The historical rank and industry rank for Chaman Metallics's Gross Margin % or its related term are showing as below:
NSE:CMNL'
s Gross Margin % Range Over the Past 10 Years
Min: 6.03 Med: 11.98 Max: 24.81
Current: 22.67
During the past 5 years, the highestGross Margin % of Chaman Metallics was 24.81%. The lowest was 6.03%. And the median was 11.98%.
NSE:CMNL's Gross Margin % is ranked better than 75.3% of 583
companies
in the Steel industry
Industry Median: 13.11
vs NSE:CMNL: 22.67
Chaman Metallics had a gross margin of 30.93% for the quarter that ended in Mar. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Chaman Metallics was 0.00% per year.
Chaman Metallics Gross Margin % Historical Data
The historical data trend for Chaman Metallics'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.
Competitive Comparison of Chaman Metallics's Gross Margin %
For the Steel subindustry, Chaman Metallics'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.
Chaman Metallics's Gross Margin % Distribution in the Steel Industry
For the Steel industry and Basic Materials sector, Chaman Metallics's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Chaman Metallics'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.
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
Chaman Metallics had a gross margin of 30.93% for the quarter that ended in Mar. 2023 => 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.
Chaman Metallics Gross Margin % Related Terms
Thank you for viewing the detailed overview of Chaman Metallics's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Chaman Metallics Ltd is engaged in the business of selling Iron and Steel. The company is engaged in manufacturing and selling Direct Reduced Iron (i.e. sponge iron) which is used as a raw material for making steel in electric arc furnaces and induction furnaces.
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