Alpa LaboratoriesNSE:ALPA -0.69%74 Gross Margin % is 40.69% as of Mar. 2026, which is 26% above its 10-year median of 32.42. GuruFocus rates NSE:ALPA with a GF Score™ of 74/100 and a GF Value™ of ₹92.80 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 936 Drug Manufacturers companies, Alpa Laboratories ranks worse than 80.88% 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
Alpa Laboratories had a gross margin of 40.69% 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.
Alpa Laboratories Gross Margin % Related Terms
Alpa Laboratories Gross Margin % Historical Data
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The historical data trend for Alpa Laboratories'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.
For the Drug Manufacturers - Specialty & Generic subindustry, Alpa Laboratories'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.
Alpa Laboratories Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Alpa Laboratories's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Alpa Laboratories'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.
Alpa Laboratories (NSE:ALPA) has a Gross Margin % of 40.69% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Alpa Laboratories and its competitors. This is 26% above median its historical median of 32.42. Over the past decade, Alpa Laboratories' Gross Margin % has ranged from 29.78 to 36.65. According to the industry distribution chart, Alpa Laboratories ranks #757 out of 936 companies in the Drug Manufacturers industry, placing it in the top 80.9%.
Is Alpa Laboratories' Gross Margin % too high?
Alpa Laboratories' current Gross Margin % of 40.69% is 26% above median its 10-year median of 32.42. Over the past 10 years, this metric has ranged from a low of 29.78 to a high of 36.65. The Drug Manufacturers industry median Gross Margin % is 48.50. Alpa Laboratories' value of 40.69% is 16.1% below this industry median. Based on the distribution chart, Alpa Laboratories ranks #757 out of 936 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers. Overall, Alpa Laboratories has a GF Score™ of 74/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Alpa Laboratories' Gross Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Alpa Laboratories ranks #757 out of 936 companies for Gross Margin %. This places Alpa Laboratories in the lower half of its industry. The industry median Gross Margin % is 48.50. Alpa Laboratories' value of 40.69% is 16.1% below this benchmark. Historically, Alpa Laboratories' own Gross Margin % has ranged from 29.78 to 36.65 over the past decade. While the company's 10-year median is 32.42 vs. the industry median of 48.50, Alpa Laboratories 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 Drug Manufacturers company?
The median Gross Margin % among Drug Manufacturers companies is 48.50, based on 936 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. Alpa Laboratories's current Gross Margin % of 40.69% is 16.1% 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 Alpa Laboratories and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alpa Laboratories's current Gross Margin % is 40.69%, which is 26% above median its own 10-year median of 32.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alpa Laboratories stock overvalued right now?
Based on GuruFocus' analysis, Alpa Laboratories (NSE:ALPA) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹92.80, compared to a current price of ₹67.55 — trading 27.2% below its estimated fair value. The current Gross Margin % is 40.69%, which is 26% above median its 10-year median of 32.42 and 16.1% below the Drug Manufacturers industry median of 48.50. Alpa Laboratories' overall GF Score™ is 74/100 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 Alpa Laboratories (NSE:ALPA), the current Gross Margin % is 40.69% 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 Alpa Laboratories (NSE:ALPA) Overvalued in 2026?
Based on GuruFocus' analysis, Alpa Laboratories stock appears to be undervalued.
The current stock price of ₹67.55 is trading 27.2% below its estimated GF Value™ of ₹92.80.
GuruFocus considers Alpa Laboratories to be Modestly Undervalued.
Key valuation signals for NSE:ALPA:
Gross Margin %: 40.69% (26% above median its 10-year median of 32.42)
GF Value™: ₹92.80 vs. price of ₹67.55 (27.2% below fair value)
Industry Position: 16.1% below the Drug Manufacturers median (#757 of 936)
No single metric tells the full story. See the NSE:ALPA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alpa Laboratories Ltd is an India-based pharmaceutical company. It operates in the drug and chemical business segment. The company manufactures and markets pharmaceuticals and related products. It sells products like liquid injection, dry powder injection, tablets, capsules, and ointments.
74GF Score
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