Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Chothani FoodsBOM:540681 55 Gross Margin % is 13.58% as of Mar. 2026, which is 21% below its 10-year median of 17.16. GuruFocus rates BOM:540681 with a GF Score™ of 55/100 and a GF Value™ of ₹16.43 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 1,910 Consumer Packaged Goods companies, Chothani Foods ranks worse than 71.41% on this metric.
Chothani Foods Ltd gross margin has been in long-term decline. The average rate of decline per year is -3.2%.
The historical rank and industry rank for Chothani Foods's Gross Margin % or its related term are showing as below:
BOM:540681'
s Gross Margin % Range Over the Past 10 Years
Min: 13.4 Med: 17.16 Max: 26.25
Current: 16.99
During the past 13 years, the highestGross Margin % of Chothani Foods was 26.25%. The lowest was 13.40%. And the median was 17.16%.
BOM:540681's Gross Margin % is ranked worse than 71.41% of 1910
companies
in the Consumer Packaged Goods industry
Industry Median: 26.37
vs BOM:540681: 16.99
Chothani Foods had a gross margin of 13.58% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Chothani Foods was -3.20% 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
Chothani Foods had a gross margin of 13.58% 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.
Chothani Foods Gross Margin % Related Terms
Chothani Foods Gross Margin % Historical Data
* Premium members only.
The historical data trend for Chothani Foods'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.
For the Packaged Foods subindustry, Chothani Foods'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.
Chothani Foods Gross Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Chothani Foods's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Chothani Foods'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.
Chothani Foods (BOM:540681) has a Gross Margin % of 13.58% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Chothani Foods and its competitors. This is 21% below median its historical median of 17.16. Over the past decade, Chothani Foods' Gross Margin % has ranged from 13.40 to 26.25. According to the industry distribution chart, Chothani Foods ranks #1364 out of 1910 companies in the Consumer Packaged Goods industry, placing it in the top 71.4%.
Is Chothani Foods' Gross Margin % too high?
Chothani Foods' current Gross Margin % of 13.58% is 21% below median its 10-year median of 17.16. Over the past 10 years, this metric has ranged from a low of 13.40 to a high of 26.25. The Consumer Packaged Goods industry median Gross Margin % is 26.37. Chothani Foods' value of 13.58% is 48.5% below this industry median. Based on the distribution chart, Chothani Foods ranks #1364 out of 1910 companies in the Consumer Packaged Goods industry, which is below the industry midpoint. Overall, Chothani Foods has a GF Score™ of 55/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Chothani Foods' Gross Margin % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Chothani Foods ranks #1364 out of 1910 companies for Gross Margin %. This places Chothani Foods in the lower half of its industry. The industry median Gross Margin % is 26.37. Chothani Foods' value of 13.58% is 48.5% below this benchmark. Historically, Chothani Foods' own Gross Margin % has ranged from 13.40 to 26.25 over the past decade. While the company's 10-year median is 17.16 vs. the industry median of 26.37, Chothani Foods 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 Consumer Packaged Goods company?
The median Gross Margin % among Consumer Packaged Goods companies is 26.37, based on 1,910 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. Chothani Foods's current Gross Margin % of 13.58% is 48.5% 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 Chothani Foods and its competitors. For the Consumer Packaged Goods industry, the median Gross Margin % is 26.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chothani Foods's current Gross Margin % is 13.58%, which is 21% below median its own 10-year median of 17.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chothani Foods stock overvalued right now?
Based on GuruFocus' analysis, Chothani Foods (BOM:540681) is currently considered Possible Value Trap. The stock's GF Value™ is ₹16.43, compared to a current price of ₹8.30 — trading 49.5% below its estimated fair value. The current Gross Margin % is 13.58%, which is 21% below median its 10-year median of 17.16 and 48.5% below the Consumer Packaged Goods industry median of 26.37. Chothani Foods' overall GF Score™ is 55/100 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 Chothani Foods (BOM:540681), the current Gross Margin % is 13.58% 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 Chothani Foods (BOM:540681) Overvalued in 2026?
Based on GuruFocus' analysis, Chothani Foods stock appears to be undervalued.
The current stock price of ₹8.30 is trading 49.5% below its estimated GF Value™ of ₹16.43.
GuruFocus considers Chothani Foods to be Possible Value Trap.
Key valuation signals for BOM:540681:
Gross Margin %: 13.58% (21% below median its 10-year median of 17.16)
GF Value™: ₹16.43 vs. price of ₹8.30 (49.5% below fair value)
Industry Position: 48.5% below the Consumer Packaged Goods median (#1364 of 1910)
No single metric tells the full story. See the BOM:540681 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chothani Foods Ltd is engaged in manufacturing and supplying different types of spices. The company has two brands APPU MASALA and GAYATRI MASALA. With more than 30 types of Spices and Masalas like Pav Bhaji Masala, Chaat Masala, Tea Masala, Garam Masala, Sambhar Masala, Punjabi Chole Masala, Biryani and Pulav Masala, Kitchen King Masala and various Powders like Red Chilli Powder, Jeera Powder, White Pepper Powder, Turmeric Powder, etc.
55GF Score
Get the complete analysis for BOM:540681
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
BOM:540681 has been successfully added to your 
