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Parmax PharmaBOM:540359 +1.99%39 Gross Margin % is 1.79% as of Mar. 2026, which is 95% below its 10-year median of 33.26. GuruFocus rates BOM:540359 with a GF Score™ of 39/100 and a GF Value™ of ₹25.56 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 941 Drug Manufacturers companies, Parmax Pharma ranks worse than 91.92% on this metric.
Parmax Pharma Ltd gross margin has been in long-term decline. The average rate of decline per year is -16.8%.
The historical rank and industry rank for Parmax Pharma's Gross Margin % or its related term are showing as below:
BOM:540359'
s Gross Margin % Range Over the Past 10 Years
Min: 7.76 Med: 33.26 Max: 42.73
Current: 18.42
During the past 13 years, the highestGross Margin % of Parmax Pharma was 42.73%. The lowest was 7.76%. And the median was 33.26%.
BOM:540359's Gross Margin % is ranked worse than 91.92% of 941
companies
in the Drug Manufacturers industry
Industry Median: 48.54
vs BOM:540359: 18.42
Parmax Pharma had a gross margin of 1.79% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Parmax Pharma was -16.80% 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
Parmax Pharma had a gross margin of 1.79% 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.
Parmax Pharma Gross Margin % Related Terms
Parmax Pharma Gross Margin % Historical Data
* Premium members only.
The historical data trend for Parmax Pharma'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:540359 vs ZTS, UTHR: Gross Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Parmax Pharma'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.
Parmax Pharma Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Parmax Pharma's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Parmax Pharma'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.
Parmax Pharma (BOM:540359) has a Gross Margin % of 1.79% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Parmax Pharma and its competitors. This is 95% below median its historical median of 33.26. Over the past decade, Parmax Pharma's Gross Margin % has ranged from 7.76 to 42.73. According to the industry distribution chart, Parmax Pharma ranks #865 out of 941 companies in the Drug Manufacturers industry, placing it in the top 91.9%.
Is Parmax Pharma's Gross Margin % too high?
Parmax Pharma's current Gross Margin % of 1.79% is 95% below median its 10-year median of 33.26. Over the past 10 years, this metric has ranged from a low of 7.76 to a high of 42.73. The Drug Manufacturers industry median Gross Margin % is 48.54. Parmax Pharma's value of 1.79% is 96.3% below this industry median. Based on the distribution chart, Parmax Pharma ranks #865 out of 941 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers. Overall, Parmax Pharma has a GF Score™ of 39/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Parmax Pharma's Gross Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Parmax Pharma ranks #865 out of 941 companies for Gross Margin %. This places Parmax Pharma in the lower half of its industry. The industry median Gross Margin % is 48.54. Parmax Pharma's value of 1.79% is 96.3% below this benchmark. Historically, Parmax Pharma's own Gross Margin % has ranged from 7.76 to 42.73 over the past decade. While the company's 10-year median is 33.26 vs. the industry median of 48.54, Parmax Pharma 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 941 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. Parmax Pharma's current Gross Margin % of 1.79% is 96.3% 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 Parmax Pharma 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. Parmax Pharma's current Gross Margin % is 1.79%, which is 95% below median its own 10-year median of 33.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Parmax Pharma stock overvalued right now?
Based on GuruFocus' analysis, Parmax Pharma (BOM:540359) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹25.56, compared to a current price of ₹102.92 — trading 302.7% above its estimated fair value. The current Gross Margin % is 1.79%, which is 95% below median its 10-year median of 33.26 and 96.3% below the Drug Manufacturers industry median of 48.54. Parmax Pharma's overall GF Score™ is 39/100 with 8 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 Parmax Pharma (BOM:540359), the current Gross Margin % is 1.79% 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 Parmax Pharma (BOM:540359) Overvalued in 2026?
Based on GuruFocus' analysis, Parmax Pharma stock appears to be overvalued.
The current stock price of ₹102.92 is trading 302.7% above its estimated GF Value™ of ₹25.56.
GuruFocus considers Parmax Pharma to be Significantly Overvalued.
Key valuation signals for BOM:540359:
Gross Margin %: 1.79% (95% below median its 10-year median of 33.26)
GF Value™: ₹25.56 vs. price of ₹102.92 (302.7% above fair value)
Industry Position: 96.3% below the Drug Manufacturers median (#865 of 941)
No single metric tells the full story. See the BOM:540359 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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