United Cotfab (BOM:544195) Gross Margin %: 12.81% (As of Mar. 2026) — 12% Below Median

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BOM:544195 United Cotfab Ltd BOM:544195
9 GF Score
Price ₹16.50
! 6 Warning Signs
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What is United Cotfab Gross Margin %?

United Cotfab BOM:544195 -2.65% 9 Gross Margin % is 12.81% as of Mar. 2026, which is 12% below its 10-year median of 14.50. GuruFocus rates BOM:544195 with a GF Score™ of 9/100. The stock has 6 warning signs investors should review. Among 1,025 Manufacturing - Apparel & Accessories companies, United Cotfab ranks worse than 80.98% on this metric.

Gross Margin % is calculated as gross profit divided by its revenue. United Cotfab's Gross Profit for the six months ended in Mar. 2026 was ₹102 Mil. United Cotfab's Revenue for the six months ended in Mar. 2026 was ₹800 Mil. Therefore, United Cotfab's Gross Margin % for the quarter that ended in Mar. 2026 was 12.81%.


The historical rank and industry rank for United Cotfab's Gross Margin % or its related term are showing as below:

BOM:544195' s Gross Margin % Range Over the Past 10 Years
Min: 4.55   Med: 14.5   Max: 19.89
Current: 11.82


During the past 6 years, the highest Gross Margin % of United Cotfab was 19.89%. The lowest was 4.55%. And the median was 14.50%.

BOM:544195's Gross Margin % is ranked worse than
80.98% of 1025 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 28.34 vs BOM:544195: 11.82

United Cotfab had a gross margin of 12.81% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for United Cotfab was 0.00% per year.


United Cotfab  (BOM:544195) 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

United Cotfab had a gross margin of 12.81% 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.


United Cotfab Gross Margin % Related Terms


United Cotfab Gross Margin % Historical Data

* Premium members only.

The historical data trend for United Cotfab'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.

United Cotfab Gross Margin % Chart

United Cotfab Annual Data
Trend Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Gross Margin %
Get a 7-Day Free Trial 0.00 4.55 19.89 17.18 11.82

United Cotfab Semi-Annual Data
Mar21 Mar22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
Gross Margin % Get a 7-Day Free Trial Premium Member Only 17.02 18.25 16.12 10.76 12.81

United Cotfab Gross Margin % Competitor Comparison

For the Textile Manufacturing subindustry, United Cotfab'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.


United Cotfab Gross Margin % vs Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, United Cotfab's Gross Margin % distribution charts can be found below:

* The bar in red indicates where United Cotfab's Gross Margin % falls into.


BOM:544195
9GF Score
United Cotfab Ltd BOM:544195
Gross Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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United Cotfab Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

United Cotfab's Gross Margin for the fiscal year that ended in Mar. 2026 is calculated as

Gross Margin % (A: Mar. 2026 )=Gross Profit (A: Mar. 2026 ) / Revenue (A: Mar. 2026 )
=182.8 / 1546.829
=(Revenue - Cost of Goods Sold) / Revenue
=(1546.829 - 1363.989) / 1546.829
=11.82 %

United Cotfab's Gross Margin for the quarter that ended in Mar. 2026 is calculated as


Gross Margin % (Q: Mar. 2026 )=Gross Profit (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=102.5 / 800.115
=(Revenue - Cost of Goods Sold) / Revenue
=(800.115 - 697.618) / 800.115
=12.81 %

* 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.

Frequently Asked Questions Learn more about Gross Margin % →
What does a Gross Margin % of 12.81% mean?
United Cotfab (BOM:544195) has a Gross Margin % of 12.81% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on United Cotfab and its competitors. This is 12% below median its historical median of 14.50. Over the past decade, United Cotfab's Gross Margin % has ranged from 4.55 to 19.89. According to the industry distribution chart, United Cotfab ranks #830 out of 1025 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 81%.
Is United Cotfab's Gross Margin % too high?
United Cotfab's current Gross Margin % of 12.81% is 12% below median its 10-year median of 14.50. Over the past 10 years, this metric has ranged from a low of 4.55 to a high of 19.89. The Manufacturing - Apparel & Accessories industry median Gross Margin % is 28.34. United Cotfab's value of 12.81% is 54.8% below this industry median. Based on the distribution chart, United Cotfab ranks #830 out of 1025 companies in the Manufacturing - Apparel & Accessories industry, which is in the bottom quartile relative to peers. Overall, United Cotfab has a GF Score™ of 9/100, reflecting its overall financial health beyond just this single metric.
How does United Cotfab's Gross Margin % compare to competitors?
According to the Manufacturing - Apparel & Accessories industry distribution chart, United Cotfab ranks #830 out of 1025 companies for Gross Margin %. This places United Cotfab in the lower half of its industry. The industry median Gross Margin % is 28.34. United Cotfab's value of 12.81% is 54.8% below this benchmark. Historically, United Cotfab's own Gross Margin % has ranged from 4.55 to 19.89 over the past decade. While the company's 10-year median is 14.50 vs. the industry median of 28.34, United Cotfab 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 Manufacturing - Apparel & Accessories company?
The median Gross Margin % among Manufacturing - Apparel & Accessories companies is 28.34, based on 1,025 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. United Cotfab's current Gross Margin % of 12.81% is 54.8% 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 United Cotfab and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Gross Margin % is 28.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. United Cotfab's current Gross Margin % is 12.81%, which is 12% below median its own 10-year median of 14.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is United Cotfab stock overvalued right now?
United Cotfab (BOM:544195) has a current Gross Margin % of 12.81%. The current Gross Margin % is 12.81%, which is 12% below median its 10-year median of 14.50 and 54.8% below the Manufacturing - Apparel & Accessories industry median of 28.34. United Cotfab's overall GF Score™ is 9/100 with 6 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 United Cotfab (BOM:544195), the current Gross Margin % is 12.81% 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.

United Cotfab Business Description

Address Shahwadi Near Pirana Octroi Naka, Survey No. 238, 239, Narol, Ahmedabad, GJ, IND, 382405
United Cotfab Ltd is engaged in the manufacturing of high-quality open-end cotton yarn catering to the textile industry. Its manufacturing process adheres to stringent quality standards and is backed by technology and machinery. The company follows a systematic approach that includes raw material selection, blending (if required), spinning, winding, and quality control.
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