Baba Food Processing (India)NSE:BABAFP -5.66%40 Gross Margin % is 9.47% as of Mar. 2026, which is 25% below its 10-year median of 12.57. GuruFocus rates NSE:BABAFP with a GF Score™ of 40/100 and a GF Value™ of ₹46.08 (Possible Value Trap). The stock has 9 warning signs investors should review. Among 1,901 Consumer Packaged Goods companies, Baba Food Processing (India) ranks worse than 85.74% on this metric.
NSE:BABAFP's Gross Margin % is ranked worse than 85.74% of 1901
companies
in the Consumer Packaged Goods industry
Industry Median: 26.37
vs NSE:BABAFP: 9.89
Baba Food Processing (India) had a gross margin of 9.47% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Baba Food Processing (India) (NSE:BABAFP) 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
Baba Food Processing (India) had a gross margin of 9.47% 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.
Baba Food Processing (India) Gross Margin % Related Terms
Baba Food Processing (India) 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.
For the Packaged Foods subindustry, Baba Food Processing (India)'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.
Baba Food Processing (India) Gross Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Baba Food Processing (India)'s Gross Margin % distribution charts can be found below:
* The bar in red indicates where Baba Food Processing (India)'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.
Baba Food Processing (India) (NSE:BABAFP) has a Gross Margin % of 9.47% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Baba Food Processing (India) and its competitors. This is 25% below median its historical median of 12.57. Over the past decade, Baba Food Processing (India)'s Gross Margin % has ranged from 9.76 to 14.67. According to the industry distribution chart, Baba Food Processing (India) ranks #1630 out of 1901 companies in the Consumer Packaged Goods industry, placing it in the top 85.7%.
Is Baba Food Processing (India)'s Gross Margin % too high?
Baba Food Processing (India)'s current Gross Margin % of 9.47% is 25% below median its 10-year median of 12.57. Over the past 10 years, this metric has ranged from a low of 9.76 to a high of 14.67. The Consumer Packaged Goods industry median Gross Margin % is 26.37. Baba Food Processing (India)'s value of 9.47% is 64.1% below this industry median. Based on the distribution chart, Baba Food Processing (India) ranks #1630 out of 1901 companies in the Consumer Packaged Goods industry, which is in the bottom quartile relative to peers. Overall, Baba Food Processing (India) has a GF Score™ of 40/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Baba Food Processing (India)'s Gross Margin % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Baba Food Processing (India) ranks #1630 out of 1901 companies for Gross Margin %. This places Baba Food Processing (India) in the lower half of its industry. The industry median Gross Margin % is 26.37. Baba Food Processing (India)'s value of 9.47% is 64.1% below this benchmark. Historically, Baba Food Processing (India)'s own Gross Margin % has ranged from 9.76 to 14.67 over the past decade. While the company's 10-year median is 12.57 vs. the industry median of 26.37, Baba Food Processing (India) 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 Consumer Packaged Goods company?
The median Gross Margin % among Consumer Packaged Goods companies is 26.37, based on 1,901 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. Baba Food Processing (India)'s current Gross Margin % of 9.47% is 64.1% 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 Baba Food Processing (India) and its competitors. For the Consumer Packaged Goods industry, the median Gross Margin % is 26.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Baba Food Processing (India)'s current Gross Margin % is 9.47%, which is 25% below median its own 10-year median of 12.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Baba Food Processing (India) stock overvalued right now?
Based on GuruFocus' analysis, Baba Food Processing (India) (NSE:BABAFP) is currently considered Possible Value Trap. The stock's GF Value™ is ₹46.08, compared to a current price of ₹25.00 — trading 45.7% below its estimated fair value. The current Gross Margin % is 9.47%, which is 25% below median its 10-year median of 12.57 and 64.1% below the Consumer Packaged Goods industry median of 26.37. Baba Food Processing (India)'s overall GF Score™ is 40/100 with 9 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 Baba Food Processing (India) (NSE:BABAFP), the current Gross Margin % is 9.47% 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 Baba Food Processing (India) (NSE:BABAFP) Overvalued in 2026?
Based on GuruFocus' analysis, Baba Food Processing (India) stock appears to be undervalued.
The current stock price of ₹25.00 is trading 45.7% below its estimated GF Value™ of ₹46.08.
GuruFocus considers Baba Food Processing (India) to be Possible Value Trap.
Key valuation signals for NSE:BABAFP:
Gross Margin %: 9.47% (25% below median its 10-year median of 12.57)
GF Value™: ₹46.08 vs. price of ₹25.00 (45.7% below fair value)
Industry Position: 64.1% below the Consumer Packaged Goods median (#1630 of 1901)
No single metric tells the full story. See the NSE:BABAFP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Baba Food Processing (India) Ltd is engaged in the manufacturing of food-based products such as wheat flour and allied flour products like refined flour (maida), Semolina (suji), Bran etc. The company operates in the agro-products manufacturing industry. It sells its products under the brands brands are Bhajan and Panchakanya. The company generates revenue from the sale of its products.
40GF Score
Get the complete analysis for NSE:BABAFP
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
NSE:BABAFP has been successfully added to your 
