Mughal Iron & Steel Industries (KAR:MUGHAL) 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
Mughal Iron & Steel Industries had a gross margin of 8.82% 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.
Mughal Iron & Steel Industries Gross Margin % Related Terms
Mughal Iron & Steel Industries Gross Margin % Historical Data
* 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.
Mughal Iron & Steel Industries Gross Margin % Chart
KAR:MUGHAL vs NUE, STLD, RS: Gross Margin % Comparison
For the Steel subindustry, Mughal Iron & Steel Industries'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.
Mughal Iron & Steel Industries Gross Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Mughal Iron & Steel Industries's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Mughal Iron & Steel Industries'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.
Mughal Iron & Steel Industries (KAR:MUGHAL) has a Gross Margin % of 8.82% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Mughal Iron & Steel Industries and its competitors. This is 17% below median its historical median of 10.65. Over the past decade, Mughal Iron & Steel Industries' Gross Margin % has ranged from 8.36 to 15.31. According to the industry distribution chart, Mughal Iron & Steel Industries ranks #326 out of 593 companies in the Steel industry, placing it in the top 55%.
Is Mughal Iron & Steel Industries' Gross Margin % too high?
Mughal Iron & Steel Industries' current Gross Margin % of 8.82% is 17% below median its 10-year median of 10.65. Over the past 10 years, this metric has ranged from a low of 8.36 to a high of 15.31. The Steel industry median Gross Margin % is 12.60. Mughal Iron & Steel Industries' value of 8.82% is 30% below this industry median. Based on the distribution chart, Mughal Iron & Steel Industries ranks #326 out of 593 companies in the Steel industry, which is below the industry midpoint. Overall, Mughal Iron & Steel Industries has a GF Score™ of 89/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Mughal Iron & Steel Industries' Gross Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Mughal Iron & Steel Industries ranks #326 out of 593 companies for Gross Margin %. This places Mughal Iron & Steel Industries in the lower half of its industry. The industry median Gross Margin % is 12.60. Mughal Iron & Steel Industries' value of 8.82% is 30% below this benchmark. Historically, Mughal Iron & Steel Industries' own Gross Margin % has ranged from 8.36 to 15.31 over the past decade. While the company's 10-year median is 10.65 vs. the industry median of 12.60, Mughal Iron & Steel Industries 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 Steel company?
The median Gross Margin % among Steel companies is 12.60, based on 593 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. Mughal Iron & Steel Industries's current Gross Margin % of 8.82% is 30% 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 Mughal Iron & Steel Industries and its competitors. For the Steel industry, the median Gross Margin % is 12.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mughal Iron & Steel Industries's current Gross Margin % is 8.82%, which is 17% below median its own 10-year median of 10.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mughal Iron & Steel Industries stock overvalued right now?
Based on GuruFocus' analysis, Mughal Iron & Steel Industries (KAR:MUGHAL) is currently considered Modestly Overvalued. The stock's GF Value™ is ₨70.08, compared to a current price of ₨87.61 — trading 25% above its estimated fair value. The current Gross Margin % is 8.82%, which is 17% below median its 10-year median of 10.65 and 30% below the Steel industry median of 12.60. Mughal Iron & Steel Industries' overall GF Score™ is 89/100 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 Mughal Iron & Steel Industries (KAR:MUGHAL), the current Gross Margin % is 8.82% 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 Mughal Iron & Steel Industries (KAR:MUGHAL) Overvalued in 2026?
Based on GuruFocus' analysis, Mughal Iron & Steel Industries stock appears to be overvalued.
The current stock price of ₨87.61 is trading 25% above its estimated GF Value™ of ₨70.08.
GuruFocus considers Mughal Iron & Steel Industries to be Modestly Overvalued.
Key valuation signals for KAR:MUGHAL:
Gross Margin %: 8.82% (17% below median its 10-year median of 10.65)
GF Value™: ₨70.08 vs. price of ₨87.61 (25% above fair value)
Industry Position: 30% below the Steel median (#326 of 593)
No single metric tells the full story. See the KAR:MUGHAL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mughal Iron & Steel Industries Business Description
Mughal Iron & Steel Industries Ltd is engaged in the manufacturing and trading of mild steel products. The operating segments of the company are Ferrous, Non-Ferrous, and the Energy segment. The company's main products involve Steel re-bars (G60 / Mughal Supreme), Girders, Billets, Copper ingots, and Copper granules.
89GF Score
Get the complete analysis for KAR:MUGHAL
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
KAR:MUGHAL has been successfully added to your 
