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Franklin Leasing and Finance (BOM:539839) 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
Franklin Leasing and Finance had a gross margin of 28.44% 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.
Franklin Leasing and Finance Gross Margin % Related Terms
Franklin Leasing and Finance 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.
BOM:539839 vs V, MA, AXP: Gross Margin % Comparison
For the Credit Services subindustry, Franklin Leasing and Finance'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.
Franklin Leasing and Finance Gross Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Franklin Leasing and Finance's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Franklin Leasing and Finance'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.
Franklin Leasing and Finance (BOM:539839) has a Gross Margin % of 28.44% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Franklin Leasing and Finance and its competitors. This is 218% above median its historical median of 8.93. Over the past decade, Franklin Leasing and Finance's Gross Margin % has ranged from 3.25 to 22.32.
Is Franklin Leasing and Finance's Gross Margin % too high?
Franklin Leasing and Finance's current Gross Margin % of 28.44% is 218% above median its 10-year median of 8.93. Over the past 10 years, this metric has ranged from a low of 3.25 to a high of 22.32. The Credit Services industry median Gross Margin % is 51.85. Franklin Leasing and Finance's value of 28.44% is 45.1% below this industry median. Overall, Franklin Leasing and Finance has a GF Score™ of 72/100, reflecting its overall financial health beyond just this single metric.
How does Franklin Leasing and Finance's Gross Margin % compare to V and MA?
Franklin Leasing and Finance's Gross Margin % of 28.44% can be compared against companies in the Credit Services industry. The industry median Gross Margin % is 51.85. Franklin Leasing and Finance's value of 28.44% is 45.1% below this benchmark. Historically, Franklin Leasing and Finance's own Gross Margin % has ranged from 3.25 to 22.32 over the past decade. While the company's 10-year median is 8.93 vs. the industry median of 51.85, Franklin Leasing and Finance 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 Credit Services company?
The median Gross Margin % among Credit Services companies is 51.85, 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. Franklin Leasing and Finance's current Gross Margin % of 28.44% is 45.1% 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 Franklin Leasing and Finance and its competitors. For the Credit Services industry, the median Gross Margin % is 51.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Franklin Leasing and Finance's current Gross Margin % is 28.44%, which is 218% above median its own 10-year median of 8.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Franklin Leasing and Finance stock overvalued right now?
Franklin Leasing and Finance (BOM:539839) has a current Gross Margin % of 28.44%. The stock's GF Value™ is ₹12.99, compared to a current price of ₹8.92 — trading 31.3% below its estimated fair value. The current Gross Margin % is 28.44%, which is 218% above median its 10-year median of 8.93 and 45.1% below the Credit Services industry median of 51.85. Franklin Leasing and Finance's overall GF Score™ is 72/100 with 6 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 Franklin Leasing and Finance (BOM:539839), the current Gross Margin % is 28.44% 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 Franklin Leasing and Finance (BOM:539839) Overvalued in 2026?
Based on GuruFocus' analysis, Franklin Leasing and Finance stock appears to be undervalued.
The current stock price of ₹8.92 is trading 31.3% below its estimated GF Value™ of ₹12.99.
Key valuation signals for BOM:539839:
Gross Margin %: 28.44% (218% above median its 10-year median of 8.93)
GF Value™: ₹12.99 vs. price of ₹8.92 (31.3% below fair value)
Industry Position: 45.1% below the Credit Services median
No single metric tells the full story. See the BOM:539839 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Franklin Leasing and Finance Ltd is a non-banking financial company. It is engaged in advancing loans and investing/trading in securities. It offers inter-corporate deposits, loans against property, personal loans, and unsecured loans. The group operates in segments of investment in securities and extending financial loan services.
72GF Score
Get the complete analysis for BOM:539839
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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