The Fertilizers & Chemicals Travancore (NSE:FACT) 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
The Fertilizers & Chemicals Travancore had a gross margin of 24.04% 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.
The Fertilizers & Chemicals Travancore Gross Margin % Related Terms
The Fertilizers & Chemicals Travancore 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.
The Fertilizers & Chemicals Travancore Gross Margin % Chart
The Fertilizers & Chemicals Travancore Annual Data
For the Agricultural Inputs subindustry, The Fertilizers & Chemicals Travancore'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.
The Fertilizers & Chemicals Travancore Gross Margin % vs Agriculture Industry
For the Agriculture industry and Basic Materials sector, The Fertilizers & Chemicals Travancore's Gross Margin % distribution charts can be found below:
* The bar in red indicates where The Fertilizers & Chemicals Travancore'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.
The Fertilizers & Chemicals Travancore (NSE:FACT) has a Gross Margin % of 24.04% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on The Fertilizers & Chemicals Travancore and its competitors. This is 108% above median its historical median of 11.57. According to the industry distribution chart, The Fertilizers & Chemicals Travancore ranks #141 out of 248 companies in the Agriculture industry, placing it in the top 56.9%.
Is The Fertilizers & Chemicals Travancore's Gross Margin % too high?
The Fertilizers & Chemicals Travancore's current Gross Margin % of 24.04% is 108% above median its 10-year median of 11.57. The Agriculture industry median Gross Margin % is 24.78. The Fertilizers & Chemicals Travancore's value of 24.04% is 3% below this industry median. Based on the distribution chart, The Fertilizers & Chemicals Travancore ranks #141 out of 248 companies in the Agriculture industry, which is below the industry midpoint. Overall, The Fertilizers & Chemicals Travancore has a GF Score™ of 76/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does The Fertilizers & Chemicals Travancore's Gross Margin % compare to CTVA and CF?
According to the Agriculture industry distribution chart, The Fertilizers & Chemicals Travancore ranks #141 out of 248 companies for Gross Margin %. This places The Fertilizers & Chemicals Travancore in the lower half of its industry. The industry median Gross Margin % is 24.78. The Fertilizers & Chemicals Travancore's value of 24.04% is 3% below this benchmark. While the company's 10-year median is 11.57 vs. the industry median of 24.78, The Fertilizers & Chemicals Travancore 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 an Agriculture company?
The median Gross Margin % among Agriculture companies is 24.78, based on 248 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. The Fertilizers & Chemicals Travancore's current Gross Margin % of 24.04% is 3% 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 The Fertilizers & Chemicals Travancore and its competitors. For the Agriculture industry, the median Gross Margin % is 24.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Fertilizers & Chemicals Travancore's current Gross Margin % is 24.04%, which is 108% above median its own 10-year median of 11.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Fertilizers & Chemicals Travancore stock overvalued right now?
Based on GuruFocus' analysis, The Fertilizers & Chemicals Travancore (NSE:FACT) is currently considered Possible Value Trap. The stock's GF Value™ is ₹1,414.78, compared to a current price of ₹900.45 — trading 36.4% below its estimated fair value. The current Gross Margin % is 24.04%, which is 108% above median its 10-year median of 11.57 and 3% below the Agriculture industry median of 24.78. The Fertilizers & Chemicals Travancore's overall GF Score™ is 76/100 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 The Fertilizers & Chemicals Travancore (NSE:FACT), the current Gross Margin % is 24.04% 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 The Fertilizers & Chemicals Travancore (NSE:FACT) Overvalued in 2026?
Based on GuruFocus' analysis, The Fertilizers & Chemicals Travancore stock appears to be undervalued.
The current stock price of ₹900.45 is trading 36.4% below its estimated GF Value™ of ₹1,414.78.
GuruFocus considers The Fertilizers & Chemicals Travancore to be Possible Value Trap.
Key valuation signals for NSE:FACT:
Gross Margin %: 24.04% (108% above median its 10-year median of 11.57)
GF Value™: ₹1,414.78 vs. price of ₹900.45 (36.4% below fair value)
Industry Position: 3% below the Agriculture median (#141 of 248)
No single metric tells the full story. See the NSE:FACT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Fertilizers & Chemicals Travancore Business Description
The Fertilizers & Chemicals Travancore Ltd is engaged in the manufacturing and marketing of fertilizers and petrochemicals, engineering consultancy and design, and fabrication and erection of industrial equipment. The company has two segments: Fertilizer and Petrochemical. The Fertilizer segment includes Ammonium Phosphate (Factamfos), Zincated Factamfos, Ammonium Sulphate, MOP, NPK 15:15:15, and Organic Manures, while the Petrochemical segment includes Caprolactam. The majority of its revenue is generated from the fertilizers segment.
76GF Score
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