D G Khan CementKAR:DGKC -0.09%60 Gross Margin % is 26.69% as of Mar. 2026, which is 45% above its 10-year median of 18.36. GuruFocus rates KAR:DGKC with a GF Score™ of 60/100 and a GF Value™ of ₨92.48 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 396 Building Materials companies, D G Khan Cement ranks better than 52.02% on this metric.
The historical rank and industry rank for D G Khan Cement's Gross Margin % or its related term are showing as below:
KAR:DGKC'
s Gross Margin % Range Over the Past 10 Years
Min: 4.73 Med: 18.36 Max: 38.92
Current: 27.31
During the past 13 years, the highestGross Margin % of D G Khan Cement was 38.92%. The lowest was 4.73%. And the median was 18.36%.
KAR:DGKC's Gross Margin % is ranked better than 52.02% of 396
companies
in the Building Materials industry
Industry Median: 26.155
vs KAR:DGKC: 27.31
D G Khan Cement had a gross margin of 26.69% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for D G Khan Cement was 24.90% per year.
D G Khan Cement (KAR:DGKC) 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
D G Khan Cement had a gross margin of 26.69% 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.
D G Khan Cement Gross Margin % Related Terms
D G Khan Cement Gross Margin % Historical Data
* Premium members only.
The historical data trend for D G Khan Cement'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.
KAR:DGKC vs CRH, VMC, MLM: Gross Margin % Comparison
For the Building Materials subindustry, D G Khan Cement'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.
D G Khan Cement Gross Margin % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, D G Khan Cement's Gross Margin % distribution charts can be found below:
* The bar in red indicates where D G Khan Cement'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.
D G Khan Cement (KAR:DGKC) has a Gross Margin % of 26.69% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on D G Khan Cement and its competitors. This is 45% above median its historical median of 18.36. Over the past decade, D G Khan Cement's Gross Margin % has ranged from 4.73 to 38.92. According to the industry distribution chart, D G Khan Cement ranks #190 out of 396 companies in the Building Materials industry, placing it in the top 48%.
Is D G Khan Cement's Gross Margin % too high?
D G Khan Cement's current Gross Margin % of 26.69% is 45% above median its 10-year median of 18.36. Over the past 10 years, this metric has ranged from a low of 4.73 to a high of 38.92. The Building Materials industry median Gross Margin % is 26.16. D G Khan Cement's value of 26.69% is 2% above this industry median. Based on the distribution chart, D G Khan Cement ranks #190 out of 396 companies in the Building Materials industry, which is above the industry midpoint. Overall, D G Khan Cement has a GF Score™ of 60/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does D G Khan Cement's Gross Margin % compare to CRH and VMC?
According to the Building Materials industry distribution chart, D G Khan Cement ranks #190 out of 396 companies for Gross Margin %. This puts D G Khan Cement in the upper half of its industry. The industry median Gross Margin % is 26.16. D G Khan Cement's value of 26.69% is 2% above this benchmark. Historically, D G Khan Cement's own Gross Margin % has ranged from 4.73 to 38.92 over the past decade. While the company's 10-year median is 18.36 vs. the industry median of 26.16, D G Khan Cement 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 Building Materials company?
The median Gross Margin % among Building Materials companies is 26.16, based on 396 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. D G Khan Cement's current Gross Margin % of 26.69% is 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 D G Khan Cement and its competitors. For the Building Materials industry, the median Gross Margin % is 26.16 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. D G Khan Cement's current Gross Margin % is 26.69%, which is 45% above median its own 10-year median of 18.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is D G Khan Cement stock overvalued right now?
Based on GuruFocus' analysis, D G Khan Cement (KAR:DGKC) is currently considered Significantly Overvalued. The stock's GF Value™ is ₨92.48, compared to a current price of ₨226.93 — trading 145.4% above its estimated fair value. The current Gross Margin % is 26.69%, which is 45% above median its 10-year median of 18.36 and 2% above the Building Materials industry median of 26.16. D G Khan Cement's overall GF Score™ is 60/100 with 2 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 D G Khan Cement (KAR:DGKC), the current Gross Margin % is 26.69% 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 D G Khan Cement (KAR:DGKC) Overvalued in 2026?
Based on GuruFocus' analysis, D G Khan Cement stock appears to be overvalued.
The current stock price of ₨226.93 is trading 145.4% above its estimated GF Value™ of ₨92.48.
GuruFocus considers D G Khan Cement to be Significantly Overvalued.
Key valuation signals for KAR:DGKC:
Gross Margin %: 26.69% (45% above median its 10-year median of 18.36)
GF Value™: ₨92.48 vs. price of ₨226.93 (145.4% above fair value)
Industry Position: 2% above the Building Materials median (#190 of 396)
No single metric tells the full story. See the KAR:DGKC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
D G Khan Cement Ltd is engaged in the production and sale of Clinker, Ordinary Portland and Sulphate Resistant Cement. It has four cement plants, two plants; located at Dera Ghazi Khan, one in Khairpur District, Chakwal, and one in Hub District, Lasbela. Its products are distributed across the Pakistan market. The company has three operating segments, which include the Cement segment: Production and sale of clinker, ordinary portland, and sulphate resistant cement, the Packaging segment: Manufacture and supply of paper products and packing material, the Dairy segment: Production and sale of raw milk.
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