Millat TractorsKAR:MTL -0.39%78 Gross Margin % is 37.94% as of Mar. 2026, which is 57% above its 10-year median of 24.18. GuruFocus rates KAR:MTL with a GF Score™ of 78/100 and a GF Value™ of ₨211.65 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 210 Farm & Heavy Construction Machinery companies, Millat Tractors ranks better than 76.19% on this metric.
The historical rank and industry rank for Millat Tractors's Gross Margin % or its related term are showing as below:
KAR:MTL'
s Gross Margin % Range Over the Past 10 Years
Min: 20.47 Med: 24.18 Max: 33.24
Current: 33.24
During the past 13 years, the highestGross Margin % of Millat Tractors was 33.24%. The lowest was 20.47%. And the median was 24.18%.
KAR:MTL's Gross Margin % is ranked better than 76.19% of 210
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 25.66
vs KAR:MTL: 33.24
Millat Tractors had a gross margin of 37.94% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Millat Tractors was 4.20% per year.
Millat Tractors (KAR:MTL) 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
Millat Tractors had a gross margin of 37.94% 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.
Millat Tractors Gross Margin % Related Terms
Millat Tractors Gross Margin % Historical Data
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The historical data trend for Millat Tractors'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:MTL vs CAT, DE, PCAR: Gross Margin % Comparison
For the Farm & Heavy Construction Machinery subindustry, Millat Tractors'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.
Millat Tractors Gross Margin % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Millat Tractors's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Millat Tractors'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.
Millat Tractors (KAR:MTL) has a Gross Margin % of 37.94% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Millat Tractors and its competitors. This is 57% above median its historical median of 24.18. Over the past decade, Millat Tractors' Gross Margin % has ranged from 20.47 to 33.24. According to the industry distribution chart, Millat Tractors ranks #50 out of 210 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 23.8%.
Is Millat Tractors' Gross Margin % too high?
Millat Tractors' current Gross Margin % of 37.94% is 57% above median its 10-year median of 24.18. Over the past 10 years, this metric has ranged from a low of 20.47 to a high of 33.24. The Farm & Heavy Construction Machinery industry median Gross Margin % is 25.66. Millat Tractors' value of 37.94% is 47.9% above this industry median. Based on the distribution chart, Millat Tractors ranks #50 out of 210 companies in the Farm & Heavy Construction Machinery industry, which is in the top quartile — a strong position relative to peers. Overall, Millat Tractors has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Millat Tractors' Gross Margin % compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Millat Tractors ranks #50 out of 210 companies for Gross Margin %. This places Millat Tractors in the top 24% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 25.66. Millat Tractors' value of 37.94% is 47.9% above this benchmark. Historically, Millat Tractors' own Gross Margin % has ranged from 20.47 to 33.24 over the past decade. While the company's 10-year median is 24.18 vs. the industry median of 25.66, Millat Tractors 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 Farm & Heavy Construction Machinery company?
The median Gross Margin % among Farm & Heavy Construction Machinery companies is 25.66, based on 210 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. Millat Tractors's current Gross Margin % of 37.94% is 47.9% 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 Millat Tractors and its competitors. For the Farm & Heavy Construction Machinery industry, the median Gross Margin % is 25.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Millat Tractors's current Gross Margin % is 37.94%, which is 57% above median its own 10-year median of 24.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Millat Tractors stock overvalued right now?
Based on GuruFocus' analysis, Millat Tractors (KAR:MTL) is currently considered Significantly Overvalued. The stock's GF Value™ is ₨211.65, compared to a current price of ₨304.01 — trading 43.6% above its estimated fair value. The current Gross Margin % is 37.94%, which is 57% above median its 10-year median of 24.18 and 47.9% above the Farm & Heavy Construction Machinery industry median of 25.66. Millat Tractors' overall GF Score™ is 78/100 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 Millat Tractors (KAR:MTL), the current Gross Margin % is 37.94% 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 Millat Tractors (KAR:MTL) Overvalued in 2026?
Based on GuruFocus' analysis, Millat Tractors stock appears to be overvalued.
The current stock price of ₨304.01 is trading 43.6% above its estimated GF Value™ of ₨211.65.
GuruFocus considers Millat Tractors to be Significantly Overvalued.
Key valuation signals for KAR:MTL:
Gross Margin %: 37.94% (57% above median its 10-year median of 24.18)
GF Value™: ₨211.65 vs. price of ₨304.01 (43.6% above fair value)
Industry Position: 47.9% above the Farm & Heavy Construction Machinery median (#50 of 210)
No single metric tells the full story. See the KAR:MTL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Millat Tractors Ltd operates in the automobile sector. It is engaged in assembling and manufacturing of agricultural tractors, implements and multi-application products. The Company is also involved in the sale, implementation and support of IFS applications in Pakistan and abroad. The company's operating segment includes Tractors; Tractor components; Castings and Others. It generates maximum revenue from the Tractors segment. The tractor components segment is engaged in the business of manufacturing automotive, agricultural and industrial vehicle parts and components.
78GF Score
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