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BOM:540181's Gross Margin % is ranked worse than 95.87% of 387
companies
in the Credit Services industry
Industry Median: 51.81
vs BOM:540181: -58.38
Salem Erode Investments had a gross margin of -101.60% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Salem Erode Investments was 0.00% per year.
Salem Erode Investments (BOM:540181) 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
Salem Erode Investments had a gross margin of -101.60% 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.
Salem Erode Investments Gross Margin % Related Terms
Salem Erode Investments 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:540181 vs V, MA, AXP: Gross Margin % Comparison
For the Credit Services subindustry, Salem Erode Investments'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.
Salem Erode Investments Gross Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Salem Erode Investments's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Salem Erode Investments'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.
Salem Erode Investments (BOM:540181) has a Gross Margin % of -101.60% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Salem Erode Investments and its competitors. According to the industry distribution chart, Salem Erode Investments ranks #371 out of 387 companies in the Credit Services industry, placing it in the top 95.9%.
Is Salem Erode Investments' Gross Margin % too high?
Salem Erode Investments' current Gross Margin % is -101.60%. Based on the distribution chart, Salem Erode Investments ranks #371 out of 387 companies in the Credit Services industry, which is in the bottom quartile relative to peers. Overall, Salem Erode Investments has a GF Score™ of 52/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Salem Erode Investments' Gross Margin % compare to V and MA?
According to the Credit Services industry distribution chart, Salem Erode Investments ranks #371 out of 387 companies for Gross Margin %. This places Salem Erode Investments in the lower half of its industry. The industry median Gross Margin % is 51.81. 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 51.81, based on 387 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. 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 Salem Erode Investments and its competitors. For the Credit Services industry, the median Gross Margin % is 51.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Salem Erode Investments's current Gross Margin % is -101.60%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Salem Erode Investments stock overvalued right now?
Based on GuruFocus' analysis, Salem Erode Investments (BOM:540181) is currently considered Fairly Valued. The stock's GF Value™ is ₹37.07, compared to a current price of ₹38.30 — trading 3.3% above its estimated fair value. The current Gross Margin % is -101.60%. Salem Erode Investments' overall GF Score™ is 52/100 with 5 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 Salem Erode Investments (BOM:540181), the current Gross Margin % is -101.60% 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 Salem Erode Investments (BOM:540181) Overvalued in 2026?
Based on GuruFocus' analysis, Salem Erode Investments stock appears to be overvalued.
The current stock price of ₹38.30 is trading 3.3% above its estimated GF Value™ of ₹37.07.
GuruFocus considers Salem Erode Investments to be Fairly Valued.
Key valuation signals for BOM:540181:
Gross Margin %: -101.60%
GF Value™: ₹37.07 vs. price of ₹38.30 (3.3% above fair value)
No single metric tells the full story. See the BOM:540181 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Salem Erode Investments Ltd is engaged in the lending and investment business in India. It is a finance company that helps to secure the future financially and helps in the financial crisis. The company invests in listed and unlisted equity shares, debt instruments of companies in a wide range of industries, and mutual funds. It also lends money with or without security. The company generates revenue from interest income and dividends.
52GF Score
Get the complete analysis for BOM:540181
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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