Ratnabhumi DevelopersBOM:540796 -3.34%85 Gross Margin % is 42.90% as of Mar. 2026, which is 22% below its 10-year median of 54.99. GuruFocus rates BOM:540796 with a GF Score™ of 85/100 and a GF Value™ of ₹182.55 (Fairly Valued). The stock has 8 warning signs investors should review. Among 1,642 Real Estate companies, Ratnabhumi Developers ranks better than 63.15% 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
Ratnabhumi Developers had a gross margin of 42.90% for the quarter that ended in Mar. 2026 => Durable 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.
Ratnabhumi Developers Gross Margin % Related Terms
Ratnabhumi Developers Gross Margin % Historical Data
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The historical data trend for Ratnabhumi Developers'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 Real Estate - Development subindustry, Ratnabhumi Developers'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.
Ratnabhumi Developers Gross Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Ratnabhumi Developers's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ratnabhumi Developers'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.
Ratnabhumi Developers (BOM:540796) has a Gross Margin % of 42.90% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Ratnabhumi Developers and its competitors. This is 22% below median its historical median of 54.99. Over the past decade, Ratnabhumi Developers' Gross Margin % has ranged from 23.13 to 21,522.66. According to the industry distribution chart, Ratnabhumi Developers ranks #605 out of 1642 companies in the Real Estate industry, placing it in the top 36.8%.
Is Ratnabhumi Developers' Gross Margin % too high?
Ratnabhumi Developers' current Gross Margin % of 42.90% is 22% below median its 10-year median of 54.99. Over the past 10 years, this metric has ranged from a low of 23.13 to a high of 21,522.66. The Real Estate industry median Gross Margin % is 36.98. Ratnabhumi Developers' value of 42.90% is 16% above this industry median. Based on the distribution chart, Ratnabhumi Developers ranks #605 out of 1642 companies in the Real Estate industry, which is above the industry midpoint. Overall, Ratnabhumi Developers has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Ratnabhumi Developers' Gross Margin % compare to competitors?
According to the Real Estate industry distribution chart, Ratnabhumi Developers ranks #605 out of 1642 companies for Gross Margin %. This puts Ratnabhumi Developers in the upper half of its industry. The industry median Gross Margin % is 36.98. Ratnabhumi Developers' value of 42.90% is 16% above this benchmark. Historically, Ratnabhumi Developers' own Gross Margin % has ranged from 23.13 to 21,522.66 over the past decade. While the company's 10-year median is 54.99 vs. the industry median of 36.98, Ratnabhumi Developers has consistently been above 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 Real Estate company?
The median Gross Margin % among Real Estate companies is 36.98, based on 1,642 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. Ratnabhumi Developers's current Gross Margin % of 42.90% is 16% above 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 Ratnabhumi Developers and its competitors. For the Real Estate industry, the median Gross Margin % is 36.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ratnabhumi Developers's current Gross Margin % is 42.90%, which is 22% below median its own 10-year median of 54.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ratnabhumi Developers stock overvalued right now?
Based on GuruFocus' analysis, Ratnabhumi Developers (BOM:540796) is currently considered Fairly Valued. The stock's GF Value™ is ₹182.55, compared to a current price of ₹191.00 — trading 4.6% above its estimated fair value. The current Gross Margin % is 42.90%, which is 22% below median its 10-year median of 54.99 and 16% above the Real Estate industry median of 36.98. Ratnabhumi Developers' overall GF Score™ is 85/100 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 Ratnabhumi Developers (BOM:540796), the current Gross Margin % is 42.90% 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 Ratnabhumi Developers (BOM:540796) Overvalued in 2026?
Based on GuruFocus' analysis, Ratnabhumi Developers stock appears to be overvalued.
The current stock price of ₹191.00 is trading 4.6% above its estimated GF Value™ of ₹182.55.
GuruFocus considers Ratnabhumi Developers to be Fairly Valued.
Key valuation signals for BOM:540796:
Gross Margin %: 42.90% (22% below median its 10-year median of 54.99)
GF Value™: ₹182.55 vs. price of ₹191.00 (4.6% above fair value)
Industry Position: 16% above the Real Estate median (#605 of 1642)
No single metric tells the full story. See the BOM:540796 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ratnabhumi Developers Ltd is involved in the business of construction of buildings and other construction-related services, and renting services. It deals with various activities related to real estate development, such as land acquisition, authority liaison, planned development, identification of project types and locations, as well as construction development and maintenance of projects commissioned under residential, commercial, retail, plotting, or industrial segments.
85GF Score
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