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Riddhi Steel and TubeBOM:540082 50 Gross Margin % is 9.42% as of Mar. 2026, which is 2% above its 10-year median of 9.25. GuruFocus rates BOM:540082 with a GF Score™ of 50/100 and a GF Value™ of ₹85.54 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 594 Steel companies, Riddhi Steel and Tube ranks worse than 63.97% on this metric.
BOM:540082's Gross Margin % is ranked worse than 63.97% of 594
companies
in the Steel industry
Industry Median: 12.55
vs BOM:540082: 9.05
Riddhi Steel and Tube had a gross margin of 9.42% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Riddhi Steel and Tube was 0.10% per year.
Riddhi Steel and Tube (BOM:540082) 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
Riddhi Steel and Tube had a gross margin of 9.42% for the quarter that ended in Mar. 2026 => No sustainable 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.
Riddhi Steel and Tube Gross Margin % Related Terms
Riddhi Steel and Tube Gross Margin % Historical Data
* Premium members only.
The historical data trend for Riddhi Steel and Tube'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:540082 vs NUE, STLD, RS: Gross Margin % Comparison
For the Steel subindustry, Riddhi Steel and Tube'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.
Riddhi Steel and Tube Gross Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Riddhi Steel and Tube's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Riddhi Steel and Tube'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.
Riddhi Steel and Tube (BOM:540082) has a Gross Margin % of 9.42% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Riddhi Steel and Tube and its competitors. This is near median its historical median of 9.25. Over the past decade, Riddhi Steel and Tube's Gross Margin % has ranged from 7.26 to 11.26. According to the industry distribution chart, Riddhi Steel and Tube ranks #380 out of 594 companies in the Steel industry, placing it in the top 64%.
Is Riddhi Steel and Tube's Gross Margin % too high?
Riddhi Steel and Tube's current Gross Margin % of 9.42% is near median its 10-year median of 9.25. Over the past 10 years, this metric has ranged from a low of 7.26 to a high of 11.26. The Steel industry median Gross Margin % is 12.55. Riddhi Steel and Tube's value of 9.42% is 24.9% below this industry median. Based on the distribution chart, Riddhi Steel and Tube ranks #380 out of 594 companies in the Steel industry, which is below the industry midpoint. Overall, Riddhi Steel and Tube has a GF Score™ of 50/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Riddhi Steel and Tube's Gross Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Riddhi Steel and Tube ranks #380 out of 594 companies for Gross Margin %. This places Riddhi Steel and Tube in the lower half of its industry. The industry median Gross Margin % is 12.55. Riddhi Steel and Tube's value of 9.42% is 24.9% below this benchmark. Historically, Riddhi Steel and Tube's own Gross Margin % has ranged from 7.26 to 11.26 over the past decade. While the company's 10-year median is 9.25 vs. the industry median of 12.55, Riddhi Steel and Tube 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 Steel company?
The median Gross Margin % among Steel companies is 12.55, based on 594 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. Riddhi Steel and Tube's current Gross Margin % of 9.42% is 24.9% 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 Riddhi Steel and Tube and its competitors. For the Steel industry, the median Gross Margin % is 12.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Riddhi Steel and Tube's current Gross Margin % is 9.42%, which is near median its own 10-year median of 9.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Riddhi Steel and Tube stock overvalued right now?
Based on GuruFocus' analysis, Riddhi Steel and Tube (BOM:540082) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹85.54, compared to a current price of ₹196.40 — trading 129.6% above its estimated fair value. The current Gross Margin % is 9.42%, which is near median its 10-year median of 9.25 and 24.9% below the Steel industry median of 12.55. Riddhi Steel and Tube's overall GF Score™ is 50/100 with 1 warning sign 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 Riddhi Steel and Tube (BOM:540082), the current Gross Margin % is 9.42% 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 Riddhi Steel and Tube (BOM:540082) Overvalued in 2026?
Based on GuruFocus' analysis, Riddhi Steel and Tube stock appears to be overvalued.
The current stock price of ₹196.40 is trading 129.6% above its estimated GF Value™ of ₹85.54.
GuruFocus considers Riddhi Steel and Tube to be Significantly Overvalued.
Key valuation signals for BOM:540082:
Gross Margin %: 9.42% (near median its 10-year median of 9.25)
GF Value™: ₹85.54 vs. price of ₹196.40 (129.6% above fair value)
Industry Position: 24.9% below the Steel median (#380 of 594)
No single metric tells the full story. See the BOM:540082 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Riddhi Steel and Tube Ltd is engaged in manufacturing and galvanised steel pipes in various sizes, tubes, and hollow profiles and of tube and pipe fittings of cast iron or cast steel. The product line of the company includes MS Black Pipes, Pre-Galvanised Pipes, and Galvanised Pipes, which are used in agriculture, industry, and construction activities like scaffolding and casing in bore wells; Square and Rectangular Hollow Sections used in engineering applications, Pre-Galvanised Pipes used by various manufacturers. The company generates all of its revenue from Domestic sales.
50GF Score
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