Ducol Organics And ColoursNSE:DUCOL +1.18%77 Gross Margin % is 34.04% as of Mar. 2026, which is 4% above its 10-year median of 32.58. GuruFocus rates NSE:DUCOL with a GF Score™ of 77/100 and a GF Value™ of ₹199.88 (Possible Value Trap). The stock has 8 warning signs investors should review. Among 1,560 Chemicals companies, Ducol Organics And Colours ranks better than 71.28% on this metric.
Ducol Organics And Colours (NSE:DUCOL) 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
Ducol Organics And Colours had a gross margin of 34.04% for the quarter that ended in Mar. 2026 => 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.
Ducol Organics And Colours Gross Margin % Related Terms
Ducol Organics And Colours 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.
NSE:DUCOL vs LIN, SHW, ECL: Gross Margin % Comparison
For the Specialty Chemicals subindustry, Ducol Organics And Colours'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.
Ducol Organics And Colours Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Ducol Organics And Colours's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Ducol Organics And Colours'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.
Ducol Organics And Colours (NSE:DUCOL) has a Gross Margin % of 34.04% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Ducol Organics And Colours and its competitors. This is near median its historical median of 32.58. Over the past decade, Ducol Organics And Colours' Gross Margin % has ranged from 27.54 to 34.48. According to the industry distribution chart, Ducol Organics And Colours ranks #448 out of 1560 companies in the Chemicals industry, placing it in the top 28.7%.
Is Ducol Organics And Colours' Gross Margin % too high?
Ducol Organics And Colours' current Gross Margin % of 34.04% is near median its 10-year median of 32.58. Over the past 10 years, this metric has ranged from a low of 27.54 to a high of 34.48. The Chemicals industry median Gross Margin % is 23.36. Ducol Organics And Colours' value of 34.04% is 45.7% above this industry median. Based on the distribution chart, Ducol Organics And Colours ranks #448 out of 1560 companies in the Chemicals industry, which is above the industry midpoint. Overall, Ducol Organics And Colours has a GF Score™ of 77/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Ducol Organics And Colours' Gross Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Ducol Organics And Colours ranks #448 out of 1560 companies for Gross Margin %. This puts Ducol Organics And Colours in the upper half of its industry. The industry median Gross Margin % is 23.36. Ducol Organics And Colours' value of 34.04% is 45.7% above this benchmark. Historically, Ducol Organics And Colours' own Gross Margin % has ranged from 27.54 to 34.48 over the past decade. While the company's 10-year median is 32.58 vs. the industry median of 23.36, Ducol Organics And Colours 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 Chemicals company?
The median Gross Margin % among Chemicals companies is 23.36, based on 1,560 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. Ducol Organics And Colours's current Gross Margin % of 34.04% is 45.7% 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 Ducol Organics And Colours and its competitors. For the Chemicals industry, the median Gross Margin % is 23.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ducol Organics And Colours's current Gross Margin % is 34.04%, which is near median its own 10-year median of 32.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ducol Organics And Colours stock overvalued right now?
Based on GuruFocus' analysis, Ducol Organics And Colours (NSE:DUCOL) is currently considered Possible Value Trap. The stock's GF Value™ is ₹199.88, compared to a current price of ₹107.25 — trading 46.3% below its estimated fair value. The current Gross Margin % is 34.04%, which is near median its 10-year median of 32.58 and 45.7% above the Chemicals industry median of 23.36. Ducol Organics And Colours' overall GF Score™ is 77/100 with 8 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 Ducol Organics And Colours (NSE:DUCOL), the current Gross Margin % is 34.04% 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 Ducol Organics And Colours (NSE:DUCOL) Overvalued in 2026?
Based on GuruFocus' analysis, Ducol Organics And Colours stock appears to be undervalued.
The current stock price of ₹107.25 is trading 46.3% below its estimated GF Value™ of ₹199.88.
GuruFocus considers Ducol Organics And Colours to be Possible Value Trap.
Key valuation signals for NSE:DUCOL:
Gross Margin %: 34.04% (near median its 10-year median of 32.58)
GF Value™: ₹199.88 vs. price of ₹107.25 (46.3% below fair value)
Industry Position: 45.7% above the Chemicals median (#448 of 1560)
No single metric tells the full story. See the NSE:DUCOL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ducol Organics And Colours Ltd is engaged in the business of manufacturing and selling pigment dispersions, preparations, concentrates, paste colorants, and masterbatches. The company offers a range of pigment dispersions for various industries like Paints, Inks, Textiles, Detergent, Paper, Rubber, and Plastics. color solutions for various industries like paints, ink, textiles, rubber, plastic, leather, soaps, detergents, and FMCG.
77GF Score
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