Shyam Metalics and Energy (BOM:543299) Gross Margin % Explanation
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
Shyam Metalics and Energy had a gross margin of 30.27% for the quarter that ended in Mar. 2026 => Competition eroding margins
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.
Shyam Metalics and Energy Gross Margin % Related Terms
Shyam Metalics and Energy 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:543299 vs NUE, STLD, RS: Gross Margin % Comparison
For the Steel subindustry, Shyam Metalics and Energy'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.
Shyam Metalics and Energy Gross Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Shyam Metalics and Energy's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Shyam Metalics and Energy'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.
Shyam Metalics and Energy (BOM:543299) has a Gross Margin % of 30.27% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Shyam Metalics and Energy and its competitors. This is near median its historical median of 29.76. Over the past decade, Shyam Metalics and Energy's Gross Margin % has ranged from 24.36 to 34.79. According to the industry distribution chart, Shyam Metalics and Energy ranks #110 out of 593 companies in the Steel industry, placing it in the top 18.5%.
Is Shyam Metalics and Energy's Gross Margin % too high?
Shyam Metalics and Energy's current Gross Margin % of 30.27% is near median its 10-year median of 29.76. Over the past 10 years, this metric has ranged from a low of 24.36 to a high of 34.79. The Steel industry median Gross Margin % is 12.60. Shyam Metalics and Energy's value of 30.27% is 140.2% above this industry median. Based on the distribution chart, Shyam Metalics and Energy ranks #110 out of 593 companies in the Steel industry, which is in the top quartile — a strong position relative to peers. Overall, Shyam Metalics and Energy has a GF Score™ of 89/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Shyam Metalics and Energy's Gross Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Shyam Metalics and Energy ranks #110 out of 593 companies for Gross Margin %. This places Shyam Metalics and Energy in the top 19% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 12.60. Shyam Metalics and Energy's value of 30.27% is 140.2% above this benchmark. Historically, Shyam Metalics and Energy's own Gross Margin % has ranged from 24.36 to 34.79 over the past decade. While the company's 10-year median is 29.76 vs. the industry median of 12.60, Shyam Metalics and Energy 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 Steel company?
The median Gross Margin % among Steel companies is 12.60, based on 593 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. Shyam Metalics and Energy's current Gross Margin % of 30.27% is 140.2% 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 Shyam Metalics and Energy and its competitors. For the Steel industry, the median Gross Margin % is 12.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shyam Metalics and Energy's current Gross Margin % is 30.27%, which is near median its own 10-year median of 29.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shyam Metalics and Energy stock overvalued right now?
Based on GuruFocus' analysis, Shyam Metalics and Energy (BOM:543299) is currently considered Fairly Valued. The stock's GF Value™ is ₹964.96, compared to a current price of ₹973.20 — trading 0.9% above its estimated fair value. The current Gross Margin % is 30.27%, which is near median its 10-year median of 29.76 and 140.2% above the Steel industry median of 12.60. Shyam Metalics and Energy's overall GF Score™ is 89/100 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 Shyam Metalics and Energy (BOM:543299), the current Gross Margin % is 30.27% 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 Shyam Metalics and Energy (BOM:543299) Overvalued in 2026?
Based on GuruFocus' analysis, Shyam Metalics and Energy stock appears to be overvalued.
The current stock price of ₹973.20 is trading 0.9% above its estimated GF Value™ of ₹964.96.
GuruFocus considers Shyam Metalics and Energy to be Fairly Valued.
Key valuation signals for BOM:543299:
Gross Margin %: 30.27% (near median its 10-year median of 29.76)
GF Value™: ₹964.96 vs. price of ₹973.20 (0.9% above fair value)
Industry Position: 140.2% above the Steel median (#110 of 593)
No single metric tells the full story. See the BOM:543299 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shyam Metalics and Energy Ltd is an integrated metal producer company. It is majorly engaged in the production of long steel products such as iron pellets, sponge iron, steel billets, TMT, structural products, wire rods, and ferroalloys. The company generates the majority of its revenue from India. The group revenue from the Sale of Manufactured Products, Sale of Services, Sale of Traded Goods, and Sale of Power, with the majority being generated from the sale of manufactured products. The Company has only one business segment which is iron and steel.
89GF Score
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