Andhra CementsNSE:ACL +0.06%39 Gross Margin % is 89.99% as of Mar. 2026, which is 96% above its 10-year median of 45.82. GuruFocus rates NSE:ACL with a GF Score™ of 39/100 and a GF Value™ of ₹118.80 (Possible Value Trap). The stock has 2 warning signs investors should review. Among 395 Building Materials companies, Andhra Cements ranks better than 98.23% 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
Andhra Cements had a gross margin of 89.99% for the quarter that ended in Mar. 2026 => Durable 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.
Andhra Cements Gross Margin % Related Terms
Andhra Cements Gross Margin % Historical Data
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The historical data trend for Andhra Cements'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:ACL vs CRH, VMC, MLM: Gross Margin % Comparison
For the Building Materials subindustry, Andhra Cements'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.
Andhra Cements Gross Margin % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Andhra Cements's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Andhra Cements'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.
Andhra Cements (NSE:ACL) has a Gross Margin % of 89.99% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Andhra Cements and its competitors. This is 96% above median its historical median of 45.82. According to the industry distribution chart, Andhra Cements ranks #7 out of 395 companies in the Building Materials industry, placing it in the top 1.8%.
Is Andhra Cements' Gross Margin % too high?
Andhra Cements' current Gross Margin % of 89.99% is 96% above median its 10-year median of 45.82. The Building Materials industry median Gross Margin % is 26.18. Andhra Cements' value of 89.99% is 243.7% above this industry median. Based on the distribution chart, Andhra Cements ranks #7 out of 395 companies in the Building Materials industry, which is in the top quartile — a strong position relative to peers. Overall, Andhra Cements has a GF Score™ of 39/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Andhra Cements' Gross Margin % compare to CRH and VMC?
According to the Building Materials industry distribution chart, Andhra Cements ranks #7 out of 395 companies for Gross Margin %. This places Andhra Cements in the top 2% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 26.18. Andhra Cements' value of 89.99% is 243.7% above this benchmark. While the company's 10-year median is 45.82 vs. the industry median of 26.18, Andhra Cements 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 26.18, based on 395 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. Andhra Cements's current Gross Margin % of 89.99% is 243.7% 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 Andhra Cements and its competitors. For the Building Materials industry, the median Gross Margin % is 26.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Andhra Cements's current Gross Margin % is 89.99%, which is 96% above median its own 10-year median of 45.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Andhra Cements stock overvalued right now?
Based on GuruFocus' analysis, Andhra Cements (NSE:ACL) is currently considered Possible Value Trap. The stock's GF Value™ is ₹118.80, compared to a current price of ₹52.34 — trading 55.9% below its estimated fair value. The current Gross Margin % is 89.99%, which is 96% above median its 10-year median of 45.82 and 243.7% above the Building Materials industry median of 26.18. Andhra Cements' overall GF Score™ is 39/100 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 Andhra Cements (NSE:ACL), the current Gross Margin % is 89.99% 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 Andhra Cements (NSE:ACL) Overvalued in 2026?
Based on GuruFocus' analysis, Andhra Cements stock appears to be undervalued.
The current stock price of ₹52.34 is trading 55.9% below its estimated GF Value™ of ₹118.80.
GuruFocus considers Andhra Cements to be Possible Value Trap.
Key valuation signals for NSE:ACL:
Gross Margin %: 89.99% (96% above median its 10-year median of 45.82)
GF Value™: ₹118.80 vs. price of ₹52.34 (55.9% below fair value)
Industry Position: 243.7% above the Building Materials median (#7 of 395)
No single metric tells the full story. See the NSE:ACL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Andhra Cements Ltd is engaged in the business of manufacture and sale of cement. The company has single reportable segment manufacturing and selling cement.
39GF Score
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