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Mehul ColoursBOM:544472 -4.25%21 Gross Margin % is 37.27% as of Mar. 2026, which is 11% below its 10-year median of 42.10. GuruFocus rates BOM:544472 with a GF Score™ of 21/100. The stock has 4 warning signs investors should review. Among 1,560 Chemicals companies, Mehul Colours ranks better than 84.68% 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
Mehul Colours had a gross margin of 37.27% 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.
Mehul Colours Gross Margin % Related Terms
Mehul Colours Gross Margin % Historical Data
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The historical data trend for Mehul Colours'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:544472 vs LIN, SHW, ECL: Gross Margin % Comparison
For the Specialty Chemicals subindustry, Mehul Colours'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.
Mehul Colours Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Mehul Colours's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Mehul Colours'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.
Mehul Colours (BOM:544472) has a Gross Margin % of 37.27% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Mehul Colours and its competitors. This is 11% below median its historical median of 42.10. Over the past decade, Mehul Colours' Gross Margin % has ranged from 28.22 to 55.14. According to the industry distribution chart, Mehul Colours ranks #239 out of 1560 companies in the Chemicals industry, placing it in the top 15.3%.
Is Mehul Colours' Gross Margin % too high?
Mehul Colours' current Gross Margin % of 37.27% is 11% below median its 10-year median of 42.10. Over the past 10 years, this metric has ranged from a low of 28.22 to a high of 55.14. The Chemicals industry median Gross Margin % is 23.59. Mehul Colours' value of 37.27% is 58% above this industry median. Based on the distribution chart, Mehul Colours ranks #239 out of 1560 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Mehul Colours has a GF Score™ of 21/100, reflecting its overall financial health beyond just this single metric.
How does Mehul Colours' Gross Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Mehul Colours ranks #239 out of 1560 companies for Gross Margin %. This places Mehul Colours in the top 15% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 23.59. Mehul Colours' value of 37.27% is 58% above this benchmark. Historically, Mehul Colours' own Gross Margin % has ranged from 28.22 to 55.14 over the past decade. While the company's 10-year median is 42.10 vs. the industry median of 23.59, Mehul Colours 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 23.59, based on 1,560 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. Mehul Colours's current Gross Margin % of 37.27% is 58% 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 Mehul Colours and its competitors. For the Chemicals industry, the median Gross Margin % is 23.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mehul Colours's current Gross Margin % is 37.27%, which is 11% below median its own 10-year median of 42.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mehul Colours stock overvalued right now?
Mehul Colours (BOM:544472) has a current Gross Margin % of 37.27%. The current Gross Margin % is 37.27%, which is 11% below median its 10-year median of 42.10 and 58% above the Chemicals industry median of 23.59. Mehul Colours' overall GF Score™ is 21/100 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 Mehul Colours (BOM:544472), the current Gross Margin % is 37.27% 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.
Mehul Colours Ltd is engaged in the manufacturing of masterbatches, which are used in the plastics industry to impart colour and enhance the functional properties of plastic products. Masterbatches are concentrated mixtures of pigments and additives that are uniformly dispersed in polymer carriers, facilitating the effective integration of colour and performance-enhancing properties into plastic products. In addition to manufacturing masterbatches, it is also engaged in the sale of pigments, which are blended by the company to create customized pigment solutions tailored to specific industry and customer requirements.
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