Pakistan Tobacco CoKAR:PAKT +0.88%92 Gross Margin % is 35.58% as of Mar. 2026, which is 27% below its 10-year median of 48.96. GuruFocus rates KAR:PAKT with a GF Score™ of 92/100 and a GF Value™ of ₨1,500.90 (Fairly Valued). The stock has 4 warning signs investors should review. Among 47 Tobacco Products companies, Pakistan Tobacco Co ranks better than 65.96% on this metric.
The historical rank and industry rank for Pakistan Tobacco Co's Gross Margin % or its related term are showing as below:
KAR:PAKT'
s Gross Margin % Range Over the Past 10 Years
Min: 43.84 Med: 48.96 Max: 54.1
Current: 45.84
During the past 13 years, the highestGross Margin % of Pakistan Tobacco Co was 54.10%. The lowest was 43.84%. And the median was 48.96%.
KAR:PAKT's Gross Margin % is ranked better than 65.96% of 47
companies
in the Tobacco Products industry
Industry Median: 33.29
vs KAR:PAKT: 45.84
Pakistan Tobacco Co had a gross margin of 35.58% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Pakistan Tobacco Co was -0.30% per year.
Pakistan Tobacco Co (KAR:PAKT) 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
Pakistan Tobacco Co had a gross margin of 35.58% 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.
Pakistan Tobacco Co Gross Margin % Related Terms
Pakistan Tobacco Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Pakistan Tobacco Co'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:PAKT vs PM, MO, TPB: Gross Margin % Comparison
For the Tobacco subindustry, Pakistan Tobacco Co'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.
Pakistan Tobacco Co Gross Margin % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Pakistan Tobacco Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Pakistan Tobacco Co'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.
Pakistan Tobacco Co (KAR:PAKT) has a Gross Margin % of 35.58% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Pakistan Tobacco Co and its competitors. This is 27% below median its historical median of 48.96. Over the past decade, Pakistan Tobacco Co's Gross Margin % has ranged from 43.84 to 54.10. According to the industry distribution chart, Pakistan Tobacco Co ranks #16 out of 47 companies in the Tobacco Products industry, placing it in the top 34%.
Is Pakistan Tobacco Co's Gross Margin % too high?
Pakistan Tobacco Co's current Gross Margin % of 35.58% is 27% below median its 10-year median of 48.96. Over the past 10 years, this metric has ranged from a low of 43.84 to a high of 54.10. The Tobacco Products industry median Gross Margin % is 33.29. Pakistan Tobacco Co's value of 35.58% is 6.9% above this industry median. Based on the distribution chart, Pakistan Tobacco Co ranks #16 out of 47 companies in the Tobacco Products industry, which is above the industry midpoint. Overall, Pakistan Tobacco Co has a GF Score™ of 92/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Pakistan Tobacco Co's Gross Margin % compare to PM and MO?
According to the Tobacco Products industry distribution chart, Pakistan Tobacco Co ranks #16 out of 47 companies for Gross Margin %. This puts Pakistan Tobacco Co in the upper half of its industry. The industry median Gross Margin % is 33.29. Pakistan Tobacco Co's value of 35.58% is 6.9% above this benchmark. Historically, Pakistan Tobacco Co's own Gross Margin % has ranged from 43.84 to 54.10 over the past decade. While the company's 10-year median is 48.96 vs. the industry median of 33.29, Pakistan Tobacco Co 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 Tobacco Products company?
The median Gross Margin % among Tobacco Products companies is 33.29, based on 47 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. Pakistan Tobacco Co's current Gross Margin % of 35.58% is 6.9% 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 Pakistan Tobacco Co and its competitors. For the Tobacco Products industry, the median Gross Margin % is 33.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pakistan Tobacco Co's current Gross Margin % is 35.58%, which is 27% below median its own 10-year median of 48.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pakistan Tobacco Co stock overvalued right now?
Based on GuruFocus' analysis, Pakistan Tobacco Co (KAR:PAKT) is currently considered Fairly Valued. The stock's GF Value™ is ₨1,500.90, compared to a current price of ₨1,440.52 — trading 4% below its estimated fair value. The current Gross Margin % is 35.58%, which is 27% below median its 10-year median of 48.96 and 6.9% above the Tobacco Products industry median of 33.29. Pakistan Tobacco Co's overall GF Score™ is 92/100 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 Pakistan Tobacco Co (KAR:PAKT), the current Gross Margin % is 35.58% 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 Pakistan Tobacco Co (KAR:PAKT) Overvalued in 2026?
Based on GuruFocus' analysis, Pakistan Tobacco Co stock appears to be undervalued.
The current stock price of ₨1,440.52 is trading 4% below its estimated GF Value™ of ₨1,500.90.
GuruFocus considers Pakistan Tobacco Co to be Fairly Valued.
Key valuation signals for KAR:PAKT:
Gross Margin %: 35.58% (27% below median its 10-year median of 48.96)
GF Value™: ₨1,500.90 vs. price of ₨1,440.52 (4% below fair value)
Industry Position: 6.9% above the Tobacco Products median (#16 of 47)
No single metric tells the full story. See the KAR:PAKT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pakistan Tobacco Co Ltd is engaged in the manufacturing and distribution of cigarettes, tobacco, VELO, and VUSE. Its products are marketed through brands like Dunhill, Gold Flake, John Player, Embassy, Capstan, and others. Geographically, the company generates a majority of its revenue from its domestic market and also exports its products to other countries.
92GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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