Manufacturers industry median Gross Margin % is 48.54. Fredun Pharmaceuticals' value of 25.81% is 46.8% below this industry median. Based on the distribution chart, Fredun Pharmaceuticals ranks #800 out of 938 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers. Overall, Fredun Pharmaceuticals has a GF Score™ of 73/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Fredun Pharmaceuticals' Gross Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Fredun Pharmaceuticals ranks #800 out of 938 companies for Gross Margin %. This places Fredun Pharmaceuticals in the lower half of its industry. The industry median Gross Margin % is 48.54. Fredun Pharmaceuticals' value of 25.81% is 46.8% below this benchmark. Historically, Fredun Pharmaceuticals' own Gross Margin % has ranged from 17.20 to 32.68 over the past decade. While the company's 10-year median is 23.44 vs. the industry median of 48.54, Fredun Pharmaceuticals 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 Drug Manufacturers company?
The median Gross Margin % among Drug Manufacturers companies is 48.54, based on 938 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. Fredun Pharmaceuticals's current Gross Margin % of 25.81% is 46.8% 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 Fredun Pharmaceuticals and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fredun Pharmaceuticals's current Gross Margin % is 25.81%, which is 10% above median its own 10-year median of 23.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fredun Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Fredun Pharmaceuticals (BOM:539730) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹1,586.25, compared to a current price of ₹2,578.60 — trading 62.6% above its estimated fair value. The current Gross Margin % is 25.81%, which is 10% above median its 10-year median of 23.44 and 46.8% below the Drug Manufacturers industry median of 48.54. Fredun Pharmaceuticals' overall GF Score™ is 73/100 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 Fredun Pharmaceuticals (BOM:539730), the current Gross Margin % is 25.81% 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 Fredun Pharmaceuticals (BOM:539730) Overvalued in 2026?
Based on GuruFocus' analysis, Fredun Pharmaceuticals stock appears to be overvalued.
The current stock price of ₹2,578.60 is trading 62.6% above its estimated GF Value™ of ₹1,586.25.
GuruFocus considers Fredun Pharmaceuticals to be Significantly Overvalued.
Key valuation signals for BOM:539730:
Gross Margin %: 25.81% (10% above median its 10-year median of 23.44)
GF Value™: ₹1,586.25 vs. price of ₹2,578.60 (62.6% above fair value)
Industry Position: 46.8% below the Drug Manufacturers median (#800 of 938)
No single metric tells the full story. See the BOM:539730 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fredun Pharmaceuticals Ltd in its Endeavour to move ahead has now ventured into manufacturing of dietary /herbal supplements, nutraceuticals, and other healthcare products along with Animal Healthcare products also with products ranging from allopathic formulations to on field diagnostic kits, Company's main objective is to be a holistic healthcare provider. The group is dedicated to improving lives of people. The Company operates only in a single segment i.e. Pharmaceutical Segment. The company has presence in Domestic as well as International market. The company generates majority of revenue from Domestic market.
73GF Score
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