Sharika EnterprisesBOM:540786 -4.41%69 Gross Margin % is 3.14% as of Mar. 2026, which is 86% below its 10-year median of 21.90. GuruFocus rates BOM:540786 with a GF Score™ of 69/100 and a GF Value™ of ₹13.69 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,717 Construction companies, Sharika Enterprises ranks worse than 94.12% on this metric.
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
Sharika Enterprises had a gross margin of 3.14% 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.
Sharika Enterprises Gross Margin % Related Terms
Sharika Enterprises Gross Margin % Historical Data
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The historical data trend for Sharika Enterprises'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:540786 vs PWR, FIX, EME: Gross Margin % Comparison
For the Engineering & Construction subindustry, Sharika Enterprises'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.
Sharika Enterprises Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Sharika Enterprises's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Sharika Enterprises'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.
Sharika Enterprises (BOM:540786) has a Gross Margin % of 3.14% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Sharika Enterprises and its competitors. This is 86% below median its historical median of 21.90. Over the past decade, Sharika Enterprises' Gross Margin % has ranged from 3.11 to 55.10. According to the industry distribution chart, Sharika Enterprises ranks #1616 out of 1717 companies in the Construction industry, placing it in the top 94.1%.
Is Sharika Enterprises' Gross Margin % too high?
Sharika Enterprises' current Gross Margin % of 3.14% is 86% below median its 10-year median of 21.90. Over the past 10 years, this metric has ranged from a low of 3.11 to a high of 55.10. The Construction industry median Gross Margin % is 20.73. Sharika Enterprises' value of 3.14% is 84.9% below this industry median. Based on the distribution chart, Sharika Enterprises ranks #1616 out of 1717 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, Sharika Enterprises has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sharika Enterprises' Gross Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Sharika Enterprises ranks #1616 out of 1717 companies for Gross Margin %. This places Sharika Enterprises in the lower half of its industry. The industry median Gross Margin % is 20.73. Sharika Enterprises' value of 3.14% is 84.9% below this benchmark. Historically, Sharika Enterprises' own Gross Margin % has ranged from 3.11 to 55.10 over the past decade. While the company's 10-year median is 21.90 vs. the industry median of 20.73, Sharika Enterprises 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 Construction company?
The median Gross Margin % among Construction companies is 20.73, based on 1,717 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. Sharika Enterprises's current Gross Margin % of 3.14% is 84.9% 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 Sharika Enterprises and its competitors. For the Construction industry, the median Gross Margin % is 20.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sharika Enterprises's current Gross Margin % is 3.14%, which is 86% below median its own 10-year median of 21.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sharika Enterprises stock overvalued right now?
Based on GuruFocus' analysis, Sharika Enterprises (BOM:540786) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹13.69, compared to a current price of ₹18.88 — trading 37.9% above its estimated fair value. The current Gross Margin % is 3.14%, which is 86% below median its 10-year median of 21.90 and 84.9% below the Construction industry median of 20.73. Sharika Enterprises' overall GF Score™ is 69/100 with 7 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 Sharika Enterprises (BOM:540786), the current Gross Margin % is 3.14% 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 Sharika Enterprises (BOM:540786) Overvalued in 2026?
Based on GuruFocus' analysis, Sharika Enterprises stock appears to be overvalued.
The current stock price of ₹18.88 is trading 37.9% above its estimated GF Value™ of ₹13.69.
GuruFocus considers Sharika Enterprises to be Significantly Overvalued.
Key valuation signals for BOM:540786:
Gross Margin %: 3.14% (86% below median its 10-year median of 21.90)
GF Value™: ₹13.69 vs. price of ₹18.88 (37.9% above fair value)
Industry Position: 84.9% below the Construction median (#1616 of 1717)
No single metric tells the full story. See the BOM:540786 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sharika Enterprises Ltd company is engaged in the business of Management Consultancy & Project Execution services mainly in the power sector for Indian and International Power Equipment Manufacturers. The company is also involved in trading of Electrical items comprising of LED lights and other related products and components. Its operations also include a composite range of activities comprising of engineering, procurement, construction, and servicing, etc of Power plants and equipments.
69GF Score
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