AAVAS FinanciersNSE:AAVAS +2.49%81 Gross Margin % is 34.80% as of Mar. 2026, which is 4% below its 10-year median of 36.32. GuruFocus rates NSE:AAVAS with a GF Score™ of 81/100 and a GF Value™ of ₹2,164.32 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 44 Banks companies, AAVAS Financiers ranks worse than 63.64% 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
AAVAS Financiers had a gross margin of 34.80% 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.
AAVAS Financiers Gross Margin % Related Terms
AAVAS Financiers Gross Margin % Historical Data
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The historical data trend for AAVAS Financiers'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.
NSE:AAVAS vs RKT, FNMA, PFSI: Gross Margin % Comparison
For the Mortgage Finance subindustry, AAVAS Financiers'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.
AAVAS Financiers Gross Margin % vs Banks Industry
For the Banks industry and Financial Services sector, AAVAS Financiers's Gross Margin % distribution charts can be found below:
* The bar in red indicates where AAVAS Financiers'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.
AAVAS Financiers (NSE:AAVAS) has a Gross Margin % of 34.80% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on AAVAS Financiers and its competitors. This is near median its historical median of 36.32. Over the past decade, AAVAS Financiers' Gross Margin % has ranged from 31.19 to 38.71. According to the industry distribution chart, AAVAS Financiers ranks #28 out of 44 companies in the Banks industry, placing it in the top 63.6%.
Is AAVAS Financiers' Gross Margin % too high?
AAVAS Financiers' current Gross Margin % of 34.80% is near median its 10-year median of 36.32. Over the past 10 years, this metric has ranged from a low of 31.19 to a high of 38.71. The Banks industry median Gross Margin % is 41.02. AAVAS Financiers' value of 34.80% is 15.2% below this industry median. Based on the distribution chart, AAVAS Financiers ranks #28 out of 44 companies in the Banks industry, which is below the industry midpoint. Overall, AAVAS Financiers has a GF Score™ of 81/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does AAVAS Financiers' Gross Margin % compare to RKT and FNMA?
According to the Banks industry distribution chart, AAVAS Financiers ranks #28 out of 44 companies for Gross Margin %. This places AAVAS Financiers in the lower half of its industry. The industry median Gross Margin % is 41.02. AAVAS Financiers' value of 34.80% is 15.2% below this benchmark. Historically, AAVAS Financiers' own Gross Margin % has ranged from 31.19 to 38.71 over the past decade. While the company's 10-year median is 36.32 vs. the industry median of 41.02, AAVAS Financiers 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 Banks company?
The median Gross Margin % among Banks companies is 41.02, based on 44 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. AAVAS Financiers's current Gross Margin % of 34.80% is 15.2% 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 AAVAS Financiers and its competitors. For the Banks industry, the median Gross Margin % is 41.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AAVAS Financiers's current Gross Margin % is 34.80%, which is near median its own 10-year median of 36.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AAVAS Financiers stock overvalued right now?
Based on GuruFocus' analysis, AAVAS Financiers (NSE:AAVAS) is currently considered Possible Value Trap. The stock's GF Value™ is ₹2,164.32, compared to a current price of ₹1,520.80 — trading 29.7% below its estimated fair value. The current Gross Margin % is 34.80%, which is near median its 10-year median of 36.32 and 15.2% below the Banks industry median of 41.02. AAVAS Financiers' overall GF Score™ is 81/100 with 5 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 AAVAS Financiers (NSE:AAVAS), the current Gross Margin % is 34.80% 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 AAVAS Financiers (NSE:AAVAS) Overvalued in 2026?
Based on GuruFocus' analysis, AAVAS Financiers stock appears to be undervalued.
The current stock price of ₹1,520.80 is trading 29.7% below its estimated GF Value™ of ₹2,164.32.
GuruFocus considers AAVAS Financiers to be Possible Value Trap.
Key valuation signals for NSE:AAVAS:
Gross Margin %: 34.80% (near median its 10-year median of 36.32)
GF Value™: ₹2,164.32 vs. price of ₹1,520.80 (29.7% below fair value)
Industry Position: 15.2% below the Banks median (#28 of 44)
No single metric tells the full story. See the NSE:AAVAS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AAVAS Financiers Ltd is a housing finance company. The company provides housing loans to customers belonging to the low and middle-income and self-employed segments in suburban and rural India. Its only operating segment is Lending to borrowers. The company's product portfolio includes home loans, land purchases and construction, home improvement loans, home equity, micro, small, and medium enterprise loan, and others. It offers customers loans for the purchase or construction of residential properties and the extension and repair of existing housing units.
81GF Score
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