Forge Auto InternationalNSE:FORGEAUTO 27 Gross Margin % is 36.61% as of Mar. 2025, which is 13% above its 10-year median of 32.35. GuruFocus rates NSE:FORGEAUTO with a GF Score™ of 27/100. The stock has 3 warning signs investors should review. Among 1,309 Vehicles & Parts companies, Forge Auto International ranks better than 81.89% on this metric.
NSE:FORGEAUTO's Gross Margin % is ranked better than 81.89% of 1309
companies
in the Vehicles & Parts industry
Industry Median: 19.83
vs NSE:FORGEAUTO: 36.61
Forge Auto International had a gross margin of 36.61% for the quarter that ended in Mar. 2025 => Competition eroding margins
Forge Auto International (NSE:FORGEAUTO) 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
Forge Auto International had a gross margin of 36.61% for the quarter that ended in Mar. 2025 => 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.
Forge Auto International Gross Margin % Related Terms
Forge Auto International 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.
Forge Auto International Gross Margin % Chart
Forge Auto International Annual Data
Trend
Mar22
Mar23
Mar24
Mar25
Gross Margin %
28.60
28.28
36.10
36.61
Forge Auto International Semi-Annual Data
Mar22
Mar23
Mar24
Mar25
Gross Margin %
28.60
28.28
36.10
36.61
NSE:FORGEAUTO vs ORLY, AZO: Gross Margin % Comparison
For the Auto Parts subindustry, Forge Auto International'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.
Forge Auto International Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Forge Auto International's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Forge Auto International'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.
Forge Auto International (NSE:FORGEAUTO) has a Gross Margin % of 36.61% as of Mar. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Forge Auto International and its competitors. This is 13% above median its historical median of 32.35. Over the past decade, Forge Auto International's Gross Margin % has ranged from 28.28 to 36.61. According to the industry distribution chart, Forge Auto International ranks #237 out of 1309 companies in the Vehicles & Parts industry, placing it in the top 18.1%.
Is Forge Auto International's Gross Margin % too high?
Forge Auto International's current Gross Margin % of 36.61% is 13% above median its 10-year median of 32.35. Over the past 10 years, this metric has ranged from a low of 28.28 to a high of 36.61. The Vehicles & Parts industry median Gross Margin % is 19.83. Forge Auto International's value of 36.61% is 84.6% above this industry median. Based on the distribution chart, Forge Auto International ranks #237 out of 1309 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Forge Auto International has a GF Score™ of 27/100, reflecting its overall financial health beyond just this single metric.
How does Forge Auto International's Gross Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Forge Auto International ranks #237 out of 1309 companies for Gross Margin %. This places Forge Auto International in the top 18% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 19.83. Forge Auto International's value of 36.61% is 84.6% above this benchmark. Historically, Forge Auto International's own Gross Margin % has ranged from 28.28 to 36.61 over the past decade. While the company's 10-year median is 32.35 vs. the industry median of 19.83, Forge Auto International 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 Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.83, based on 1,309 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. Forge Auto International's current Gross Margin % of 36.61% is 84.6% 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 Forge Auto International and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Forge Auto International's current Gross Margin % is 36.61%, which is 13% above median its own 10-year median of 32.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Forge Auto International stock overvalued right now?
Forge Auto International (NSE:FORGEAUTO) has a current Gross Margin % of 36.61%. The current Gross Margin % is 36.61%, which is 13% above median its 10-year median of 32.35 and 84.6% above the Vehicles & Parts industry median of 19.83. Forge Auto International's overall GF Score™ is 27/100 with 3 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 Forge Auto International (NSE:FORGEAUTO), the current Gross Margin % is 36.61% as of Mar. 2025. 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.
Forge Auto International Ltd is an engineering company engaged in forging and manufacturing of complex and safety-critical, forged and precision machined components such as big rings, small rings, big ball studs, gear blank with a broach, stub axle assembly, flange yoke 325 HS, catering to different industry sectors like auto industry including automobiles, tractors, railways etc. and non-auto sectors like agriculture parts, hydraulic parts, striking tools etc. It serves its customers comprising of domestic and global original equipment manufacturers (OEMs) engaged in manufacturing for both the automotive sector and other nonautomotive sector, used across industries by a diversified base of customers.
27GF Score
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