Avenue SupermartsNSE:DMART -0.95%98 Gross Margin % is 14.55% as of Mar. 2026, which is 2% below its 10-year median of 14.83. GuruFocus rates NSE:DMART with a GF Score™ of 98/100 and a GF Value™ of ₹5,526.62 (Modestly Undervalued). Among 305 Retail - Defensive companies, Avenue Supermarts ranks worse than 75.08% 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
Avenue Supermarts had a gross margin of 14.55% 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.
Avenue Supermarts Gross Margin % Related Terms
Avenue Supermarts Gross Margin % Historical Data
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The historical data trend for Avenue Supermarts'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:DMART vs WMT, COST, TGT: Gross Margin % Comparison
For the Discount Stores subindustry, Avenue Supermarts'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.
Avenue Supermarts Gross Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Avenue Supermarts's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Avenue Supermarts'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.
Avenue Supermarts (NSE:DMART) has a Gross Margin % of 14.55% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Avenue Supermarts and its competitors. This is near median its historical median of 14.83. Over the past decade, Avenue Supermarts' Gross Margin % has ranged from 14.44 to 15.68. According to the industry distribution chart, Avenue Supermarts ranks #229 out of 305 companies in the Retail - Defensive industry, placing it in the top 75.1%.
Is Avenue Supermarts' Gross Margin % too high?
Avenue Supermarts' current Gross Margin % of 14.55% is near median its 10-year median of 14.83. Over the past 10 years, this metric has ranged from a low of 14.44 to a high of 15.68. The Retail - Defensive industry median Gross Margin % is 24.14. Avenue Supermarts' value of 14.55% is 39.7% below this industry median. Based on the distribution chart, Avenue Supermarts ranks #229 out of 305 companies in the Retail - Defensive industry, which is in the bottom quartile relative to peers. Overall, Avenue Supermarts has a GF Score™ of 98/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Avenue Supermarts' Gross Margin % compare to WMT and COST?
According to the Retail - Defensive industry distribution chart, Avenue Supermarts ranks #229 out of 305 companies for Gross Margin %. This places Avenue Supermarts in the lower half of its industry. The industry median Gross Margin % is 24.14. Avenue Supermarts' value of 14.55% is 39.7% below this benchmark. Historically, Avenue Supermarts' own Gross Margin % has ranged from 14.44 to 15.68 over the past decade. While the company's 10-year median is 14.83 vs. the industry median of 24.14, Avenue Supermarts 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 Retail - Defensive company?
The median Gross Margin % among Retail - Defensive companies is 24.14, based on 305 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. Avenue Supermarts's current Gross Margin % of 14.55% is 39.7% 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 Avenue Supermarts and its competitors. For the Retail - Defensive industry, the median Gross Margin % is 24.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Avenue Supermarts's current Gross Margin % is 14.55%, which is near median its own 10-year median of 14.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Avenue Supermarts stock overvalued right now?
Based on GuruFocus' analysis, Avenue Supermarts (NSE:DMART) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹5,526.62, compared to a current price of ₹4,294.60 — trading 22.3% below its estimated fair value. The current Gross Margin % is 14.55%, which is near median its 10-year median of 14.83 and 39.7% below the Retail - Defensive industry median of 24.14. Avenue Supermarts' overall GF Score™ is 98/100. 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 Avenue Supermarts (NSE:DMART), the current Gross Margin % is 14.55% 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 Avenue Supermarts (NSE:DMART) Overvalued in 2026?
Based on GuruFocus' analysis, Avenue Supermarts stock appears to be undervalued.
The current stock price of ₹4,294.60 is trading 22.3% below its estimated GF Value™ of ₹5,526.62.
GuruFocus considers Avenue Supermarts to be Modestly Undervalued.
Key valuation signals for NSE:DMART:
Gross Margin %: 14.55% (near median its 10-year median of 14.83)
GF Value™: ₹5,526.62 vs. price of ₹4,294.60 (22.3% below fair value)
Industry Position: 39.7% below the Retail - Defensive median (#229 of 305)
No single metric tells the full story. See the NSE:DMART stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Avenue Supermarts Ltd is an India-based company engaged in the business of organized retail and operates supermarkets under the brand name of D-Mart. It provides products under the categories of Foods, Non-Foods (FMCG) and General Merchandise and Apparel. Foods category includes products such as dairy, staples, groceries, snacks, frozen products, processed foods, beverages and confectionary and fruits and vegetables. Non-Foods (FMCG) comprises home care products, personal care products, toiletries and other over-the-counter products. General Merchandise and Apparel include bed and bath, toys and games, crockery, plastic goods, garments, footwear, utensils and home appliances. The business operations of the company are principally carried out in India.
98GF Score
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