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
Bhatia Communications & Retail (India) had a gross margin of 9.74% 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.
Bhatia Communications & Retail (India) Gross Margin % Related Terms
Bhatia Communications & Retail (India) Gross Margin % Historical Data
* 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:540956 vs SNX, ARW, AVT: Gross Margin % Comparison
For the Electronics & Computer Distribution subindustry, Bhatia Communications & Retail (India)'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.
Bhatia Communications & Retail (India) Gross Margin % vs Hardware Industry
* 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.
Bhatia Communications & Retail (India) (BOM:540956) has a Gross Margin % of 9.74% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Bhatia Communications & Retail (India) and its competitors. This is 229% above median its historical median of 2.96. Over the past decade, Bhatia Communications & Retail (India)'s Gross Margin % has ranged from 1.59 to 10.89. According to the industry distribution chart, Bhatia Communications & Retail (India) ranks #2078 out of 2457 companies in the Hardware industry, placing it in the top 84.6%.
Is Bhatia Communications & Retail (India)'s Gross Margin % too high?
Bhatia Communications & Retail (India)'s current Gross Margin % of 9.74% is 229% above median its 10-year median of 2.96. Over the past 10 years, this metric has ranged from a low of 1.59 to a high of 10.89. The Hardware industry median Gross Margin % is 24.54. Bhatia Communications & Retail (India)'s value of 9.74% is 60.3% below this industry median. Based on the distribution chart, Bhatia Communications & Retail (India) ranks #2078 out of 2457 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Bhatia Communications & Retail (India) has a GF Score™ of 91/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Bhatia Communications & Retail (India)'s Gross Margin % compare to SNX and ARW?
According to the Hardware industry distribution chart, Bhatia Communications & Retail (India) ranks #2078 out of 2457 companies for Gross Margin %. This places Bhatia Communications & Retail (India) in the lower half of its industry. The industry median Gross Margin % is 24.54. Bhatia Communications & Retail (India)'s value of 9.74% is 60.3% below this benchmark. Historically, Bhatia Communications & Retail (India)'s own Gross Margin % has ranged from 1.59 to 10.89 over the past decade. While the company's 10-year median is 2.96 vs. the industry median of 24.54, Bhatia Communications & Retail (India) 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 Hardware company?
The median Gross Margin % among Hardware companies is 24.54, based on 2,457 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. Bhatia Communications & Retail (India)'s current Gross Margin % of 9.74% is 60.3% 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 Bhatia Communications & Retail (India) and its competitors. For the Hardware industry, the median Gross Margin % is 24.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bhatia Communications & Retail (India)'s current Gross Margin % is 9.74%, which is 229% above median its own 10-year median of 2.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bhatia Communications & Retail (India) stock overvalued right now?
Based on GuruFocus' analysis, Bhatia Communications & Retail (India) (BOM:540956) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹34.93, compared to a current price of ₹24.77 — trading 29.1% below its estimated fair value. The current Gross Margin % is 9.74%, which is 229% above median its 10-year median of 2.96 and 60.3% below the Hardware industry median of 24.54. Bhatia Communications & Retail (India)'s overall GF Score™ is 91/100 with 1 warning sign 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 Bhatia Communications & Retail (India) (BOM:540956), the current Gross Margin % is 9.74% 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 Bhatia Communications & Retail (India) (BOM:540956) Overvalued in 2026?
Based on GuruFocus' analysis, Bhatia Communications & Retail (India) stock appears to be undervalued.
The current stock price of ₹24.77 is trading 29.1% below its estimated GF Value™ of ₹34.93.
GuruFocus considers Bhatia Communications & Retail (India) to be Modestly Undervalued.
Key valuation signals for BOM:540956:
Gross Margin %: 9.74% (229% above median its 10-year median of 2.96)
GF Value™: ₹34.93 vs. price of ₹24.77 (29.1% below fair value)
Industry Position: 60.3% below the Hardware median (#2078 of 2457)
No single metric tells the full story. See the BOM:540956 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bhatia Communications & Retail (India) Business Description
Bhatia Communications & Retail (India) Ltd is the distributor of mobile handsets and accessories. The firm is engaged in the retail and wholesale distribution of mobile handsets, tablets, data cards and mobile accessories through retail and franchised stores. It is a growth-oriented company selling multi-product brands that also operates under stores and sells electronic appliances such as television, refrigerators, air conditioners, coolers, washing machines, and microwaves. Bhatia Communications markets and sells its product under the brands: Apple iPhone, Samsung, OPPO, VIVO, etc. Substantial revenue accrues from owned retail stores. It also offers technical expertise and guide to customers to buy the right product as per their needs.
91GF 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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