SRU SteelsBOM:540914 +2.50%54 Gross Margin % is 6.35% as of Dec. 2025, which is 4% below its 10-year median of 6.60. GuruFocus rates BOM:540914 with a GF Score™ of 54/100 and a GF Value™ of ₹5.96 (Possible Value Trap). The stock has 9 warning signs investors should review. Among 592 Steel companies, SRU Steels ranks worse than 81.59% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. SRU Steels's Gross Profit for the
three
months ended in Dec. 2025 was ₹0.8 Mil. SRU Steels's Revenue for the
three
months ended in Dec. 2025 was ₹11.8 Mil. Therefore, SRU Steels's Gross Margin % for the quarter that ended in Dec. 2025 was 6.35%.
Warning Sign:
SRU Steels Ltd gross margin has been in long-term decline. The average rate of decline per year is -17.9%.
The historical rank and industry rank for SRU Steels's Gross Margin % or its related term are showing as below:
BOM:540914'
s Gross Margin % Range Over the Past 10 Years
Min: 1.97 Med: 6.6 Max: 11.54
Current: 4.79
During the past 13 years, the highestGross Margin % of SRU Steels was 11.54%. The lowest was 1.97%. And the median was 6.60%.
BOM:540914's Gross Margin % is ranked worse than 81.59% of 592
companies
in the Steel industry
Industry Median: 12.55
vs BOM:540914: 4.79
SRU Steels had a gross margin of 6.35% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for SRU Steels was -17.90% 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
SRU Steels had a gross margin of 6.35% for the quarter that ended in Dec. 2025 => 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.
SRU Steels Gross Margin % Related Terms
SRU Steels Gross Margin % Historical Data
* Premium members only.
The historical data trend for SRU Steels'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:540914 vs NUE, STLD, RS: Gross Margin % Comparison
For the Steel subindustry, SRU Steels'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.
SRU Steels Gross Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, SRU Steels's Gross Margin % distribution charts can be found below:
* The bar in red indicates where SRU Steels'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.
SRU Steels (BOM:540914) has a Gross Margin % of 6.35% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on SRU Steels and its competitors. This is near median its historical median of 6.60. Over the past decade, SRU Steels' Gross Margin % has ranged from 1.97 to 11.54. According to the industry distribution chart, SRU Steels ranks #483 out of 592 companies in the Steel industry, placing it in the top 81.6%.
Is SRU Steels' Gross Margin % too high?
SRU Steels' current Gross Margin % of 6.35% is near median its 10-year median of 6.60. Over the past 10 years, this metric has ranged from a low of 1.97 to a high of 11.54. The Steel industry median Gross Margin % is 12.55. SRU Steels' value of 6.35% is 49.4% below this industry median. Based on the distribution chart, SRU Steels ranks #483 out of 592 companies in the Steel industry, which is in the bottom quartile relative to peers. Overall, SRU Steels has a GF Score™ of 54/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does SRU Steels' Gross Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, SRU Steels ranks #483 out of 592 companies for Gross Margin %. This places SRU Steels in the lower half of its industry. The industry median Gross Margin % is 12.55. SRU Steels' value of 6.35% is 49.4% below this benchmark. Historically, SRU Steels' own Gross Margin % has ranged from 1.97 to 11.54 over the past decade. While the company's 10-year median is 6.60 vs. the industry median of 12.55, SRU Steels 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 Steel company?
The median Gross Margin % among Steel companies is 12.55, based on 592 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. SRU Steels's current Gross Margin % of 6.35% is 49.4% 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 SRU Steels and its competitors. For the Steel industry, the median Gross Margin % is 12.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SRU Steels's current Gross Margin % is 6.35%, which is near median its own 10-year median of 6.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SRU Steels stock overvalued right now?
Based on GuruFocus' analysis, SRU Steels (BOM:540914) is currently considered Possible Value Trap. The stock's GF Value™ is ₹5.96, compared to a current price of ₹1.64 — trading 72.5% below its estimated fair value. The current Gross Margin % is 6.35%, which is near median its 10-year median of 6.60 and 49.4% below the Steel industry median of 12.55. SRU Steels' overall GF Score™ is 54/100 with 9 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 SRU Steels (BOM:540914), the current Gross Margin % is 6.35% as of Dec. 2025. 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 SRU Steels (BOM:540914) Overvalued in 2026?
Based on GuruFocus' analysis, SRU Steels stock appears to be undervalued.
The current stock price of ₹1.64 is trading 72.5% below its estimated GF Value™ of ₹5.96.
GuruFocus considers SRU Steels to be Possible Value Trap.
Key valuation signals for BOM:540914:
Gross Margin %: 6.35% (near median its 10-year median of 6.60)
GF Value™: ₹5.96 vs. price of ₹1.64 (72.5% below fair value)
Industry Position: 49.4% below the Steel median (#483 of 592)
No single metric tells the full story. See the BOM:540914 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SRU Steels Ltd is an India-based company engaged in trading in various types of Iron and Steel. It offers Stainless Steel products such as Coils, Sheets, and other types of steel. Geographically, it operates in India. The company is also engaged in the sale of steel products on a commission basis.
54GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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