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Laxmi India FinanceBOM:544465 +0.34%10 Gross Margin % is 40.64% as of Mar. 2026, which is 50% above its 10-year median of 27.15. GuruFocus rates BOM:544465 with a GF Score™ of 10/100. The stock has 4 warning signs investors should review. Among 391 Credit Services companies, Laxmi India Finance ranks worse than 68.29% on this metric.
Laxmi India Finance (BOM:544465) 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
Laxmi India Finance had a gross margin of 40.64% for the quarter that ended in Mar. 2026 => Durable 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.
Laxmi India Finance Gross Margin % Related Terms
Laxmi India Finance Gross Margin % Historical Data
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The historical data trend for Laxmi India Finance'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:544465 vs V, MA, AXP: Gross Margin % Comparison
For the Credit Services subindustry, Laxmi India Finance'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.
Laxmi India Finance Gross Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Laxmi India Finance's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Laxmi India Finance'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.
Laxmi India Finance (BOM:544465) has a Gross Margin % of 40.64% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Laxmi India Finance and its competitors. This is 50% above median its historical median of 27.15. Over the past decade, Laxmi India Finance's Gross Margin % has ranged from 22.66 to 34.55. According to the industry distribution chart, Laxmi India Finance ranks #267 out of 391 companies in the Credit Services industry, placing it in the top 68.3%.
Is Laxmi India Finance's Gross Margin % too high?
Laxmi India Finance's current Gross Margin % of 40.64% is 50% above median its 10-year median of 27.15. Over the past 10 years, this metric has ranged from a low of 22.66 to a high of 34.55. The Credit Services industry median Gross Margin % is 51.77. Laxmi India Finance's value of 40.64% is 21.5% below this industry median. Based on the distribution chart, Laxmi India Finance ranks #267 out of 391 companies in the Credit Services industry, which is below the industry midpoint. Overall, Laxmi India Finance has a GF Score™ of 10/100, reflecting its overall financial health beyond just this single metric.
How does Laxmi India Finance's Gross Margin % compare to V and MA?
According to the Credit Services industry distribution chart, Laxmi India Finance ranks #267 out of 391 companies for Gross Margin %. This places Laxmi India Finance in the lower half of its industry. The industry median Gross Margin % is 51.77. Laxmi India Finance's value of 40.64% is 21.5% below this benchmark. Historically, Laxmi India Finance's own Gross Margin % has ranged from 22.66 to 34.55 over the past decade. While the company's 10-year median is 27.15 vs. the industry median of 51.77, Laxmi India Finance 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 Credit Services company?
The median Gross Margin % among Credit Services companies is 51.77, based on 391 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. Laxmi India Finance's current Gross Margin % of 40.64% is 21.5% 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 Laxmi India Finance and its competitors. For the Credit Services industry, the median Gross Margin % is 51.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Laxmi India Finance's current Gross Margin % is 40.64%, which is 50% above median its own 10-year median of 27.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Laxmi India Finance stock overvalued right now?
Laxmi India Finance (BOM:544465) has a current Gross Margin % of 40.64%. The current Gross Margin % is 40.64%, which is 50% above median its 10-year median of 27.15 and 21.5% below the Credit Services industry median of 51.77. Laxmi India Finance's overall GF Score™ is 10/100 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 Laxmi India Finance (BOM:544465), the current Gross Margin % is 40.64% 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.
Laxmi India Finance Ltd is a non-deposit taking non-banking financial company focused on serving the financial needs of underserved customers in India's lending market. Its operational network spans across approximately 158 branches in rural, semi-urban and urban areas in the states of Rajasthan, Gujarat, Madhya Pradesh, Chhattisgarh and Uttar Pradesh. Its product portfolio includes MSME loans, vehicle loans, construction loans and other lending products catering to the diverse financial needs of its customers. The company's MSME lending fuels economic growth and promotes financial inclusion by supporting small businesses and entrepreneurs, with over 80% of its MSME loans qualifying as Priority Sector Lending under RBI guidelines.
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