HDFC Asset Management Co (NSE:HDFCAMC) 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
HDFC Asset Management Co had a gross margin of 87.82% for the quarter that ended in Mar. 2026 => Durable 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.
HDFC Asset Management Co Gross Margin % Related Terms
HDFC Asset Management Co 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:HDFCAMC vs BLK, BX, KKR: Gross Margin % Comparison
For the Asset Management subindustry, HDFC Asset Management Co'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.
HDFC Asset Management Co Gross Margin % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, HDFC Asset Management Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where HDFC Asset Management Co'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.
HDFC Asset Management Co (NSE:HDFCAMC) has a Gross Margin % of 87.82% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on HDFC Asset Management Co and its competitors. This is near median its historical median of 88.10. Over the past decade, HDFC Asset Management Co's Gross Margin % has ranged from 61.03 to 90.33. According to the industry distribution chart, HDFC Asset Management Co ranks #121 out of 550 companies in the Asset Management industry, placing it in the top 22%.
Is HDFC Asset Management Co's Gross Margin % too high?
HDFC Asset Management Co's current Gross Margin % of 87.82% is near median its 10-year median of 88.10. Over the past 10 years, this metric has ranged from a low of 61.03 to a high of 90.33. The Asset Management industry median Gross Margin % is 57.90. HDFC Asset Management Co's value of 87.82% is 51.7% above this industry median. Based on the distribution chart, HDFC Asset Management Co ranks #121 out of 550 companies in the Asset Management industry, which is in the top quartile — a strong position relative to peers. Overall, HDFC Asset Management Co has a GF Score™ of 100/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does HDFC Asset Management Co's Gross Margin % compare to BLK and BX?
According to the Asset Management industry distribution chart, HDFC Asset Management Co ranks #121 out of 550 companies for Gross Margin %. This places HDFC Asset Management Co in the top 22% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 57.90. HDFC Asset Management Co's value of 87.82% is 51.7% above this benchmark. Historically, HDFC Asset Management Co's own Gross Margin % has ranged from 61.03 to 90.33 over the past decade. While the company's 10-year median is 88.10 vs. the industry median of 57.90, HDFC Asset Management Co 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 Asset Management company?
The median Gross Margin % among Asset Management companies is 57.90, based on 550 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. HDFC Asset Management Co's current Gross Margin % of 87.82% is 51.7% 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 HDFC Asset Management Co and its competitors. For the Asset Management industry, the median Gross Margin % is 57.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HDFC Asset Management Co's current Gross Margin % is 87.82%, which is near median its own 10-year median of 88.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HDFC Asset Management Co stock overvalued right now?
Based on GuruFocus' analysis, HDFC Asset Management Co (NSE:HDFCAMC) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹2,991.93, compared to a current price of ₹2,606.60 — trading 12.9% below its estimated fair value. The current Gross Margin % is 87.82%, which is near median its 10-year median of 88.10 and 51.7% above the Asset Management industry median of 57.90. HDFC Asset Management Co's overall GF Score™ is 100/100 with 1 warning sign 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 HDFC Asset Management Co (NSE:HDFCAMC), the current Gross Margin % is 87.82% 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 HDFC Asset Management Co (NSE:HDFCAMC) Overvalued in 2026?
Based on GuruFocus' analysis, HDFC Asset Management Co stock appears to be undervalued.
The current stock price of ₹2,606.60 is trading 12.9% below its estimated GF Value™ of ₹2,991.93.
GuruFocus considers HDFC Asset Management Co to be Modestly Undervalued.
Key valuation signals for NSE:HDFCAMC:
Gross Margin %: 87.82% (near median its 10-year median of 88.10)
GF Value™: ₹2,991.93 vs. price of ₹2,606.60 (12.9% below fair value)
Industry Position: 51.7% above the Asset Management median (#121 of 550)
No single metric tells the full story. See the NSE:HDFCAMC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HDFC Asset Management Co Ltd is an asset management company engaged in providing asset management services to HDFC Mutual Fund, Portfolio Management Services, Advisory Services, and Investment Management Services to AIFs. The Group principally generates revenue from providing asset management services to Mutual Funds, Alternative Investment Funds (AIFs), and other clients. The majority of its revenue is derived from within India.
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