Gujarat State Fertilizers & Chemicals (NSE:GSFC) 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
Gujarat State Fertilizers & Chemicals had a gross margin of 31.32% 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.
Gujarat State Fertilizers & Chemicals Gross Margin % Related Terms
Gujarat State Fertilizers & Chemicals 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.
Gujarat State Fertilizers & Chemicals Gross Margin % Chart
For the Agricultural Inputs subindustry, Gujarat State Fertilizers & Chemicals'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.
Gujarat State Fertilizers & Chemicals Gross Margin % vs Agriculture Industry
For the Agriculture industry and Basic Materials sector, Gujarat State Fertilizers & Chemicals's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Gujarat State Fertilizers & Chemicals'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.
Gujarat State Fertilizers & Chemicals (NSE:GSFC) has a Gross Margin % of 31.32% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Gujarat State Fertilizers & Chemicals and its competitors. This is 10% below median its historical median of 34.66. Over the past decade, Gujarat State Fertilizers & Chemicals' Gross Margin % has ranged from 11.86 to 39.61. According to the industry distribution chart, Gujarat State Fertilizers & Chemicals ranks #76 out of 247 companies in the Agriculture industry, placing it in the top 30.8%.
Is Gujarat State Fertilizers & Chemicals' Gross Margin % too high?
Gujarat State Fertilizers & Chemicals' current Gross Margin % of 31.32% is 10% below median its 10-year median of 34.66. Over the past 10 years, this metric has ranged from a low of 11.86 to a high of 39.61. The Agriculture industry median Gross Margin % is 24.81. Gujarat State Fertilizers & Chemicals' value of 31.32% is 26.2% above this industry median. Based on the distribution chart, Gujarat State Fertilizers & Chemicals ranks #76 out of 247 companies in the Agriculture industry, which is above the industry midpoint. Overall, Gujarat State Fertilizers & Chemicals has a GF Score™ of 74/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Gujarat State Fertilizers & Chemicals' Gross Margin % compare to CTVA and CF?
According to the Agriculture industry distribution chart, Gujarat State Fertilizers & Chemicals ranks #76 out of 247 companies for Gross Margin %. This puts Gujarat State Fertilizers & Chemicals in the upper half of its industry. The industry median Gross Margin % is 24.81. Gujarat State Fertilizers & Chemicals' value of 31.32% is 26.2% above this benchmark. Historically, Gujarat State Fertilizers & Chemicals' own Gross Margin % has ranged from 11.86 to 39.61 over the past decade. While the company's 10-year median is 34.66 vs. the industry median of 24.81, Gujarat State Fertilizers & Chemicals 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 an Agriculture company?
The median Gross Margin % among Agriculture companies is 24.81, based on 247 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. Gujarat State Fertilizers & Chemicals's current Gross Margin % of 31.32% is 26.2% 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 Gujarat State Fertilizers & Chemicals and its competitors. For the Agriculture industry, the median Gross Margin % is 24.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gujarat State Fertilizers & Chemicals's current Gross Margin % is 31.32%, which is 10% below median its own 10-year median of 34.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gujarat State Fertilizers & Chemicals stock overvalued right now?
Based on GuruFocus' analysis, Gujarat State Fertilizers & Chemicals (NSE:GSFC) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹225.56, compared to a current price of ₹163.13 — trading 27.7% below its estimated fair value. The current Gross Margin % is 31.32%, which is 10% below median its 10-year median of 34.66 and 26.2% above the Agriculture industry median of 24.81. Gujarat State Fertilizers & Chemicals' overall GF Score™ is 74/100 with 4 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 Gujarat State Fertilizers & Chemicals (NSE:GSFC), the current Gross Margin % is 31.32% 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 Gujarat State Fertilizers & Chemicals (NSE:GSFC) Overvalued in 2026?
Based on GuruFocus' analysis, Gujarat State Fertilizers & Chemicals stock appears to be undervalued.
The current stock price of ₹163.13 is trading 27.7% below its estimated GF Value™ of ₹225.56.
GuruFocus considers Gujarat State Fertilizers & Chemicals to be Modestly Undervalued.
Key valuation signals for NSE:GSFC:
Gross Margin %: 31.32% (10% below median its 10-year median of 34.66)
GF Value™: ₹225.56 vs. price of ₹163.13 (27.7% below fair value)
Industry Position: 26.2% above the Agriculture median (#76 of 247)
No single metric tells the full story. See the NSE:GSFC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gujarat State Fertilizers & Chemicals Business Description
Gujarat State Fertilizers & Chemicals Ltd is a manufacturer of fertilizers and chemicals. It is structured into two operating business segments: Fertilizer Products and Industrial Products. The company operates mainly in the Indian market and there are no reportable geographical segments. It derives the majority of its revenue from the Fertilizer products segment. The products and services covered under its Fertilizer segment include Urea, Ammonium Sulphate, Di-ammonium Phosphate, Ammonium Phosphate Sulphate, and traded fertilizer products. The Industrial Products consist of Caprolactam, Nylon-6, Nylon Filament Yarn, Nylon Chips, Melamine, Methanol, and Polymer products.
74GF Score
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