Deepak ChemtexBOM:544036 +1.64%53 Gross Margin % is 33.62% as of Mar. 2026, which is 2% below its 10-year median of 34.22. GuruFocus rates BOM:544036 with a GF Score™ of 53/100. The stock has 4 warning signs investors should review. Among 1,557 Chemicals companies, Deepak Chemtex ranks better than 78.42% 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
Deepak Chemtex had a gross margin of 33.62% 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.
Deepak Chemtex Gross Margin % Related Terms
Deepak Chemtex Gross Margin % Historical Data
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The historical data trend for Deepak Chemtex'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:544036 vs LIN, SHW, ECL: Gross Margin % Comparison
For the Specialty Chemicals subindustry, Deepak Chemtex'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.
Deepak Chemtex Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Deepak Chemtex's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Deepak Chemtex'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.
Deepak Chemtex (BOM:544036) has a Gross Margin % of 33.62% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Deepak Chemtex and its competitors. This is near median its historical median of 34.22. Over the past decade, Deepak Chemtex's Gross Margin % has ranged from 26.24 to 37.05. According to the industry distribution chart, Deepak Chemtex ranks #336 out of 1557 companies in the Chemicals industry, placing it in the top 21.6%.
Is Deepak Chemtex's Gross Margin % too high?
Deepak Chemtex's current Gross Margin % of 33.62% is near median its 10-year median of 34.22. Over the past 10 years, this metric has ranged from a low of 26.24 to a high of 37.05. The Chemicals industry median Gross Margin % is 23.49. Deepak Chemtex's value of 33.62% is 43.1% above this industry median. Based on the distribution chart, Deepak Chemtex ranks #336 out of 1557 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Deepak Chemtex has a GF Score™ of 53/100, reflecting its overall financial health beyond just this single metric.
How does Deepak Chemtex's Gross Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Deepak Chemtex ranks #336 out of 1557 companies for Gross Margin %. This places Deepak Chemtex in the top 22% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 23.49. Deepak Chemtex's value of 33.62% is 43.1% above this benchmark. Historically, Deepak Chemtex's own Gross Margin % has ranged from 26.24 to 37.05 over the past decade. While the company's 10-year median is 34.22 vs. the industry median of 23.49, Deepak Chemtex 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 Chemicals company?
The median Gross Margin % among Chemicals companies is 23.49, based on 1,557 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. Deepak Chemtex's current Gross Margin % of 33.62% is 43.1% 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 Deepak Chemtex and its competitors. For the Chemicals industry, the median Gross Margin % is 23.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Deepak Chemtex's current Gross Margin % is 33.62%, which is near median its own 10-year median of 34.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Deepak Chemtex stock overvalued right now?
Deepak Chemtex (BOM:544036) has a current Gross Margin % of 33.62%. The current Gross Margin % is 33.62%, which is near median its 10-year median of 34.22 and 43.1% above the Chemicals industry median of 23.49. Deepak Chemtex's overall GF Score™ is 53/100 with 4 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 Deepak Chemtex (BOM:544036), the current Gross Margin % is 33.62% 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.
Deepak Chemtex Ltd is engaged in manufacturing colorants finding applications in Food, Drug, Cosmetics, Cleaning compounds, Agriculture, and other industries. Colorants are formulations of chemical intermediates, pigments, or dyes and additives used to add color to various consumables. It also manufactures salt-free dyes used in the inkjet industry, pond dyes used in ponds, lakes, swimming pools, etc, and other colorants used in car wash products, portable sanitation cleaners, detergent & soap, fuel, oil & lubricants, smoke, seed treatment, crop protection, fertilizer indicators, floral dyes, etc.
53GF Score
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